Competitor Monitoring Tips | eCommerce Matters Ep. 045

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Episode 45 of the eCommerce Matter's Podcast is now available, entitled 'Competitor Monitoring Tips’.

In this episode, learn how competitor monitoring in e-commerce can give you an edge in the market with our ten tips and tricks on competitor benchmarking, price monitoring, and more.

Where to Listen

🎧 Available to listen now on all other major podcasting platforms.

🎧 Available to listen now on Apple.

🎧 Available to listen now on Radio Public.

🎧 Available to listen now on Spotify:

Podcast Summary

Mastering Competitor Pricing Strategies

In this podcast episode, the hosts delve into the world of competitor pricing strategies and offer valuable insights for businesses looking to optimize their pricing decisions. The conversation is divided into ten actionable tips, each focused on leveraging competitor data to refine pricing strategies and improve market position.

Tip 1 – Initiate Competitor Price Monitoring

The hosts emphasize the crucial importance of initiating competitor price monitoring. For both retailers selling branded goods and those with their own branded products, benchmarking against competitors is vital. This practice ensures businesses remain informed about market dynamics and pricing trends, ultimately influencing their own pricing decisions.

Tip 2 – Verify Match Accuracy

Following the commencement of competitor price monitoring, the hosts highlight the necessity of verifying match accuracy. While automated systems can assist in matching products, human oversight is required to ensure accuracy and validity. Identifying and rectifying outliers is key to basing pricing decisions on reliable data.

Tip 3 – Optimize Your Own Data

The hosts stress the significance of optimizing a business's internal data. Ensuring data quality, such as having accurate GTINs, not only aids in accurate price monitoring but also enhances a business's visibility within search ecosystems like Google. Proper data organization and categorization contribute to a stronger online presence and informed pricing decisions.

Tip 4 – Select Competitors Strategically

The hosts advise businesses to strategically select competitors for price benchmarking. While starting broadly is recommended, gradually narrowing down the list of competitors based on data-driven insights is crucial. The focus should shift from historical biases to objectively identifying key competitors who impact pricing dynamics in the market.

Tip 5 – Establish Your Market Position

The hosts stress the significance of establishing a well-defined market position. Businesses are encouraged to align their pricing strategies with benchmark prices, ensuring they remain competitive within the market. Additionally, the hosts emphasize the importance of considering the Google algorithm's use of benchmark prices to determine relevancy and advertising costs.

Tip 6 – Evaluate Competitor-Led Decisions

Businesses are advised to rigorously evaluate the performance of competitor-led pricing decisions. Monitoring key metrics, such as share of search impressions and cost per acquisition, helps determine the effectiveness of pricing strategies. The hosts emphasize the need to utilize a range of data points to assess the impact of pricing decisions on various aspects of the business.

Tip 7 – Exploit Competitor Product Assortment

The hosts advocate for utilizing competitor data beyond pricing decisions. By sharing competitor product assortment data with purchasing teams, businesses can identify gaps in their product offerings. This insight can inform strategic purchasing decisions, enabling businesses to focus on products that competitors may not be offering.

Tip 8 – Identify Price Change Frequency

The hosts highlight the importance of identifying competitor price change frequency. Products with frequent price changes require careful attention to maintain competitiveness. Businesses are advised to focus on products that experience higher volumes of price changes, as they indicate greater market sensitivity and require more proactive pricing strategies.

Tip 9 – Detect Price Automation Usage

The hosts introduce the concept of detecting competitor price automation usage. By observing the frequency and scale of price changes, businesses can identify competitors using automated pricing tools. This insight offers valuable information about the technological sophistication and operational efficiency of competitors.

Tip 10 – Embrace Price Automation

The final tip emphasizes the adoption of price automation. The hosts underline the benefits of using automated pricing tools, especially in rapidly changing markets. Price automation enables businesses to consistently maintain competitive pricing, respond to market fluctuations, and optimize conversion rates while saving time and operational resources.

Conclusion

In conclusion, the podcast provides a comprehensive guide to mastering competitor pricing strategies. The hosts offer practical insights and actionable tips, urging businesses to leverage competitor data for informed pricing decisions, enhanced market positioning, and improved operational efficiency.