How retailers and brands can avoid the race to the bottom in online pricing | Digital Commerce 360

An unrestrained price war on average cuts the price of goods by 3.9%. Retailers and brands can make use of technology to monitor trends, identify opportunities and take a variety of actions to stay away from such drastic price cutting.

There is no denying that Amazon and online shopping as a whole have changed the face of the retail industry. One way this can be beneficial to consumers is competitive pricing, in which various outlets match the lowest price available in an effort to attract or retain shoppers.

Many retailers have moved to automated pricing systems that attempt to undercut competitors and attract more business. In theory, this makes the market more efficient, but in practice this ends up driving profit margins down.

So, how did we get here, and what can brands and retailers do to avoid prices that bottom out and force a negative impact on profits? First, it’s important to understand what’s behind these new retail price wars.

Read complete article here:

How retailers and brands can avoid the race to the bottom in online pricing.