If you're an online retailer, repricing should never be manual.
Why?
Because it's a long, tedious process that also has a higher margin for error. It is no joke to handle thousands of items; now imagine opting for a manual method to reprice these many items. It is unproductive, but it also brings down the quality of work.
When the pandemic struck, digital presence gained relevance. A significant share of retail activity was taking place through online platforms. As a result, the e-commerce market saw a boom in a way no one expected. This shift hinted at new opportunities and a call for effective strategies.
Why manually repricing your products is not a good idea?
To match your competition, you need to be hands-on with competitor price monitoring. When customers choose to pick from an array of products/services, they'll go for the one that benefits them. Generally, it will be the one that's also quite affordable. In just a matter of clicks, they get a sea of offers and deals. To keep up with customers and competitors, you need to use a price monitoring tool. It will allow you to be competitive and keep your business afloat by helping you stay profitable through data.
There are two ways of repricing products: Manual and Automated.
Price is an important factor in making purchase decisions. A report by Baymard Institute stated that the average documented online shopping cart abandonment rate is 69.82% due to the extra costs like shipping and taxes. The average was based on 46 different studies for cart abandonment. Meanwhile, another study reported that 94% of online buyers compare prices some time or the other before making a purchase online. One e-commerce company that's a fan favorite is Amazon.
The pace at which Amazon reprices its products is genuinely astounding. And with manual price monitoring, you can't match this level of competition. You will have to shift to automated solutions like many other companies that did the same. Plus, upgrading from manual to automation will help save time and boost efficiency.
Reasons to switch to an automated price intelligence solution:
1. No more tedious work:
Manual price monitoring is a cumbersome task even if you're not a big-time online retailer. Not to mention, it's also an exceptionally monotonous activity. Tracking the products in your catalog and that your competitors sell is much more complicated. However, using an automated tool will help cut down on this amount of work.
2. Provides a broader market view:
Unlike manual price monitoring, you don't have to limit the number of products you want to track. You can keep a lookout for all of your competitors' products and their prices.
3. Stay informed on price changes:
It is impossible to update the price in real-time when it comes to the manual form of price monitoring. It's not an advantageous place, given the speed at which the market is expanding. You blink and find that you've missed significant changes like price drops, new competitors' entry, sales campaigns your competitors launched, etc. Automated price monitoring is the way to keep you abreast regarding all these changes. It will enable you to set alerts to detect these changes and react quickly.
4. Reduces human error:
Imagine working for hours to gather essential data only to find trivial errors. It not only gets frustrating but also can impact your strategic decision-making. Errors tend to creep in no matter how careful you have been. But when you use an automated solution, the number of errors will reduce significantly.
5. Focus on data analysis:
Manual price tracking costs you time and effort. However, you can seize this time when you use an automated algorithm. It will enable you to devote time to conduct thorough data analysis. You can focus on the data gathered during the automated search and develop pricing strategies accordingly. It will allow you to be responsive to market changes and learn to optimize your pricing strategy.
6. Stay updated with price changes:
If you're part of a niche market, you can opt for manual repricing. But, if you're jumping into a big pool of sellers selling a popular service or product, automated repricing is a safe bet. Not only will you face your competitors, but there will be the e-commerce giant Amazon. And technically speaking, going through Amazon's entire inventory and repricing things every 10-15 minutes is not in the capacity of a mere human.
7. Increase in the number of sellers:
Usually, sellers reprice their inventory based on the prices set by their competitors. Imagine the influx in the number of sellers, and it's where the chaos begins. With automated repricing tracking these many players in the market is much easier than manual repricing methods.
8. Nobody’s Really Doing It Anymore:
They say that one should not have a herd mentality. But in this case, it may have a positive result. A vast majority of sellers are doing something which will make it clear as to why. Automated tools for repricing are yielding better results. And when backed by data, it might be something you should follow.
9. Manual cost is higher than investing in a tool:
Far too many hours go in a manual job like price tracking. Since it's not something an individual can do alone, the company has to hire more people to get the job done. Paying for a job that a software tool can do is rather foolish. Instead, go for automated repricing so that you don't have to burn pockets.
One of the most widely preferred options, automated repricing, is the go-to choice in the current era. However, manual efforts prove redundant and filled with limitations after a specific time—something you do not experience in automated methods.
Online businesses grow in a competitive environment that demands a proactive response to market changes. With the dynamic pricing of products, businesses must have the ability to act effectively and quickly before the competitor steals the customer. Real-time data means real-time pricing, and achieving this feat is reasonably easy with automated solutions.
Wrapping up
A technological advantage for any business is an efficient way to traverse the online terrain. Automated repricing solutions are more feasible and accurate with quick results. There's a quick return of investment upon using automated pricing software as the immediate outcome. Although manual price tracking can get the job done, it will be more on a small-scale level. Plus, it's no longer valid in the present tech-savvy era with its limited uses.
There are numerous benefits to using automated solutions for an e-commerce store looking to keep a close watch on its competitor's pricing. Obtaining detailed and accurate data on competitors' prices makes the most of your pricing policy and increases the profit margins, allowing you to stay competitive in the long run.
This is where Datahut comes in. With our automated pricing data solutions, you'll be able to develop a solid pricing strategy. While manual repricing is enough to achieve short-term goals, our automated data extraction tools are here to benefit you in the long run. So it's your time to get proactive and competitive! Contact Datahut now.