Most customers base their decision on a product’s price when selecting one with similar qualities. An online store owner must research the prices of comparable products from other vendors in order to give a competitive price.
Today, we’ll discuss keeping an eye on competition pricing and look at methods for gathering data for research.
Why do you need competitor analysis?
The owner of an online store can establish the best pricing for their products to make them as appealing to customers as possible by researching the prices of rival businesses.
In addition to deciding on a fair pricing for your goods, researching what other companies are offering will be helpful:
- – predict sales;
- – find out what strategies are used by competing companies;
- – will allow you to control sales volumes;
- – keeping an eye on competitors’ prices will make assortment planning more successful;
- – in the process of analysis, you will be able to diagnose market volumes, find out the number of your competitors in different product categories;
- – making the best business decisions is aided by visual analytics of competitors’ pricing;
- – by analyzing prices, you can choose the best pricing plan to optimize your earnings;
- – it will be easier for you to sell leftovers quickly, make more sales, and get a better return on your advertising effort if you are aware of what prices rivals are willing to offer;
- – additionally, if wholesale prices based on the findings of rival price monitoring do not allow you to set the required margin level, you will be able to negotiate discounts with suppliers and swap out the current ones.
Price analysis is also required since using the best pricing plan will help you attract the largest possible client base and foster long-term brand loyalty.
Where to get data for analysis
You must first get the basic data before you can begin the analysis. This data can be gathered manually or by employing specialized services.
If your online store has a limited selection of products, you can manually monitor the websites of businesses in your niche and input the information you find into a table with a pre-made list of common goods in Google Docs or Microsoft Excel. However, gathering data manually will take a while.
Utilizing online services that automatically search for sellers, gather prices from online shops and price lists, and offer all the functionality required for a thorough study of the acquired data are considerably more convenient.
Let's use uXprice as an illustration of an online service.
The uXprice SaaS service for price analysis and monitoring is straightforward and simple to use. It may perform an automatic competitor search, gather pricing from adverts, links to specific products, and websites that you designate.
This program can provide recommendations for the best price while keeping an eye on product pricing on a daily basis or according to a timetable you choose.
The service allows for API integration with your website, has the capability of tracking rival prices in 36 countries, and, based on the findings, delivers comprehensive statistics in the form of practical reports that can be downloaded in Excel, PDF, or CSV forms.
You can always get competitor price analyses from your own account on the service website. A general report, a rival report, and “Competitors cheaper than me” report are all available. Graphs that clearly show market movements can be used to offer pricing comparisons.
The uXprice SaaS solution’s analysis enables you to learn which rivals advertise the same product online, their pricing strategy, the market average price of the item, and the median price among sellers.
The service will also compute the recommended price using one of the default templates or your formula. In addition, the customer gets access to information like the minimum and maximum prices on the market, how much your pricing deviates from the average, median, and minimum prices in percentage terms.
The service offers statistics in the form of practical reports for various activities and visually appealing graphs that depict market trends based on the findings of the monitoring. You always have access to pricing comparisons between vendors in your personal account. There are functions for sorting by categories and different filters for the user’s convenience.
uXprice has a number of pricing options, including a free option with a limit on how many products you can use it for and how long you can use it for.
Comparative study of competition pricing will assist in price optimization in your online store, enabling you to consistently offer clients fantastic discounts, increase sales, and boost profitability.
It makes sense to employ one of the online price monitoring services as manual price comparison takes too much time. Consider the ease of use of the interface, the price of the tariffs, and the platform’s technological skills while selecting such a tool.