In this edition of the eCommerce Odyssey Podcast, we discuss dynamic pricing with Burc Tanir from Prisync. Prisync is a competitive price monitoring and repricing tool which enables customers to increase sales and profit by altering pricing in real-time based on market conditions.
Key takes aways:
Automate your Pricing
Tracking price manually is very time consuming and the market changes so quickly you will never keep up. By using an automated tracking solution, you will same time and be more competitive.
Treat channels separately
Each channel (e.g. Google Shopping, Amazon, eBay) has its own competitive landscape, so only compare prices within a channel. On channels that aggregate prices (e.g. google shopping), be careful not to compete against yourself if pricing automatically
Pricing is critical
Many surveys have shown that price is the most crucial factor when purchasing online. The way that results on Google, Amazon et al. are presented means a customer has to actively look for more expensive offers as the cheaps generally come top.
Repricing can make you more money
It is not a simple race to the bottom. On Pricsync, 60% of price changes are upwards. For many retailers, there is an opportunity to increase prices and make more money.
Don’t reprice against everyone
Find your sweet spot by choosing a small number of retailers to reprice against.
Repricing helps with ROAS
Customers will check multiple retailers before purchasing. Being more price-competitive will improve conversion rate, reducing the sale cost on platforms such as Google shopping.
Be transparent on pricing
Being transparent on pricing increases the conversion rate. Free shipping is popular with customers.