Posted on 29 January by Andrea Magossi in E-Commerce
Are you an e-commerce owner struggling to beat Amazon's competition with your products’ prices?
Read the following article and discover how to beat amazon on pricing!
It's not a secret that 80% of e-commerce has to deal with the competition of the biggest marketplace in the world.
As reported by Statista, in 2019, the Amazon net revenue amounted to 280 billion U.S. dollars, with a NET income of 11.59bn USD obtained predominantly in the retail sector.
Source: https://www.statista.com/statistics/266282/annual-net-revenue-of-amazoncom/
Source: https://www.statista.com/statistics/266289/net-revenue-of-amazon-by-region/
The advent of Amazon in the retail market has irremediably changed the online prices landscape. Until 2008, the prices of products for webshops changed on average 2 to 4 times a year. Today, given the amazon pricing policies, the estimations are that the items' prices are updated every 10 minutes. There is a need for e-commerce managers to apply frequent changes to the prices of their online offers.
Nowadays, Bezos's platform sells almost any category of product; In one of the latest news, the American giant revealed their upcoming opening to the US drug market.
As reported by Investopedia: "Amazon Prime members will receive discounts of up to 80% on generic drugs and 40% on brand-name drugs if they forgo using insurance."
In 2019, Amazon opened up also in the Netherlands, where it could operate an aggressive downward pricing strategy against the two principal marketplaces in the Dutch market Bol.com and Coolblue.
On Amazon, the most common products' categories are listed with an average price of 7% to 9% cheaper than on Bol.com and Mediamarkt.
So here the recurrent question, how to win the price competition against the colossus of bargain prices?
Let's see 6 easy ways to beat Amazon on Pricing:
1- Scrap Amazon Products' prices.
2- Import competitors' prices list within a click.
3- Get automated reports on competitors' insights on Amazon.
4- Get a detailed overview of your competitors selling your same products on Amazon.
5- Set up a Dynamic Pricing Tool for Amazon.
6- Follow Amazon's selling strategies for your e-commerce.
1- It is not currently possible to manually export any product data from Amazon to a spreadsheet.
Yes, this concern also prices!
That means this action must be carried out in the backend through the use of Scraping software. Through PriceTweakers, we can scrape any product price from an Amazon Shop and show it in an hour user interface. You can also use the price in your strategy.
2- The price fluctuations of online products have grown exponentially in recent years.
As previously mentioned, in congruence with the advent of Amazon, there has been a real price revolution in the eCommerce market.
Today, webshop owners can no longer afford to keep the prices of their products stable for long periods. It is the task of every e-commerce specialist to monitor the prices of their competitors and optimize the offers of their inventory.
True is that in case you have a long catalog, this can be a nightmare!
Let's face it, analyze in detail all the price changes, x the number of competitors and products; In the end, managing and executing your pricing strategy would be an enormous job.
Through a monitoring software like PriceTweakers, you can automate this awful process making price monitoring and inventory pricing updates an easy joke.
3- Data is gold for the digital market.
Consistently having updated insight, it's vital for an online business.
Within a market in constant mutation, having access to any data from your competitors on Amazon is an enormous advantage over them.
Inside the PriceTweakers dashboard, you can quickly get stock availability insights from any Amazon shop.
4- One of the main tasks for a webshop is to monitor who else is selling the same product online and the price.
Keeping track of new competitors joining the market has to be one of the activities in the "to-do list" of any e-commerce specialist.
Throughout the PriceTweakers platform, you will gain complete control to analyze any new player with an Amazon inventory related to yours.
5- With the online retail market constantly changing the prices of the products offered, e-commerce managers need to set automated strategies in reaction to competitors' price variations to gain a competitive advantage.
As reported by Business Insider, Amazon changes product prices 2.5 million times a day, meaning that an average product listed on Amazon changes prices every 10 minutes.
A Dynamic Pricing tool is an essential component of any e-commerce that wants to position its market offers in a winning way.
Webshops can set flexible rules according to the circumstances in the market. The determinants may differ concerning the needs and goals of the business.
The most common elements characterizing product price variations are:
- Product Price in Big Marketplace.
- Historical Product Prices.
- High-demand seasons.
- Future demand estimate.
- Inventory Stocks amount.
- Product value perceptions.
The Pricetweakers Dynamic Pricing (DRS) is an additional module within PriceTweakers that allows you to save time and money, increase the margin, and achieve steady growth.
By making an API connection with your custom-made CMS system or with one of the well-known CMS systems, the prices of all products, categories, or brands are implemented automatically using extensive price rules. Within DRS, you have access to more than 30 different price rules and the associated functionalities, making it possible for every webshop to make the right price strategy and implement it automatically in your CMS.
You also have access to real-time analytics reports that give you immediate insight into whether you have deployed the right strategy or whether you need to make adjustments, so you do not have to wait days to see the direct results. That saves yourself or the company a lot of time so that you can focus on other important matters within the company.
6- Amazon is the big shark in the retail market.
Each price movement profoundly affects the stability of the offers in the referred market niche.
For this reason, fighting against this enormous player is difficult. It's better following its steps.
Let's see which tactics are used on Amazon to sell items at bargain prices while still making a profit.
- Upsells.
Has it ever happened to you that you go to Amazon looking for a device, and you end up purchasing the device, plus the other three connected accessories?
Often, Amazon makes the most profit on related accessories. That way, it can offer the main item at a low price.
By showing related accessories during the checkout, you will increase your revenue and profit margin.
- Offers' Comparison.
Comparing three offers on a price scale for similar products will increase the perceived value in the user's mind towards the intermediate offer, as the offer at too low cost will be seen as low quality.
- Countdown deals.
The FOMO (Fear of Missing Out) it's a widely used marketing tactic. There is proof that our brain gets stressed when it risks losing a possible offer.
That's why countdown offers can have a significant impact on your eCommerce sales.
These are just some of the most commons strategies applied in the Amazon marketplace that you could successfully follow.
As highlighted in this article, the online price war is now more heated than ever.
More and more web stores are selling the same products; moreover, the offer of the products available on Amazon is expanding day by day. The competition is stronger than ever, but the price war can still be won by an eCommerce that follows the right pricing strategy!
#amazonprices #amazonpricestrategy #amazonmarketplace #amazonshops #amazonpricing
SOURCES:
https://www.statista.com/topics/846/amazon/
https://www.netohq.com/blog/how-to-price-for-amazon-australia
https://www.bigcommerce.com/blog/amazon-pricing-strategy/
https://www.mytotalretail.com/article/4-pricing-strategies-help-you-beat-amazon-this-holiday-season/
Share this page
