Online retail is an increasingly competitive market, especially as retailers get pulled into price wars that are becoming highly technology-driven. Luckily, Wiser’s new infographic addresses a solution. It outlines what’s driving the changing nature of price wars, why retailers are employing price intelligence and dynamic pricing technologies, and tips for successful implementation of such strategies.
Pricing wars aren’t new, but technology is playing a more significant role in today’s market. Top retailers like Amazon and eBay have their own price checking apps, which help consumers compare prices and buy at the lowest possible price. The most competitive retailers reprice incredibly often to set pricing standards, increase revenue, and gobble up market share. Some of the largest players in the industry, like Walmart and Best Buy, are changing prices 50,000 times per month or more and Amazon reprices at least every 10 minutes. As a result, the use of competitive monitoring tools and dynamic pricing strategies are on the rise. Only 22% of retailers are currently using price monitoring software, putting them ahead of the game, but 29% plan to start in the next year. Retailers are beginning to understand that adjusting their pricing strategy will help them compete on a more even playing field with their competitors.
Pricing intelligence incorporated into a dynamic pricing strategy is the answer to the modern day price war. It enables retailers to meet sales and profit margin goals and ensure that they’re priced competitively. Since the biggest brands are repricing constantly, retailers can keep up by implementing dynamic pricing strategies. Competitive pressure is one of the most important factors that impacts price changes, according to 73.3% of retailers. Dynamic pricing can help boost profit, conversions, customer satisfaction, and brand image.
Contributing Editor: Angelica Valentine, Content Marketer at Wiser.