Repricing: Designing competitive prices

Repricing refers to a special concept in online retailing. This is a very decisive factor, especially in online retailing. Customers find it much easier to compare individual amounts and do not need to visit several local stores to do so. Accordingly, retailers must respond and, in the best case, secure an advantage over the competition. This is the only way to effectively increase sales.

Various options for automation

Targeted repricing simplifies manual market monitoring. Companies can react flexibly to price adjustments by competitors and adjust individual offers. Especially in e-commerce, there is very intense competition these days. Customers can take a wide variety of routes to get the product they want. In addition, retailers must remain competitive accordingly and demonstrate added value to users. With repricing, prices are specifically adjusted to the prevailing market conditions.

If they are too high, demand may fall. Prices that are too low logically result in lower profits. With targeted repricing, the perfect price is determined in terms of price elasticity.

What are the advantages of repricing in e-tail?

A decisive factor in repricing is automated market monitoring. This enables ideal price adjustments to be made. Among other things, this involves constantly updating the amounts not only in the company's own online store but also, for example, on the major marketplaces such as Ebay or Amazon.

Ein entscheidender Faktor beim Repricing ist eine automatisierte Marktbeobachtung. So lässt sich eine ideale Preisanpassung vornehmen. Unter anderem geht es dabei darum, die Beträge nicht nur im eigenen Onlineshop, sondern zum Beispiel auf den großen Marktplätzen wie Ebay oder Amazon stets zu aktualisieren.

Why is dynamic pricing advantageous?

With dynamic pricing, providers can increase profitability. Accordingly, profits then increase as well. Thus, it is possible to determine the ideal price for each item. In addition, repricing helps to gradually reduce any remaining inventory and lower storage costs. It is very important for companies to perform automated price adjustment. For their part, customers can visit sites that compare numerous different online retailers.

Accordingly, they quickly realize which of these offers the best price and who is on top. Logically, the latter has the best arguments on its side to sell something. Targeted and correct pricing therefore has a decisive influence on the customer's decision to buy. This also applies to the above-mentioned marketplaces such as Ebay and or Amazon.

Targeted price monitoring as a basis

Even though repricing facilitates and optimizes many processes in the company, businesses face a number of challenges. For example, very large volumes of data have to be managed and then analyzed by the specialist staff. It is very important that this is done in a timely manner. This is because companies have to react quickly to competitors' price changes, for example. Only then can they remain competitive. They need to make quick decisions and show the customers that they also offer a low price.

There are a wide variety of factors to consider when determining the perfect pricing strategy. These include, for example, seasonal fluctuations, personal customer preferences or, of course, price elasticity.

Price monitoring with copio analytics

Price monitoring of your own products in direct comparison with those of the competition is recommended for every retailer, because a full view of the competition and its activities is more important than ever. What are the current prices of the competition? How often and at what times do competitors change prices? Answering these questions is essential when making operational and strategic pricing decisions.

The automated and regular readout of competitor prices by copio analytics provides you with comprehensive data to optimize your prices. The high-performance matching algorithm supports you in assigning the products to be compared, so that repricing can be done quickly and clearly.