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<\/a>\nSince the price is the most important thing in e-commerce, one of the most crucial activities is price monitoring. Simply said, price monitoring (price intelligence) is knowing your competitors’ prices and how your prices fit within your industry. Monitoring your competitors allows you to be proactive, and not just sit around and wait for your competitors to make the next move.<\/p>\n
If you aren’t sure if you should be doing this, I will give you three good reasons to do it:<\/p>\n
The first one<\/strong> is the competitors\u2019 behavior. You should monitor your competitors to see what they are doing. Their behavior is constantly changing and it\u2019s getting more aggressive because the stakes are too high, those being customers and profit. If you aren\u2019t tracking them, you risk to stay behind it the game and lose customers, market share and in the end money.<\/p>\n The second one<\/strong> is consumer price sensitivity. Different target groups have different paying ability, which means some of them are more sensitive to price changes than others. Let\u2019s say that you are selling luxury good. If your price goes up customer can perceive it as even more luxuries and buy it regardless of the change. But if you are selling something that is bought by a large number of people and is essential for their lives, the situation wouldn\u2019t be the same. For example, you are selling milk and decide to increase its price. Many costumers will leave for cheaper brand, so you need to be very careful.<\/p>\n The last one <\/b>is\u00a0price transparency. Don\u2019t think that transparency is the least important one because it\u2019s mentioned last. Generally speaking, it is very important in today\u2019s business world. Price monitoring<\/a> wouldn\u2019t even be possible if the prices weren\u2019t public online. Also, customers prefer when companies are transparent about their prices and their way of doing business. It provides a better shopping experience for them and builds trust between them and a company. Just like it\u2019s easy for you to get information on your competitors on the Internet, it\u2019s easy for customers too. And if you don’t provide correct pricing information to customers, they will leave you for a competitor that is more transparent.<\/p>\n Price monitoring is an important task. If you have one competitor and want to track only a couple of products, it can be done manually and internally. But most of the time, that isn\u2019t the case. You need to monitor many products on multiple websites. It takes time and resources and makes no sense for someone to do it manually. Because of this\u00a0e-commerce professionals\u00a0started using price monitoring tools, such as Price2Spy<\/a>. The tool provides price monitoring, price comparison and repricing services for all industries around the world.<\/p>\n<\/a>
\nHow does it function?<\/strong>
\nThe first decision you have to make is which of the products you want to monitor. Next, you need to know who your competitors are and which of their products match yours. In case you aren\u2019t sure if the products match, our price monitoring tool Price2Spy can do it for you. Product matching can be done manually or be automated. If you\u00a0don’t know how product matching works, here is our previous blog<\/a> post about it. It is crucial to obtain accurate and up-to-date information from the price monitoring tool, to be able to make important business decisions.\u00a0Being a very reliable and flexible tool, Price2Spy (currently trusted by more than 600 companies, worldwide) constantly monitors websites and alerts you\u00a0as soon as it detects that a price (or item availability) has changed.\u00a0Such handy data and functionality will help you to\u00a0make right business decision at any given moment.<\/p>\n