Increase sales using big data
Too many competitors with endless product overlap are operating in highly contested eCommerce to remain competitive using manual repricing. This you have known at latest since the last blog entry in our series “5 reasons why you should abandon manual repricing”. We have also shown you that software solutions are far superior to manual methods on a time and cost basis. Today we will be looking particularly at the role of big data and explaining how you can increase your margins and sales through automated repricing.
#4 In manual repricing, you are at the mercy of an unmanageable data flood
Because of the high numbers of shops and products on the internet, huge data volumes are contained within eCommerce, to which new data is also being continuously added. In combination with inconsistent descriptions of manufacturers, products and product characteristics, it is not possible to manually record all data and then to maintain an overview also. In the era of big data, automated pricing tools are hence indispensible in creating meaningful benchmarks and the essential transparency to market conditions.
Intelligent software solutions like blackbee work by innovative product matching – algorithms that compare product data with a high matching accuracy. This allows online retailers to precisely and instantly observe all price alterations by their competitors, as well as optimally adjust pricing strategy to those changes.
#5 Increase sales and optimise margins with automated repricing tools
Using manual repricing alone, you cannot exploit the enormous potential of the available data and also run the risk of sales losses. Pricing attraction, after all, determines in most cases whether customers either buy your products or migrate to another online shop with better prices. Due to the many options in simple price comparison online, customers are increasingly acting on a price-oriented basis. For this reason, a good pricing strategy oriented towards both the market and the competition leads to increased sales. Should competitors offer a cheaper price, retailers can adjust their own and thus achieve an attractive pricing perception among customers. Using automated technologies, you can accomplish dynamic price-setting, in that you always have an eye on both the prices and on the market. Additionally, you can also recognise here where you might care to increase your margins.
With the precise analysis of price alterations over a longer time span, trends in market conditions can also be predicted which could provide you further competitive advantages. Furthermore, the use of automated repricing improves your efficiency, in that the time you save compared to manual repricing can then be better invested in other business processes.
5 reasons why you should abandon manual repricing – Summary
When we draw together all the five reasons in our article series, it becomes clear that, because of the countless pricing alterations and the huge volumes of data involved, manual pricing remains barely feasible and, compared to other market actors, is not competitive over the longer term. We also described which disadvantages arise from manual repricing and which advantages automated software solutions offer you:
- #1 Man versus technology: On grounds of time and cost, it is infeasible to record all price data manually.
- #2 In eCommerce, you encounter an enormous number of competitors offering similar or identical, and thus interchangeable, products. Nobody can withstand this intense competitive pressure using manual repricing.
- #3 The product range of an online retailer is generally too extensive to observe every price change by every competitor for every product using manual repricing.
- #4 The huge volumes of data and the variable descriptions of product characteristics lead to an unmanageable flood of data that cannot be manually handled.
- #5 Using automatic repricing, you can strengthen margins, increase sales and also improve your efficiency.
Would you like to be regularly informed on topics involving eCommerce and market observation? Register now for our free newsletter.