Automated Pricing Strategy
Published by Abbi in Amazon, Amazon Repricer
Sometimes when you go shopping, it is easy to find a product and completely fall in love with it. Only then will you check the price tag and find it's more expensive than you had been willing to pay. You then have to make a snap decision about whether it's worth the money. More often than not, you will likely consider it for a while, give up and then leave the store all together.
However, things are slightly different in the world of online shopping. The price is usually in bold right next to the product and with no tactile option for the item, it is normally the first thing buyers notice and consider. This sets the shoppers expectations and intentions for the product they are looking at.
Once a consumer's interest is piqued by the price, they will then look into other factors, such as the product description and specifications. Essentially this means that pricing is a huge deciding factor for online buyers, and so it's vital that ecommerce sellers get it right. In fact, in a survey done by BigCommerce 87% of Americans say price is the top most influential factor in determining where they shop online.
Consider the amount of choice and the ease with which online consumers are able to shop around. If your prices don't match up to the expectations of what they're willing to pay there is nothing stopping them from searching for an alternative, especially with the amount of competition in the market. With the use of price comparison tools on the rise as well, it's never been easier for consumers to effectively and efficiently sort through products.
This is where automated pricing comes into play for ecommerce sellers. As there is a huge amount of competition in almost every product category these days, it is essential to make pricing strategy one of your top priorities. This means keeping a watchful eye on your competitor's pricing strategies and knowing your market value.
The only truly effective way to do this is by using a dynamic pricing strategy that constantly changes with the market. However, doing this manually is not only an impossible task, but also requires a lot of time and resources. Imagine you have over 100 products that you constantly have to compare against the prices of your competitors and how much time that would take!
A simple solution is to invest in automated pricing software, which will handle this activity for you, as well as providing insights into the market.
Automated pricing systems will allow you to set up maximum and minimum prices to ensure that you are not only gaining sales, but also gaining the highest profit margins possible. Once set up, the repricer will continuously study other similar products to automatically configure your prices to allow the best results for you. This doesn't just mean setting your products at the lowest price, but can also include an increase in price when competitors go out of stock, for instance. As well as this, you are able to set minimum and maximum prices to make sure you are never priced out of making a profit or devaluing your product.
Having a good pricing strategy will mean creating the best profit for your business and making sure you can beat the competition. Check out Seller Republic and see how we can maximise profit for you as one of the quickest and cheapest repricers out there. Don't forget our newest feature, the Max Price Reset, which will allow you to always get the Buy Box at the highest possible price based on the current market.
Check us out by clicking on the link below!