Big eCommerce companies have many things in common, but one of the most important is understanding the competition. They have to monitor them, see what things they have in common, and which things make them different. But one of the key items to check is its price. Why? Because consumers are price-oriented. According to Jungle Scout, that is the number one reason for them to shop online. 

Competitive pricing analysis is the action of researching your competitors, and performing competitive pricing analysis brings many benefits to your company. But there is one problem. How do you execute a competitive pricing analysis? We will show you how you can do it! 

1- Identify your competitors 

Everybody in online shopping has competitors. But the key here is to know which are your relevant competitors. For example, if you own a small supermarket and want to know your direct competitors, you cannot compare yourself to big shops. One way to know which are your competitors is to search on Google. Another way to do it is to use an SEO analysis tool to know which companies share the exact keywords.   

2- Categorize your competitors 

Now that you know who your competitors are, it is time to organize them. You have to segment them and know who your main competitors are. If you discover new competitors in that search, you can add them to a list called 'New Competitors.' Segmenting your competitors helps you in the future because you can create and personalize your strategies.   

3- Investigate your competitors 

With the list of your competitors done, you have to look at the products they offer and the descriptions. We recommended checking their social media, what they post and where they have a presence. If they have additional content on their websites, such as whitepapers and case studies, download them and read them.   

The main reason to analyze your competitors is to optimize your prices. You have to look at their prices on their website and write them down. Also, check if they also offer their products on online marketplaces and do the same. The goal here is to understand how they price their products. Do they modify their prices frequently? How many times do they run promotions? For this task, we recommend using a pricing tool such as PriceTweakers because it is faster and more accurate than humans. 

Conclusion 

Complete these simple steps, and you will successfully finish doing a competitive pricing analysis. A competitive pricing analysis will help you have a better understanding of the market your company is in. In terms of pricing, this is vital because it assists you in optimizing your prices and knowing what your competitors are doing. But the best solution is to have a program to do this, and PriceTweakers offers you the best tool to monitor the competition. It works 24/7, and companies that use our product improved their pricing strategy creation, sales, and margins. 

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