The price is the most important factor when buying online.
Online and in-store sales are completely different. One of the main features that distinguish them is the facility that allows people to check and compare the same item on different websites. People are able to spend hours searching for the best deal on the Internet.
We spend hours comparing different offers when it comes to purchasing online. But it is unlikely that we would compare the price of a kilo of apples between two different supermarkets, or a pair of sneakers in the mall. When it comes to buying online, comparisons are easy to make, items are shipped to your home, and the first thing people are going to consider is the price.
This is the reason why most people (80%) are actually using the Web as “infocommerce” to get useful information in order to make good deals.
If we look at the fashion world or the luxury industry, where the value associated with the brand is extremely important, price is always among the first 3 parameters considered by customers.
Competitoor’s team knows the online price system very well. We daily track 9,000,000 prices for our e-commerce clients and brands. We get those prices on thousands of online shops.
How the dynamic pricing works
The dynamic pricing system is widely used by entrepreneurs who are selling online. It is useful to change the price of an item in real time and be reactive to the demand from the market.
Thanks to a specific algorithm, we can get different information such as the number of views on a specific product and when it was viewed. After that, it’s able to automatically change the price on the website, making it higher or lower in order to increase sales.
Recent research has shown that the market has reacted positively to this kind of strategy. Moreover, e-commerce entities or brands that have adopted dynamic pricing have increased their revenues by up to 20%.
The most common parameter to consider when it comes to modifying the price is related to the competition’s prices. Competitoor allows you to do that by offering different plans depending on whether you are a big or small e-commerce entity or a retailer that wants to beat the competition on eBay and Amazon.
How much the dynamic price is used
Competitoor knows when an e-commerce entity is using the dynamic pricing system.
Usually it is used the most by marketplaces such as Amazon and eBay. It’s important to add that there is no specific market where dynamic pricing is working better. Electronic items, for instance, but also car accessories, bikes and home furnishings, are fields where this strategy has been very successful.
When using the dynamic pricing strategy
Being able to decide when and how much to change the price is very important for the success of your sales. This kind of decision requires a wide knowledge of your market. For this reason, with Competitoor our customers have the chance to track and check the competition’s prices daily.
Do you need more details on dynamic pricing? Fill the form and we’ll contact you soon.