As an e-commerce business owner, setting the correct product prices is crucial to your success.
However, with fierce competition, it can take time to determine the right pricing strategy. This is where the Dealavo tool comes in handy. By closely monitoring prices on Amazon, you can gain valuable market insight and set your prices to outperform the competition. In this blog post, we'll discuss why you should start monitoring prices on Amazon and how it can benefit your e-commerce business.
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Gaining a competitive advantage by monitoring prices
You can track your competitors' actions using Dealavo's Amazon price monitoring tool and adjust your pricing strategy accordingly. This information is crucial to staying competitive in the online marketplace. With access to real-time data on your competitors' pricing, you can make smarter decisions about your pricing strategy and maintain your competitive advantage.
Dealavo operating principles, source: https://dealavo.com/en/price-monitoring
How does Dealavo work?
- Using Dealavo artificial intelligence, we monitor prices on selected auction platforms, price comparison websites, and even specific stores.
- The internal data quality team still verifies the obtained results
- Competitor's prices are displayed in the Dashboard in a transparent and straightforward way
- You can flexibly analyze the market thanks to the function of creating filters and segments
- Graphical reports allow you to analyze data in a faster way
- If you want to react quickly to changes in the market but do not want it to be done automatically, you can set your e-mail alerts and alerts in the application
- Thanks to the API, Dealavo allows you to integrate with internal programs in your company
- You can export data in any form directly from the Dealavo panel
Control your margins
If you continually lower prices to keep up with the competition, you hurt your profit margins and, ultimately, your bottom line. However, with Amazon Price Tracking, you can track your competitors' price changes and make pricing decisions that keep your margins intact. By monitoring your competitors' pricing history, you can identify opportunities to adjust your pricing strategy and stay ahead.
The Dealavo panel. Source: www.dealavo.com
Manually tracking prices on Amazon is a time-consuming and tedious process. This is where Dealavo's powerful price monitoring software comes in with its automatic dynamic pricing feature – Dynamic Pricing. By automating the pricing process, you can save thousands of hours of work and focus on other areas of your business. With features like price alerts and pricing rules, you can spend more time on strategy and less time changing prices manually.
Dynamic Pricing process, source: https://dealavo.com/en/dynamic-pricing-products
The rules you can use in Dealavo include:
- Between two competitors– the rule allows you to set prices between selected competitors automatically.
- Below/above selected values – an option that allows setting a target margin with an amount or percentage markup (e.g., the fixed product price should include at least a 5% margin).
- Below/above selected competitors – if we use this rule, the algorithm will generate prices lower or higher than chosen competitors.
- Decrease/increase by a specific amount/percentage– This setting allows you to reduce prices by a particular amount or percentage during a given time frame. This means that, for example, every 3 days, the cost of the product is reduced by PLN 1.
- By cost– the “cost plus” principle.
- Based on market position – when using this setting, product prices are based on the market position of the competition. In the settings, you can, for example, assume that prices should be higher than those offered by the cheapest competitors.
- Low stock – Option useful for end-of-series and sales; causes automatic price reduction until low stock levels are achieved.
- Profit optimization – use of artificial intelligence – a rule that deserves special attention. This is an artificial intelligence (AI) pricing optimization mandate. The algorithm learns from the source of collected data and optimally adjusts prices to market conditions.
If you want to see how Dynamic Pricing works in practice, check out the Case Study below:
Dealavo is an essential tool for any e-commerce company that wants to stay competitive in today's online marketplace. By monitoring prices on Amazon, you gain valuable market insight, control your margins, and save valuable time and resources. Choose a reliable tool like Dealavo to help you make informed pricing decisions and outperform the competition. Start tracking prices today and watch your e-commerce sales grow!