How to Build a Successful Pricing Strategy
The growth of e-commerce across the global retail environment cannot be ignored. Global brick-and-mortar retail sales experienced a decline between 2013 and 2018, while e-commerce more than doubled to reach over $1.7 trillion in 2018 with an expectation to double again to $3.4 trillion by 2023.
As more and more businesses go online to find their consumers, this creates unprecedented opportunities to gain deeper, actionable and real-time insights into their product assortment and pricing mix at a category, brand owner, brand and individual product level.
Using e-commerce data to monitor pricing and product assortment also provides significant benefits compared to traditional brick and mortar channel research. As more store-based retailers adopt a multichannel strategy and move online, technology can be used to automatically capture and organise their full product assortment item by item and from one day to the next. E-commerce data extraction and data science solutions allow companies to quickly monitor dynamic price changes and promotional activity, spot early product trends, track new products and benchmark their own business against their competitors’ without having to leave the office.
Key steps for creating an effective pricing strategy:
- Benchmark your pricing against competing products
- Build your promotional plan – know when, where and how to run promotions
- Align your pricing to specific product attributes
- Adjust your pricing based on market and retail landscape
To learn more about executing these steps, click here.
The rise of e-commerce means that businesses are consuming more detailed and frequent data than ever to inform their strategy. Making sense of all that data remains an enormous challenge. No one solution works for everyone but applying the right technology and data structure can deliver the insights necessary to better understand both the e-commerce space and increasingly fluid and fragmented product assortments.
Download our white paper, How to Optimise your Pricing Strategy Using Ecommerce Data to learn how businesses can use e-commerce data and solutions to implement different strategic initiatives, both online and in-store, and leverage the ever-changing digital landscape.