Are you looking for a way to sell more on e-commerce marketplaces? It’s time to compete on price.
You might already have the best product and strongest promotions. But until you get competitive with pricing, you’ll still struggle to get ahead. If you’re not continually and dynamically adjusting your list prices, there’s a very good chance shoppers will choose your competitor’s listing over yours.
Nearly 60% of retailers say keeping up with competitors’ prices is their #1 challenge, and most agree that getting their pricing strategies right is “extremely important” to financial performance.
Now more than ever, having a structured pricing strategy in place is crucial.
The question is: Where should you start? The answer lies in automation.
With the latest advancements in e-commerce technology, it’s becoming much easier to compete on price. To see what I mean, let’s take a look at three proactive strategies to keep you ahead of other sellers in your space.
Dynamic Pricing Strategy #1: Monitor Competition Constantly
Today’s marketplaces are designed to empower online shoppers. Searching for a single product can yield a dozen or more results, and if your listing doesn’t rise to the top it’s unlikely to be seen — let alone clicked.
Successful brands and retailers understand that staying ahead of pricing trends requires competitive data analytics that are easy to grasp at a glance. For this reason, visualization dashboards and benchmarking tools are key. The right analytics tools will provide SKU- and ASIN-level insights into how your pricing stacks up to the competition in straightforward, uncomplicated reports.
Dynamic Pricing Strategy #2: Watch for Opportunities to Bundle
Bundling products into single-SKU offerings isn’t just a best practice for competitive pricing. It’s also a great way to differentiate from the competition. For example, there will be plenty of times when a consumer will be considering just one of your items.
But if they see your promotion for an even better deal — a discounted three-pack, for example — there’s a good chance you’ll land an even bigger sale. By grouping popular products into competitively-priced packages, you can inspire consumers to stretch their wallets.
Dynamic Pricing Strategy #3: Centralize Marketplace Management
Whether you log into multiple accounts or rely solely on individual marketplace interfaces, managing marketplaces in silos makes it incredibly challenging to streamline your pricing strategy. The lack of a centralized view can lead to gaps in data, inconsistencies in pricing and delays in diagnosis.
How will you know when your Amazon price becomes higher than what you have listed on eBay or Google Shopping? Consolidating multichannel efforts into a single, streamlined platform can prevent small issues from becoming big problems.
With more sellers and consumers flocking to marketplaces every day, competition has never been tougher. Between optimizing listings, managing errors and fulfilling orders, there’s little time left to scrutinize pricing on hundreds or thousands of SKUs. But with a little preparation and a lot of automation, building a competitive pricing strategy for each marketplace can be a hassle-free process.
For more pricing best practices and more information on what to consider in a dynamic pricing strategy, download our best practices eBook: The Right Price at the Right Time.
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To see ChannelAdvisor’s tools in action or to speak to an e-commerce consultant about your pricing strategies on marketplaces, request a demo today.