The primary objective of any eCommerce retailer is to develop a solid strategy that leads to the improvement of their business. Activities such as publishing beautiful ads, great support, excellent user experience, segmented and personalized emails can have a positive impact on any online business. However, there is one area often neglected by many – repricing optimization. Having an effective pricing system is nonnegotiable to boost your e-commerce success especially in a more competitive world. Although repricing optimization is not a new concept; nevertheless, e-commerce retailers have begun to take advantage of it. Most e-commerce businesses arbitrarily optimize their prices based on various factors considering the significance and impact it has on their business.
How does Repricing Work
Assuming it was in the evening at your home and you decide to take a trip to your favorite joint. You decided to book an Uber, but the fees are outrageous. Within some minutes, you received a call from your boss for an urgent job. After completing the task, you decided to recheck the Uber app and “boom” to your surprise, the rate is 50% lesser than when you checked. What strategy do you think Uber deployed for its business? Will you book the trip or wait for another hour? Well, you will not waste a second to hit the book button on the app.
Uber followed a simple strategy – repricing to attract more customers. Repricing is a strategy where you update the prices of your products through various eCommerce websites in real time using technology and automation. Pricing is the pillar of e-commerce and studies have shown that about 90% of online shoppers spend enormous time finding the best deal to buy. Importance of Repricing Optimization.
While many online e-commerce retailers use repricing optimization, the clearest case is that of Amazon. The website continually changes and updates its prices on a 10-minute interval. This has contributed to its revenues increasing by 27.2%. There are specially designed “Amazon Seller” Pricing Optimization Software that perform this automatic repricing. Interestingly, you can get more information concerning this from the Seller Republic.
Another retail giant that has adopted this strategy is Walmart, who unlike Amazon changes its prices over 40,000 times per month. Repricing optimizing allows retailers to have valuable understandings on industry trends. If you have an eCommerce store, it is high time to consider repricing optimization because it is the future of e-commerce and it influences your business. The benefits of repricing in e-commerce are abundant, ranging from the control of the market, improved revenues, and margins, customized prices based on demographics, demand, and season. As such, prices continuously remain optimized and reasonable in the e-commerce market. Repricing Optimization and the future of E-commerceLosing your sight in a competitive market like e-commerce for a period can cause a lot of damage to your business. Being uncompetitive in the market can cause a substantial decrease in your sales and revenue. Nevertheless, keeping track with the market, gathering data and manually repricing items is impossible, especially in a real-time situation. Repricing optimization is vital considering the number of times top e-commerce retailers like Amazon and Walmart reprice their products. Automation enables retailers to optimize their price throughout time. Because the market continually changes, then prices should also keep up with such changes. The period of fixed pricing is long gone, and repricing optimization is the future of e-commerce.
This system can help students those are interested of being an entrepreneur.