In our previous article series we showed you how to improve your competitive position and which positive effects arise from the use of software for price optimisation. Additionally, we introduced you to two potential approaches in designing your pricing policy. In today’s article, we will look into the functionality of our award-winning technology and illustrate how blackbee supports online retailers in price monitoring on the internet.
Price optimisation on the internet: How blackbee supports you
Query & association
The retailer provides the system with a list (e.g., a CSV or XLS file) of all of their products for which price optimization should be performed. Relevant information here includes the title followed by procurement, selling and marginal prices, as well as the corresponding EAN/GTIN numbers ideally. The latter are not strictly necessary, since the software is equipped with a high quality matching technology.
In addition, the system requires details of the Internet sources, which are to be searched for suitable product overlaps and price alterations. Online shops, marketplaces and price comparison portals are all possibilities here. With the help of the software, competitors exhibiting a higher conformity in product range can also be uncovered.
To search the Internet for competitor offerings and tom compare the data captured with the retailer’s own data, there now follow the query and association procedures (crawling & matching). The results of the crawling and matching processes, amounting to detailed information on competitor products and prices, can be viewed by the retailer in the software’s web application. This forms the starting point for the intelligent blackbee price optimisation.
Filters & rules
High quality price optimisation solutions precisely portray the individual pricing strategy of an online retailer. To be able to correctly calculate later price optimisations, filters and rules are employed at a preliminary stage. The retailer firstly creates filters which order products into groups, where each product is assigned a single filter. Next come the various rules for price-setting, which are then applied to the filters.
The rules firstly determine which vendors are to be flowed into the price optimisation process. Vendors can thus be only included who do not fall below a certain level in online ratings for just one product group. Even the availability of goods and their sizes, or a certain degree of product overlap can be set as a prerequisite. Noteworthy here is that with blackbee, it is not only low-price strategies that are implementable. It remains equally possible to optimise prices within the high-price segment. Compared to the “common” repricing tools mostly oriented towards lower price, a genuine added value is offered here, to expand market share and to attain the associated increase in visibility at online portals.
What does the use of blackbee imply for me, the online retailer?
The heightening competitive situation in eCommerce is increasing the pressure on shop operators to adapt their product prices constantly to market conditions. A rapid reaction to competitor price alterations contributes towards a full exploitation of margins and thus increasing profits. The monitoring and analysis of markets is the most important requirement in this objective. To save on personnel and time resources in dynamic price-setting, forward-looking retailers are increasingly using automated solutions in price optimization. Data on the offerings of competing market players will ideally be integrated into price-setting here, so that the individual company’s pricing strategy becomes fully implemented.
One such solution in this field is blackbee price optimisation. The software’s detailed and cross-market orientation permits a simple, strategically sensible and secure adjustment of prices according to market conditions. Solutions to automated, intelligent price optimisation currently present an opportunity to implement targeted individual pricing strategies and thus achieve competitive advantages. In combination with the increasingly aggressive price war surrounding eCommerce, they are set to gain even further significance in the future. Retailers unable to perform their price adaptations rapidly and effectively enough will inevitably fall victim to competitive disadvantages.
Test blackbee now and convince yourself of our award-winning technology! Do you require further information on the topic of price optimisation on the internet? Contact us now – we look forward to your message!