Who Can Benefit From Better Pricing? | eCommerce Matters Ep. 029

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On this week's episode of eCommerce Matters... Who can benefit from better pricing? And the answer is, well, everyone! Thinking about your position in the market, and how you can start to use competitor data to inform your pricing decisions, can transform your sales performance. Philip and Rob discuss some of the different ways all retailers can benefit, and where to start!

See the full blog post for a collection of shorts from this week's episode, including some of the key benefits of keeping a keen eye on your competitors' pricing, and your own pricing strategy to optimise your place in the market.

Hosts: Philip Huthwaite (CEO & Founder of BlackCurve) and Rob Horton (Product Director at BlackCurve).

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Full Episode

Highlights

If you're looking for a flavour of this week's episode of eCommerce Matters - treat yourself to this short clip capturing some of the top bulletins.

How can you benefit from tracking competitor prices?

Philip and Rob explain why tracking your competitor prices can help you make crucial decisions about where you are in your market for your product. They also touch on BlackCurve's solution to this - the BlackCurve Tracker.

Podcast Summary

Introduction

In this insightful conversation between Philip Huthwaite and Rob Horton from BlackCurve, the focus is on the crucial topic of pricing optimisation in the realm of e-commerce. They delve deep into the challenges faced by businesses when it comes to determining effective pricing strategies and debunking common misconceptions surrounding pricing decisions.

Understanding the Market

The conversation kicks off by highlighting the paramount importance of gaining a comprehensive understanding of market dynamics and competitor behavior. Philip and Rob stress that businesses need to go beyond surface-level knowledge and instead delve into data gathering and analysis to make informed pricing decisions. They explore the significance of competitive data and alternative data sets, such as demand indicators, in acquiring valuable insights into market trends and customer behavior.

Setting Pricing Rules

Moving further, the speakers delve into the process of setting pricing rules that are aligned with business objectives and market conditions. Philip and Rob emphasize the need to establish safeguards and checks within pricing strategies. They discuss the implementation of minimum margin requirements and maximum allowed price changes as essential measures to ensure pricing decisions are in line with profitability targets. By setting these rules, businesses can avoid potential pitfalls and erratic pricing behaviors resulting from inadequate safeguards.

Implementing Automation

The conversation takes an exciting turn as Philip and Rob highlight the transformative power of pricing automation in the e-commerce landscape. They shed light on how automation can lead to improved visibility, increased traffic, and enhanced competitiveness. Emphasising the role of technology, they explore how automated pricing decisions can ensure consistency across a business's entire inventory. By utilising automated pricing tools, businesses can eliminate manual pricing management and allocate resources more efficiently.

Refining the Pricing Strategy

Philip and Rob delve into the iterative nature of pricing optimisation, encouraging businesses to adopt a continuous improvement mindset. They suggest gradually adding and removing elements within the pricing strategy to assess their impact on sales and profitability. By closely monitoring and analysing the outcomes, businesses can refine their pricing strategies over time, making data-driven adjustments and capturing market opportunities.

Impact on Customer Behavior

Customer behavior is a crucial aspect that the speakers emphasize in relation to pricing decisions. Philip and Rob discuss how pricing impacts various customer touchpoints, including advertising campaigns and organic search visibility. They highlight the need for businesses to align their pricing with competitive ranges to optimise impression share and click-through rates. By offering competitive prices, businesses can attract more traffic and maintain a favorable position in the market.

Benefits of Automation

The speakers delve further into the benefits of pricing automation in e-commerce. They emphasize the significant impact it can have on a business's bottom line. By automating pricing decisions, businesses can achieve higher impression shares, reduce costs in advertising campaigns, and optimise profitability. Philip and Rob stress that pricing automation is not just an optional feature but a vital investment that can yield substantial returns.

Conclusion

In conclusion, Philip and Rob reiterate the crucial role of pricing optimisation in e-commerce success. They urge businesses to embark on the pricing optimisation journey by deepening their understanding of the market, implementing automation, and continuously refining their pricing strategies. By embracing data-driven decision-making and leveraging the power of pricing technology, businesses can achieve increased visibility, drive more traffic, and ultimately maximize profits in the competitive e-commerce landscape.

Overall, the podcast provides an in-depth exploration of the various facets of pricing optimisation in e-commerce, covering topics such as market understanding, setting pricing rules, implementing automation, customer behavior, and the profound benefits of pricing technology. This comprehensive summary serves as a valuable resource for businesses seeking to optimise their pricing strategies and thrive in the dynamic and fiercely competitive world of e-commerce.