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26.9.2022
The US online market will cross almost $1Trillion for the first time in 2024. Now, that is huge. Due to the pandemic, online business got a good boost as people had to follow social distancing. Having said that, it seems that shoppers are leaving nothing and buying a lot online. So, this is the right time to take the help of competitive price analysis research if you are in the eCommerce market. It won’t be wrong if we say that it is quite inevitable to do so.
Competitive price analysis has become the need of the hour to stay ahead of the competition, build a brand and widen your customer base. Though earlier, competitive analysis pricing was a luxury and only big brands could afford it, today the e-commerce landscape has changed. If your prices can’t compete with the competitors while still earning a profit, your business will start plummeting. Not just that, it has become difficult to retain a customer for a long time. So, you need to give them a reason to stay with you for as long as possible.
In this blog, we will explore the role of competitive research in boosting your eCommerce business. A competitive pricing strategy enables a business to attract more customers via price optimization with the help of competitor pricing and product data. Successful pricing analysis can help a business in increasing sales and boost revenue.
Basically, competitor price analysis works by making decisions on the basis of data-driven analysis. One of the main factors to be considered is the competition. You need to look at their present as well as historical prices to gain an insight into the overall pricing trend. You need to know when they hike or lower the prices, and their promotional trends and discounts.
On the other hand, you need to consider the customers as well. You need to have a look at how their buying behavior has changed over time such as their behavioral pattern and more. All of this can be done with the help of competitor price monitoring software. All of this analysis can be done with the help of competitive pricing data so that you can get answers to all the above questions and develop informed price strategies. WebDataGuru’s pricing intelligence platform is the best if you want to create an upward trajectory for the business.
You will be competing with same customers from your competitors. The first step is to categorize the competitors as not all of them are equal. You need to think about the direct competitors, the ones who sell similar products such as Mc Donald's and Burger King or Nike and Puma. There will be other competitors also who offer product that act as a substitute for your products and can compete with you.
Once you know your competitors, you must find out about their operations. With competitive analysis pricing, you have a look at their pricing trends from all angles. There can be a lot of data at your disposal for you to analyze. Hence, it is important to narrow things down a bit. Focus the efforts on data categories that are most important for you.
However, irrespective of the category you choose, manual process and spreadsheet analysis is not feasible or practically possible. It is here that competitor price analysis comes into the picture.
1. Better Accuracy: Competitor price monitoring can answer all your queries. The machine learning tools are at our rescue which can manage enormous loads of data with outstanding speed and accuracy. The competitive analysis pricing software takes away the load of manual work off your shoulders so that your team can focus on important aspects.
Furthermore, accurate data and precise analysis are important to carve out good strategies for pricing and marketing. WebDataGuru provides the best competitor price monitoring tools in 2024 and can guide you to create a flexible pricing strategy for your booming eCommerce business.
2. Sharp Analytics: This automated competitor price analysis performs analysis in real-time. They collect and offer accurate competitor insights. With a data refresh rate of 10 seconds, the competitor price monitoring helps in adjusting the prices on the basis of what are the price trends right now around you. It only helps if you make decisions based on present data.
Analytics need a keen eye for details and you can manually observe but an automated solution guarantees an error-free report. Besides, competitor price monitoring tools are adaptive to your unique needs and can help you in getting the exact results irrespective of the nature of your business. Now, that is great. Moreover, healthy competition always builds a good market that is customer-centric and can boost ethical business culture. Understanding the competition moves can help you in positioning your brand in the market’s perspective which ultimately, can help you sell better.
3. Cost Saving: It can seem overwhelming to suddenly bring in competitive analysis pricing as it can be taken time to figure out, implement, and pay for it. But considering the bigger picture of competition, investing in competitor price analysis software can prove to be a cost-saving measure. They can increase the efficiency of price-setting strategies and track similar products.
Competitive price analysis involves several challenges that can complicate the process. Here are the key ones:
Ensuring the data collected on competitors' prices is accurate and up-to-date can be difficult due to frequent price changes.
Some competitors might not publicly share their pricing information, making it hard to gather comprehensive data.
Competitors may use dynamic pricing strategies that change based on demand, time, or customer profile, complicating analysis.
Variations in local markets, including taxes, shipping costs, and regional demand, can affect pricing and make direct comparisons challenging.
Differences in product features, quality, and packaging can make it hard to compare prices directly.
Choosing the right tools and technologies for data collection and analysis can be challenging, especially for businesses with limited resources.
Predicting competitor responses to price changes is complex, as competitors might change their pricing strategies in reaction to your pricing.
Adhering to legal and ethical standards in price monitoring and analysis is crucial, as certain practices might be considered anti-competitive or infringing on privacy.
Addressing these challenges involves using reliable tools, regularly updating data, understanding market nuances, and maintaining ethical standards in competitive analysis.
Beyond the above-mentioned benefits, there are several other benefits of using competitor price monitoring tools. These benefits can be derived from automated, functional, and competitive pricing databases.
1. Detailed Competitor monitoring: When all the research is done and data is derived, the idea is to identify the weak spots of competitors. Therefore, a lot of time goes into finding out the right competitors. After all, how can a business develop an excellent strategy if you don’t know the exact competitors whom you are competing with? Also, you can’t compete with everyone in the industry. So, you have to shortlist the niche and the competition to focus on only them. This helps you not get distracted by silly price wars. It is waste of time and money. And the pricing tools help you in getting a clearer picture of the market.
2. Market Trend predictions: You need to find the areas where competitors are presented i.e., where their supply is shot or the prices are not ideal. You need to take advantage of the same. With market fluctuation, such areas of opportunity will come up; you just need to identify them.
For instance, during the pandemic, people were more inclined toward free shipping and contactless deliveries. Now, knowing what the shoppers want or the market trend is, can help you deliver the same and save a lot of time. Price monitoring tools draw the perfect graph of the market and give you the insights you need all the way through the process.
3. Higher Profitability: The more capable you are of identifying these opportunity areas, the better your profit margins! Also, if you optimize your prices on a regular basis, it will put you in a great power position for scaling up your business. It will offer you the ability to make informed decisions on the basis of competitive analysis pricing data. You need to make the decision considering the whole product line instead of distinct items.
Not to forget one more important aspect, that competitor price analysis offers more details than just pricing like features of the products, colors, inventory status, market demand, and customer preferences.
4. Designing Effective Strategies: The competitor price analysis tools enable you to come up with strategies that help you in staying ahead of your competitors. The idea is not just to make accurate and profitable decisions based in real-time but also to make the decision ahead of time to beat the competition. This is what competitor price monitoring tools offer. To elaborate, designing effective strategies is vital for every business right from pricing and operations to executions. You need the blue print of every move that you will make in the future. And pricing tools of WebDataGuru lets you have exactly that. Now, what more could you have asked for?
It is to be known that the implementation of a competitive pricing strategy developed on the basis of a competitive analysis pricing tool, will be different for different industries and organizations. While the pricing strategy should be implemented in the early budding stage of the business, it can prove to be more profitable when your business is planning to scale or acquire new customers. If you need to improve your profitability, competitive price strategy derived with help of competitor price analysis software can help.
Which approach will offer you the most profitable results will depend on several factors. However, one thing is common across all sectors, industries and levels of business i.e., the significance of investing in competitor price monitoring tools and having them working as early as possible for your business.
WebDataGuru is the leading data scraping company and provides exquisite pricing tools for all kinds of industries. Get in touch with us today to Place an Inquiry !
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