In any given industry and domain, the stakes are running high. Whether big or small, every player is in the rat race to stay ahead of rivals. By offering the product or service for a competitive price, the business owner can stay ahead of competitors.
What is Competitor Price Analysis?
In this age of eCommerce and online retailing, tremendous growth is happening in the eCommerce industry, with online stores cropping up and causing market disruptions. The various eCommerce websites compete with each other in the various domains, which include:-
- Quality of the product listed in their portfolio
- Website customization
- User-friendliness to access the website
- Affordability in terms of prices
- Easy payment mode
- Swift delivery, among other factors.
Though one can compromise on quality and other terms, Competitive Pricing matters for any eCommerce website, it tends to have enough footfalls. Likewise, the leads get converted to sales.
Competitor Price Analysis and its Importance
From the consumers’ mindset, choosing a product of their interest and choice comes first. Secondly, an urge to price compare a product with two or more online stores arises. As a result, eCommerce websites trying to know about the pricing strategies of their competitors come into action here.
Judgment done by comparing prices will lead to a wise reprising of products and know-how of competitors’ pricing strategies. The task of monitoring competitors’ prices is herculean with an investment of time and manpower, eventually resulting in the need for services on competitors’ price monitoring.
Here, a debate might arise on what if the consumer interprets the low price of a product as a product of low quality or value. Price is perpetually attractive. The factual reasons for consumers getting daunted to shop from an eCommerce website lie in other aspects such as brand, credibility, user-friendliness of sites, promotions, discounts, add-ons etc.
As an eCommerce business owner, here are the key aspects of competitive pricing which you can have in mind. There are numerous factors that an eCommerce website has to look for when opting for competitors’ price analysis services. The most noteworthy key points are as follows:-
- The price analysis service should be a combination of automated and manual processes. As a result, both should ensure that you receive the benefits of both methods with 100% product matching.
- Price alerts/notifications should be sent via e-mail to keep you aware of the constant changes as and when they happen.
- All information should be displayed in a customized dashboard and price matrix. Therefore, it enables easy comprehension of all the necessary data with a single glance.
- Price updates every week and monthly, depending on the products and the nature of the competitors, should be made available.
- Price intelligence must develop pricing strategies for the user and competitor’s price change history, stock availability, and other product attributes.
As an eCommerce business owner, you can consider outsourcing the eCommerce activities of your business to a reliable eCommerce outsourcing service provider.
There are several advantages to outsourcing your business’s eCommerce activities, including outsourcing the competitor price analysis. We’ll tell you the various advantages of doing so.
1. Limited amount of capital required
When an eCommerce business owner decides to outsource the various business activities, including inventory management, warehousing technology implementation, fulfillment, business infrastructure, customer support and competitor price analysis, the business owner will save about 85% on upfront costs. This is one of the most significant advantages an outsourcing service partner can provide. However, on the contrary, if the eCommerce business owner decides to perform all the eCommerce related-business activities by himself with the help of an in-house team, it will require an investment to set up the platform, and recurring investment will be required to make sure that the process is functional. On the other hand, when eCommerce services are outsourced to a reliable partner, it will require a small investment that will be affordable to the business owner. Thus, it makes sense to outsource the business’s eCommerce activities, including competitor price analysis.
2. Exposure to the latest trends and access to the best infrastructure
The eCommerce landscape is dynamic, and it keeps changing. To match pace with competitors in the domain, the business owner must stay updated with the latest developments and trends in the eCommerce domain. This is not an impossible task. However, it can consume a lot of time for the business owner, and it could require investment. However, when the eCommerce activities are outsourced, it will save the eCommerce business owner time and money, and at the same time, it will help the business owner exposure to the latest trends and access to the best infrastructure. It will leave the eCommerce business owner enough time to focus on business activities deemed paramount.
3. Overall business productivity increases
As a business owner, when you take care of the various business activities, you will be juggling between one division and another. However, when you outsource a section of the business activities, you will be surprised to discover that the business productivity has increased manifold. Several eCommerce business owners doing business in various domains have admitted the fact. The bottom line is that if you wish to boost the overall business productivity, you can consider outsourcing the various eCommerce activities of your business like inventory management, warehousing technology implementation, fulfillment, business infrastructure, customer support and competitor price analysis.
Why outsource competitor price analysis with Vserve?
Vserve Solution offers all the above-said services to eCommerce websites to have the best competitive edge. With all the data compiled, the team of experts at Vserve employ the price and category analysts to decipher your competitors’ pricing strategies and help you devise your own to accrue maximum sales. Market analysis is an important service that Vserve provides to convert the collected information into action.
Finally, all because knowing competitors’ prices does matter.
Also, you have to be proficient in such areas to stand ahead of your business competitors. Vserve solution offers eCommerce business owners the proficient and professional competitor price analysis services your eCommerce business requires.
If you wish to take advantage of competitor price analysis for your eCommerce business, you can get in touch with the experts at Vserve.