Price matters on Amazon!
Maintaining competitive pricing on Amazon is the key to win both the buy box and your customers. But, there is a fine line between staying competitive and losing your profit margin. A smart Amazon pricing strategy should have the right balance of maximizing your profits and selling steadily in the marketplace. Here is where monitoring your competitor’s pricing is essential, as it plays a crucial role in shaping your pricing strategy.
What is Amazon Price Tracking?
Amazon price tracking is the method of monitoring and analyzing competitors and market price trends to optimize your pricing strategy. It is either done manually or using an automated competitor price tracking tool.
Why Do I Need to Track Competitor Pricing on Amazon?
As we explained, setting your pricing strategy with detailed market insights has a competitive advantage and improved sales performance. To define further an effective pricing strategy is essential –
To win the Buy Box
Stats prove that 82% of Amazon sales happen through the Buy Box
Amazon’s “Buy Box” algorithm focuses on adding value to its customers by evaluating the right seller for every purchase based on a series of metrics. And, pricing is one of the predominant factors to win the “Buy Box”. To gain this opportunity, an Amazon seller should consistently monitor the market prices and dynamically reprice the product to stay on top competitors.
To Win your Customers
90% of shoppers will head to Amazon and search for the same product, even after finding their product on another website.
It’s because Amazon is known for its competitive pricing, speed-to-light shipping, and reliable customer service. Customers are more likely to purchase the same product on Amazon than with other online retailers when they have a prime membership.
That is why Amazon has made pricing as an influencing factor to rank on top of its search results and appreciate sellers following a competitive pricing strategy.
Now, if you ask, whether you have to develop an in-house Amazon Price Tracking Solution or Outsource it?
Here’s what we would recommend –
Competitor price tracking not only means continually checking on your competitor and pricing your product lower than theirs. But about achieving greater profitability through the effective use of competitor’s data, which makes it time and resource-intensive with a need for expert support.
So we suggest, it’s best to leave the job to an expert. This helps you get back the time and resources needed to focus on your customers.
Let’s look further on reasons to outsource Amazon price tracking services –
Manual Price Tracking on Amazon is Time Consuming:
Amazon sellers who have dabbed in manual competitor price tracking knows it is essential to make analytics based on the vast datasets acquired. Especially when you want to manage thousands of SKUs, it is a daunting task to manage the prices of those SKUs while monitoring their competitors as well.
And with dozens of prices changing dozens of times per day on Amazon, retailers would be remiss to try and control everything manually in-house. A pricing specialist can make sure that you have a complete and accurate set of data, acquired faster, and accessible as and when needed.
Automated Price Tracking is not a Stand-Alone Solution:
Nowadays, automated Amazon price tracking tools are trending in the online market. The tool automatically identifies all your competitor prices for your product and updates your price as per the predefined rules assigned to it. Sellers find it useful to integrate the tool with their Amazon seller account. Still, there are reasons why it cannot be a stand-alone solution for price monitoring.
Not every competitor price tracking tool can be compatible with your Amazon seller account. You need expert support to identify the right tool that best fits your business on Amazon and manage it. Moreover, you need the right skills to understand the algorithm and feed the correct data, as any minor error can result in inaccurate pricing.
Outsourcing can help Save Cost upto 40%
Automated price monitoring tools are expensive and besides hiring an expert, setting up the infrastructure, and training your employees can crunch your margin. Outsourcing competitor price tracking can provide the same quality output but at an affordable cost. Expert Price monitoring partners can offer a complete solution, including the tools and infrastructure needed to provide the service. You only have to pay for the projects and the hours worked.
You can Gain Access to Extensive Analysis and Insights
The purpose of competitor price tracking is to set your price for profitability by capturing more value and sales. An outsourced team can provide a detailed and timely report on competitor pricing details beyond the product level. They can provide information on competitor pricing trends, Amazon price history tracking, and detailed analysis of the marketplace. This information can help you to make well-informed marketing decisions and stay ahead of your competitors.
You can Focus on your Customers:
And, let your outsourcing partners take care of your competitors. Outsourcing allows you to pay attention to the critical decisions facing your customers instead of getting data. A third-party offering should enable you to quickly analyze and visualize market data. So, you can focus on devising marketing and sales strategies instead of juggling with data analytics.
Outsourcing can Ensure Data Accuracy.
An automated price monitoring system can be a real time-saver. But data accuracy can be at stake, especially with extensive product volume input. With tools, it is practically not possible to ensure a 100% match of your product data with that of your competitors. Because not every product specification and SKU detail will automatically match with that of your competitors. That’s when it’s essential to have an integrated price monitoring approach.
With a combination of cutting-edge AI technology and human expertise, Vserve’s Amazon competitive intelligence solution ensures you receive the benefits of both the methods. Our price monitoring experts can manually complete the data search for the missed product matches to ensure results with improved data accuracy in quick turnaround time.
Maximize your Revenue by Optimizing your Pricing Strategy with Vserve Amazon Price Tracking Services:
At Vserve, we deliver a wide gamut of Amazon price tracking and repricing services. We consistently observe your competitor pricing and product details, their pricing history, competitive ranking to provide timely reports and alert notification to make better pricing decisions. Our services are designed for global clients in increasing their opportunity to rank higher on Amazon; magnetize customers and drive more revenue to their business.
Related contents to read: