In today’s highly competitive retail environment, eCommerce price tracking is a critical capability for competing in e-commerce, omnichannel, and even brick-and-mortar retail. If analyzed using systematic approaches and competitive pricing intelligence, eCommerce price tracking can help retailers drive significant improvements in revenue and business growth.
Ecommerce Price Tracking: Why is it important?
eCommerce price tracking plays a crucial role in enhancing both consumer price perception and profitability. Many retailers sell about one-fifth of their product offerings at low prices to maintain a competitive edge. These products often termed ‘key-value product categories,’ are usually best-sellers or high-demand SKUs whose prices play a crucial role in determining market success.
Key-value products can account for more than seventy percent of an average retailer’s revenue but generate only half their profits. However, identifying key-value product categories is as tricky as setting and validating prices for other products because of the sparse historical data and high competition. Ecommerce price tracking helps retailers address these challenges by offering precise pricing recommendations and insights into competitors’ pricing strategies.
Our research-backed approach to eCommerce price tracking has enabled leading players in the retail & CPG sectors to drive measurable growth and profits. Wonder how we can help you achieve similar benefits? Request a free customized proposal to know how we can help you.
About the client
The client is a well-known European retailer with more than one million SKUs in the non-food retail segment. Since they had to cater to the diverse needs of customers from various geographic segments, the client found it challenging to set competitive prices for their offerings.
The client wanted to develop a category-level pricing strategy to optimize profits and gross merchandise value. To achieve this, the client knew that they had to change prices frequently and consider many factors when setting prices. Hence they approached Infiniti Research to leverage its competitive pricing intelligence solutions to conduct an in-depth eCommerce price tracking assessment.
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Our tailored approach
We cater to the diverse needs of global retail and CPG industry players operating in different regions. Our tailored approach to eCommerce pricing combines decades of pricing intelligence expertise and deep industry insights. We empower our clients with market insights and proven pricing solutions to drive profitable growth.
Looking to track the pricing strategies of leading eCommerce companies? We’ve got you covered. Request a free brochure for more insights on eCommerce price tracking and its business benefits.
Our eCommerce price tracking experts analyzed the retailer’s business objectives, focused on thoroughly understanding the business context, and then translated those into smaller tasks. We adopted a comprehensive three-pronged approach to help the client tackle their challenges and enhance gross merchandise value.
An in-depth market study that systematically compared the client’s pricing strategies with the strategies adopted by their competitors. This helped assess the frequency at which their competitors changed their prices and also helped gauge how competitors react to the retailer’s price changes. Data for each product included the key-value category, the price of alternatives, promotions & discounts, and estimates of competitors’ sales volumes were analyzed to create a custom eCommerce price tracking solution unique to the client’s requirements and business objectives. We also offered pricing recommendations, taking into account the retailer’s current business objectives and future needs.
The findings and pricing recommendations offered as a part of this ecommerce price tracking engagement enabled the client to drive meaningful improvements in sales, revenue, and customer price perception within a span of eight weeks. For more insights on our core capabilities and industry expertise – Request more info from our experts.