OnDemand WTP Pricing Research

Geo-Targeted Pricing to Boost e-Commerce Profitability | SPOSEA

Price intelligence is becoming a big buzzword these days. The popularity of Amazon and Google Shopping increases the pressure on e-commerce companies to monitor the prices of their competitors, and adjust their own prices in real-time to stay competitive around the clock. An intelligent optimization of pricing and a strategic thinking is essential to price intelligently and effectively.

Matching the prices of your competitors should be a good strategy if your competitors have a sound pricing strategy themselves. Otherwise it can be a real disaster. And this whole case scenario works only if your customers compare you to this competitor. At this juncture we must analyze our own attitude towards online purchases. The actual competitive situation is a subjective one. It varies from one customer to another. So pricing intelligence tools that give you objective information about your competitor won’t help you to take the right decisions.

There is a simple solution to this problem. A simple process will help you to measure the price shift and its impact on your sales. Run A/B split tests every day and measure the price shifts. This is possible only with an efficient technical setup that can perform a price intelligence survey for free every day. It should not be an objective one, which has little value to drive decisions anyway, but a subjective one, that corresponds to the competitive situation as your customers actually perceive it.

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Geo-Targeted Pricing to Boost e-Commerce Profitability.

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