Did you know that you can automate your webshop pricing, maximizing conversions?
Few applications make life easier for e-merchants as well as automated pricing. No more time-consuming research, exhaustive flooding in competitors ’webshops, no more handwritten numbering or handwritten excel spreadsheets. With the pricing support app, you can easily set optimal prices automatically, so you can get the most out of your purchase conversions.
Automated pricing – How does it work?
The essence of automated pricing is that you can set the prices of your webstore's products using intelligent pricing software based on the specified parameters. As the competition in the e-commerce market is very strong in most segments, price automation takes place by constantly monitoring the prices and stocks of competitors.
Based on the data, your own e-commerce preferences, and pricing strategy, the app determines the prices of the products - automated and quick, for up to 10.000 products. In addition, these prices can change continuously and dynamically compared to your competitors' pricing.
All of this can save you and your webshop a lot of work and money, plus even better conversions can improve thanks to the optimized prices so your business can make more profit.
Who should use automation in pricing?
Being both a retailer with a smaller or leased webstore system or a high-traffic webstore operator, you can take advantage of many of the benefits of automated pricing. Pricing automation solutions, of course, come with a price: the softwares on the market are available on a monthly fee basis, in different packages, or even by individual agreements, depending on the needs of the retailer. If, after a free trial and various calculations, there is a good value for money, it is definitely recommended to use the software for a longer period of time and then re-evaluate the results to see if it is clear whether the costs will come back or not.
Lack of competition or price sensibility?
If you have a webshop you should study the market that you are participating in, your competitors, how you should position your products and services, and the prices that you want to aim for, not only before your launch but continuously and gather data on a regular basis.
If you see that you hardly have a competitor or your target audience isn’t really price-sensitive, smart pricing software can help you with a broader market survey, e.g. based on an examination of indirect competitors and other considerations, you can ask your customers for the highest possible price.
More intelligent than you think...
More advanced pricing software - e.g. PriceKit - uses artificial intelligence to scan the market, automatically collect data on competitors' prices and stocks, and also search for alternative categories or products that may have escaped your attention or would have been almost impossible to find in the maze of competing offers.
With PriceKit - which can easily be connected to several webshop systems (eg Shoprenter, Unas, Magento) - you can define different pricing strategies even at the product level, e.g. you can be the cheapest, stay in a certain price range, or you can set exactly what percentage you are cheaper or more expensive than a certain competitor or the average market price.
Easy-to-create reports, graphs, real-time data, and email notifications help you make data-driven decisions. And that's not all: PriceKit also has the ability to monitor competitors' pricing behavior and discover their errors - you can take advantage of this to make better offers and gain more customers.
What about conversion?
Prices play a huge role in purchasing decisions. If you manage to show the best price for the user at that exact moment, you will be more likely to convert. For example, if the product you are looking for is not currently in stock at your competitors, chances are that it will be bought at a higher price by the one who needs it quickly. Thanks to the inventory monitoring function of the pricing software, you can automatically increase your prices for certain shortage products, so you can maintain a conversion rate even at higher prices.
In competitive markets, even a small price difference results in more conversions, but be aware of keeping the prices low, as it can significantly reduce profitability. It is more useful to use very attractive, low prices only deliberately, with a specific intention - e.g. inventory sweeping, quick acquisition of new customers - that you apply periodically.
You can use many other techniques to increase your conversion, teamed up with optimized bidding, to further improve your conversion rate. Such methods may include upsell or cross-sell, product comparison, time-limited shopping, or additional service, e.g. offering free shipping.
