Mistakes happen everywhere, and humans are bound to make them. But in eCommerce, especially in pricing, errors hurt more. Why? Because they cost companies money. Therefore, online companies look for ways to prevent them. But, which are the most common pricing mistakes that hurt eCommerce companies? Let’s dive into them! 

1- Not using dynamic pricing 

On eCommerce, the prices of the products cannot stay the same. It is crucial to have pricing strategies that are constantly evolving and changing. That is why your business must implement dynamic pricing. A dynamic pricing strategy modifies the prices of your products according to demand, availability, and other factors. This strategy helps you take advantage of market opportunities, and increase your sales and profits, so you must implement it. 

2- Participating in price wars 

Price wars happen when companies lower their prices to steal the customers from their competitors and gain market share. That decreases the profit margins. Price wars also hurt your brand because customers associate cheap products with low quality. Avoid entering price wars because they will not benefit your customers or your company. If you want to learn more about price wars and how to avoid them, click here. 

3- Not monitoring your competitors 

Following your competitors is vital in eCommerce. It helps you know what they are doing, what products they are selling, and identify potential new market trends. It unleashes an unlimited number of possibilities for your company. But when you follow your competitors and retrieve the wrong information, you are in big trouble.  

When you obtain incorrect data from your competitors and use it for your pricing strategy, it will be useless for your company. Your pricing strategy will not work. Do you want to know why? If you are implementing the competitor-based pricing strategy and your values don’t match or come close to the competition, your approach will fail.  

Conclusion 

Pricing mistakes in eCommerce hurt companies a lot because it affects their income. The errors we mentioned above are preventable. How can you do that? By using PriceTweakers. With our program, you can use our Dynamic Pricing (DRS) module that will help you monitor your competitors automatically. You can create pricing strategies where you can increase your sales and take advantage of market opportunities. You can add the maximum and minimum margin of your products. You will never hurt your profits because you will never sell below your desired margins.   

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