Are you tired of playing catch-up in the cutthroat world of e-commerce? Do you feel like your competitors always seem to be one step ahead?
You're not alone. Many business owners and marketers just like you struggle to stay ahead of the curve, especially when it comes to pricing their products competitively.
But here's the thing: You have the solution right at your fingertips. It's called competitor price tracking, and it's a surefire way to keep up with your ecommerce rivals and boost profitability.
Picture this: You're launching a new product or planning a promotion, only to discover that your competitors have beaten you to the punch with lower prices.
Frustrating, right?
Or perhaps you're losing customers to brands offering better deals, leaving you scratching your head wondering where you went wrong.
With this guide, you'll never have to play catch-up again. Say goodbye to lost sales and missed opportunities, and hello to a future where you call the shots.
We'll walk you through all things price tracking from its benefits and how you can apply it to your ecommerce store.
It’s tricky to strike a balance between staying profitable and attracting customers. Price tracking helps you find that balance so that you optimize your prices without alienating your market.
With this knowledge, you'll be able to anticipate your competitors' moves and make informed decisions.
Let's get started!
- What is competitor price tracking?
- What are the benefits of tracking your competitors’ pricing?
- See how your products compare to your competitors
- Adjust and enhance your pricing strategy
- Boost sales and customer loyalty
- How to monitor your ecommerce competitors’ prices
- Manual Tracking
- Automated Tracking
- Boost profitability and stay competitive with price tracking
- Frequently Asked Questions
- How do you find out competitor pricing?
- How to do a competitive price analysis
- How would you suggest monitoring and responding to competitor's pricing actions?
What is competitor price tracking?
Competitor price tracking, also known as competitor price intelligence, is the process of observing how much your competitors charge for products similar to yours. It involves tracking price variations and analyzing product pricing strategies.
Price tracking is a component of a holistic competitive analysis. The goal is to spot patterns and enhance your pricing strategy for optimum revenue.
What are the benefits of tracking your competitors’ pricing?
Monitoring competitors’ prices is beneficial to any ecommerce brand for three main reasons:
See how your products compare to your competitors
With price monitoring, you can see how your competitors adjust their pricing strategy and how your products stack up against theirs.
Prices increase and decrease all the time so observing these trends in your competitors can tell you a lot about how they attract more customers by seeing which products they price higher or lower.
Adjust and enhance your pricing strategy
Price monitoring helps you to stay current with industry trends. The data you gather will inform your pricing decisions.
Instead of pricing according to your whims or emotions, you can adjust your prices according to facts.
Aside from that, you’ll know the best time to promote discount offers and when to adjust prices. You can even look into other pricing models such as dynamic and subscription pricing.
Boost sales and customer loyalty
Ultimately, your goal with competitor price tracking is to boost revenue and nurture customer loyalty.
It’s tricky to strike a balance between staying profitable and attracting customers. Price tracking helps you find that balance so that you optimize your prices without alienating your market.
How to monitor your ecommerce competitors’ prices
Manual Tracking
Before the advent of price tracking software, brands used to monitor prices manually on Excel spreadsheets. This can still be a feasible option if you have only a few competitors to track.
However, in ecommerce where more players are entering the market regardless of industry, manual tracking isn’t an efficient method since it takes time and considerable manpower.
Limited resources significantly narrow the scope of your analysis. Prices can fluctuate daily so daily monitoring is necessary. There’s also a higher risk of errors when tracking manually.
In short, manual price monitoring is simply not enough.
Automated Tracking
Automated competitor price tracking tools are a timesaver for ecommerce brands that don’t want to expend energy on manual tracking, energy that can be placed on more significant efforts.
These tools make it easy to monitor hundreds of products from several competitors accurately and quickly. An automated price tracking tool like Panoramata is cost-effective and doesn’t require technical expertise from your team.
Here’s how price tracking works on Panoramata.
To utilize competitor price tracking tools effectively in e-commerce, start by selecting a reliable tool that fits your needs and budget.
Once you've chosen a tool, input the relevant competitors and products you want to monitor. Set up alerts to notify you of price changes or fluctuations.
Regularly review the data provided by the tool to analyze competitor pricing strategies and identify trends.
Use this information to adjust your pricing strategy accordingly, whether it involves matching competitor prices, offering discounts, or highlighting unique value propositions.
Additionally, leverage the insights gained from these tools to make informed decisions about product positioning, promotions, and overall market competitiveness.
By consistently monitoring and adapting to competitor pricing actions, you can stay ahead of the curve and maximize your e-commerce success.
Boost profitability and stay competitive with price tracking
Whatever software you pick, competitor price monitoring tools will give you insights into how your competitors’ minds work. Use these tools correctly and you can build a better business, encourage repeat sales, and supercharge your revenue.
Frequently Asked Questions
How do you find out competitor pricing?
Finding competitor pricing involves manual research on their websites, utilizing price comparison tools, subscribing to competitors' newsletters for updates on promotions, and monitoring ecommerce marketplaces where competitors may list their products.
How to do a competitive price analysis?
To conduct a competitive price analysis, identify direct and indirect competitors, gather pricing data for similar products or services, compare pricing strategies, evaluate your pricing position, and consider other factors like product quality and customer service.
How would you suggest monitoring and responding to competitor’s pricing actions?
To effectively monitor and respond to competitor pricing actions, set up alerts using price monitoring tools, regularly review pricing data, analyze pricing changes, adjust your pricing strategy accordingly, monitor customer response, and remain flexible to adapt your strategy based on ongoing monitoring and analysis.
