Working in the eCommerce industry takes plenty of time and effort, from customer support to product management and fulfilling orders. At the same time, you have to ensure your marketing strategies attract your target audience over your competitors, primarily if you sell mainstream products.
What if there was a way to guarantee that your product pricing consistently outranks your competitors? Solutions such as dynamic repricing allow you to stand out from the crowd with minimal manual effort on your end.
What is dynamic repricing?
Automated or dynamic repricing is when a system automatically adjusts pricing values based on an algorithm. The algorithm is triggered when the price monitoring system finds that your competitor(s) have altered their prices outside a given bracket. Then, the repricing system changes the costs of your products accordingly.
Dynamic repricing systems are most suitable for established businesses looking to automate their workflow whilst remaining competitive in their respective markets.
How does automated repricing work?
Price monitoring
The next step is to compare the collected prices of products side-by-side. The system uses auto-matching to compare products with the same product codes, but you can also manually match products to your liking.
Repricing algorithm
Finally, the repricing algorithm uses predetermined rules to decide whether your product prices fall into an unwanted range compared to your competitors (e.g. your prices are too high or low). Then, the system changes your prices under the rules you have set either automatically or notifies you for your approval.
The automated repricing system sustains up-to-date prices by repeating the process over time.
Case Study
For example, a shoe retail company in Cyprus sells new Adidas shoes in their online shop. The shop’s target audience is young people who want to buy sneakers online in the Mediterranean region. The eCommerce market for Adidas shoes is very competitive, with many prospective clients comparing different retailers and their prices before finally making a purchase.
The company wants to increase their sales by offering prices at least 10% lower than all of their key competitors, without going under 40 euros.
We would program the repricing system to:
- Collect the prices of the key sneaker competitor companies in the Mediterranean
- Compare the prices with the client’s own
- Make any changes to ensure the client’s products are under the 10% bracket, given that they don’t fall under 40 euros.
This case study is ideal for dynamic repricing services as the highly competitive, fast-moving market is hard to keep track of manually when there are hundreds of products per shop. Automated repricing attracts customer purchases with the best prices on the market while saving time and effort for eCommerce retailers.
Possible repricing rules
- Below/above key competitors by a %
- By position in the market
- Triggered by low inventory, e.g. clearance sales
- AI machine learning. AI is given an optimization goal, and we allow it to learn what prices work best through trial and error.
What we offer
Our price monitoring and data aggregation brand, DataSearch, gives us a solid base to work with when implementing smart repricing systems. We offer a service to clients on request for collection, integration, and dynamic repricing systems.
Make your prices pop with automated pricing solutions!
Want to take control of your price points?
With the power of DataSearch, you can find, receive, and analyze pricing data with the click of a few buttons.
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