Why price-matching is the perfect strategy for your eCommerce business?

Posted on 19 April by Simon Gomez in Pricing strategies


Consumers are driven by the price when they are shopping. A study by the e-tailing group showed that 94% of online shoppers invest time to find the lowest price for products. That happens because customers are always looking for better deals for their products. For that reason, companies need to deploy the best pricing strategy to target customers.  

One tactic your business can use to reach customers is applying the price-matching strategy. Price matching is when a seller decides to match a lower price from a competitor in the market. Companies use this strategy to save time and money because customers get the lower price available without visiting another shop. It improves your customer loyalty and increases your brand trust. 

Price-matching is used by large online retailers and marketplaces like WalmartTarget, and Best Buy. Each store has its policies regarding price-matching, so you have to read them first to understand how it works. Since the eCommerce world is competitive, applying price-matching seems like the perfect strategy, right? So, these are the advantages of using the price-matching strategy. 

1- Increase in sales 

Online sellers aim to sell more products. Thankfully, price-matching helps you with that. According to a Jungle Scout report, the number one reason consumers shop online is low prices. Think the price-matching from the customer's point of view. After looking online for a product on many websites, you finally get the item you wanted for a lower price.    

2- Competitive prices 

The pricing of the products is one of the keys to surviving in the eCommerce world, and having competitive prices on the market is tricky. But there is another problem. It takes a lot of work when you manually monitor the prices of your competitors and manually modify your products' prices.  

Price-matching helps you with that. Although you still have to monitor your competitors with the price-matching strategy, your items will have a lower price than your competitors. Customers will pick your company over the competition due to that. Also, it helps your company build brand awareness. 

3- Increases consumers' trust  

As we told you before, consumers are driven by low prices when they are shopping. But they are also interested in other factors to know if they are buying from a reliable and trustable retailer. Price-matching helps you build that trust.  

You know that price-matching, on paper, benefits the consumers because retailers are willing to sacrifice some dollars to offer the lowest price to their loyal customers and potential new ones. That creates the confidence and trust customers are looking for in a business. Therefore, price-matching helps you have loyal customers.    

Conclusion 

Price-matching is a pricing strategy that helps online businesses and brings many benefits to them and consumers. But if you do not know how to implement it or do it wrong, it will lead your company to disaster. Thankfully, PriceTweakers is there for you to help you! With PriceTweakers, you can create pricing strategies, such as price-matching, and you can monitor your competitors. Our program offers many reports to visualize the right picture. Contact us here for more information. 

 


Share this page

Once a month we send out some information about new features of our software and interesting content.

Posted on 19 April by Simon Gomez in Pricing strategies

How to optimize your online store for summer sales?

Posted on 24 June by Simon Gomez in Pricing strategies

Creating a MAP agreement: What are the dos and don'ts?

Posted on 23 June by Simon Gomez in MAP monitoring

Which are the pricing mistakes that hurt your eCommerce company?

Posted on 22 June by Simon Gomez in Pricing strategies