How to manage prices on comparison engines? We have tips not only for Polish e-commerce

Article published 27.01.2022

Successful online sales are affected by several factors. The site's appearance, traffic, and customer reviews are important. But in the long run, they are dominated by a better product price. Streamline the management of your online store and target customers' favorite comparison engines. We will show you how to manage their pricing policy using the Dealavo tool.

Overview of the Polish market situation

Comparison engines still hold a high position with Polish customers. The most popular platform is Allegro, which is targeted by up to 70% of shoppers. However, it is not the only place to shop online. Other channels are also popular, including:

  • marketplaces (Amazon, Erli, Allegro, Empik, Shopee)
  • product search engines (Ceneo and Google Shopping).

Do you want to get more customers on Polish e-commerce? Advertise on Allegro. Learn how it works in more detail with our article.

The options offered by these platforms vary considerably, and we recommend that you analyze them in advance. What should you consider?

  • which products are popular in a given channel
  • what is the competition there (number of alternative offers for each product)
  • products prices
  • fees and commissions

Our tip: Don't forget to take into account even specialized comparison engines. It is less competition there.

How to work in the international market

There is currently a lot of options for expansion. It is also caused by the growing popularity of international sales platforms. For example, the world giant Amazon recently entered the Polish market. When entering foreign markets, check:

  • local sales and promotional channels
  • competition
  • its pricing policy
  • consumer behavior of local shoppers
  • legal and technical restrictions

The first step in market research is to identify the local sites where consumers shop most often. For example, use the free Similarweb tool. When analyzing the competition, also focus on its sales channel in the given product category. See what it looks like with electronic products:

Competition analysis. Source: https://dealavo.com/pl/

Have you understood the competition and the most popular sales channels? Focus on analyzing the prices of your and other stores' offer.

How to analyze prices and business environment

Online stores face big competition, especially when selling the same or similar products. It is vital to know their offer in as much detail as possible. It will help you determine the appropriate pricing strategy.

You can perform the analysis manually. However, it is a time-consuming solution. Intelligent online tools can significantly streamline the process, and Dealavo is one of them. The price monitoring platform provides a quick and accurate overview of the market where you operate. What you can track with it:

  • competition offer
  • price competitiveness of your business
  • identify competing businesses and their supply
  • look for opportunities to increase sales profits

You can also check at what levels your prices are formed and in which competing stores your products are sold. Take a look at the use of this option on the example of an RTV store:

Price monitoring. Source: https://dealavo.com/pl/

From the example: The most significant competition is the Tanietelewizory.pl store, with which the analyzed store has up to 950 identical products. But almost 75% of them are being sold more expensive at this store. And this is a good starting point for further analysis.

How does the communication and marketing of this business work? What audience segment is it targeting? What other shopping incentives does it use? This information helps you to better plan your activities.

Pricing strategy and dynamic pricing

How to keep up with changing market conditions and implement a pricing policy that will stand in time and allow you to maximize profits?

Business strategies are evolving along with e-commerce. Using simple ones such as cost plus is no longer effective. Also, remember that your only goal should not be to set a lower price than your competition. Such behavior can lead to price wars.

Dealavo recommends constant monitoring of the product prices available on the market and in a given sales channel. Pricing automation using intelligent algorithms is used for this - the Dealavo tool works based on a dynamic pricing strategy.

This solution consists of automatic price changes in your online store according to predefined rules, such as presence in the TOP 3 best offers in Google Shopping. Prices in online stores change dynamically, and it may turn out that adjusting prices by a few euros can quickly get your store to the top of the search results.

As here:

From the example: Note that adjusting the price by 2 PLN (0,45 EUR) increased visibility and changed the position in the ranking. The dynamic pricing platform constantly monitors prices in the market and adjusts them automatically in your online store so that they remain at a level that guarantees optimal earnings.

Competition in e-commerce requires in-depth market analysis, especially when you want to enter foreign markets with your product. Simple pricing models give way to automatic monitoring and adjusting prices based on established rules and criteria. Tips from Dealavo allow you to optimize the online sales process and tailor your pricing strategy to each channel.

 

We have created the article in collaboration with Dealavo, which offers e-commerce analysis solutions for online stores and manufacturers. It specializes in software for price monitoring and online store automation and DPSM solutions (Distribution, Pricing, Shelving, Merchandising) for manufacturers. Dealavo offers its services in 32 markets, cooperating with international companies and Poolish market representatives.

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