Every brand, manufacturer, and distributor knows that the price you choose plays an important role in gaining a competitive edge. Your prices are not only defined according to your desired margin, product quality, and brand image, but they must also take into account current market trends and the prices set by your competitors.
“Knowledge is power.” It’s essential to knows which prices are currently being charged in your market. It will allow you to evolve as your market evolves, observe rising and falling trends, better understand your customers, and keep an eye on the competition. This way, you can efficiently anticipate any changes and adapt as necessary.
Carrying out this rigorous analysis can be long and tedious if it is done manually. Enter the price monitoring tool, allowing you to save both precious time and money! Let’s take a further look at the different market players, their specifics, and explore how Lengow integrates these e-commerce tools to help you retain a competitive edge on different marketing channels and marketplaces.
Using an external partner, price monitoring tools work by automatically retrieving product data from competitors and then comparing this data with your own.
Firstly, you must choose the scope of the data that you want to monitor. Some service providers will offer to do this and then will carry out a market and competitor analysis for you.
Then it’s up to you to decide if you want to carry out the analysis on each one of your products. You also have the choice, for example, to opt for an analysis of a certain brand or product range if your catalog has many references.
Once the specific scope of data has been chosen, the service provider will begin collecting the data. Prices can be analyzed directly on your competitors’ websites, on marketplaces, and also on price comparison sites. The tool matches the products from your catalog with the products that your selected competitors are selling. The comparison is mostly based on Artificial Intelligence algorithms that use unique product codes (GTIN, EAN), titles, brands, and item specifics, as well as image recognition.
It is important to note that if you use a CMS such as Magento and Prestashop, dedicated modules like Smart Price and PricesTracker are available for you to use. If your needs are more complex, or you have a larger catalog, price monitoring experts such as Paarly, PriceIntelligence, and Prisync can be ideal.
Examples of important criteria to consider when choosing your monitoring tools:
Once the data about your competitors, a list of common references, price differences, price fluctuations over time, etc have been exported, you will have a wealth of valuable information about your market and your competitors at your disposition.
With this data, you can:
Today, e-commerce is highly developed and competitive, meaning it is increasingly important for retailers to monitor their markets and their various competitors. For manufacturers, protecting their brand online is a key issue: it is essential to keep control over the notoriety of their brand. These two challenges can be easily tackled with a high-quality price monitoring tool.
Head of Sales – Price Intelligence GmbH
You can go even further by customizing the prices on your product data sheets, depending on your acquisition channels. For example, you can:
These actions would be even more impactful if you could react instantly. Fortunately, it is now possible to do so with platforms like Lengow, thanks to the implementation of automatic rules.
Lengow boasts a wide variety of partnerships with price monitoring tool providers so that you can adapt the prices in your product data sheets, in real-time, several times a day. To do this, we import the data collected from the repricing tools into your catalog, using our Additional Sources feature. This can be done using a CSV file via an FTP server, for example. Lengow can also set up mathematical rules according to the data provided by these tools so you can adjust your prices based on the competition. This can be done at the product level, on product categories, etc. whilst equally taking into account your different acquisition channels.
NB: If you are on Amazon, you can use their Automatic Price tool: define rules, and minimum and maximum prices, on Amazon and then price changes will be made instantly within your defined price limits. These rules are based on price data provided directly by Amazon.
Once the previous steps are completed, it is important to observe the impact that these price adjustments are having on your sales, which can be done using Lengow’s dashboards to view the distribution results on the different channels and marketplaces you use. The impact can also be monitored with the Lengow connector for Google Analytics, which retrieves statistical data from your e-commerce site.
Don’t wait any longer to discover the benefits of an efficient repricing strategy with Lengow!
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