Top 6 Benefits of Implementing Amazon Price Tracking in Your Business
Top 6 Benefits of Implementing Amazon Price Tracking in Your Business
When running an Amazon business, tracking the competitor’s pricing is a smart move! If you want to excel your business in the eCommerce domain, tracking and maintaining price histories of similar products of your competitors, will help you optimise your own strategies to bag more sales and revenue.
The race to optimise the pricing strategies when running an Amazon store is to win that highly rewarding ‘Amazon Buy Box’ and to entice customers to buy from you over others. But remember, there is a very thin line between keeping your prices competitive and losing out on your profit margin.
So, implementing the right pricing strategy demands you to balance the profits and keep selling your products steadily. And that sums up the understanding of the importance of Amazon price tracker for your business.
But, there is more to it that the businesses must know about price tracking for their Amazon business, to be more convinced about integrating the practice. So, let’s take this article forward and give you a glimpse at some of the noteworthy benefits of this approach.
What Do You Understand by Amazon Pricing Tracking?
Amazon price tracking is a holistic method for monitoring the price trends of the competitor’s products and analysing their strategies to optimise your own. You can either do it manually or by using a dedicated performance measure tool. Tracking the prices manually is a time-intensive approach, which might lead you to lose out on trends.
On the other hand, using the automated tools will help you collect not just the pricing data of competitors but also keep a tab on the customers’ reviews, product representation, offers and availability of products across the competitor stores over Amazon marketplace. Such tools tend to send you alerts or notifications every time the product pricing of a competitor changes or a new offer is introduced.
Apart from that, you can also implement a live price monitoring feature to actively monitor the product rates. With this, the sellers will be able to predict the demand changes with respect to pricing and optimise their rates to align with the customer’s expectations.
What are the Benefits of Amazon Price Tracking for the Sellers?
To help you better understand the efficacies of Amazon pricing tracking tool for your eCommerce business over the marketplace, here are some benefits for you to count on:
1. Understanding the Market Competition
When you are readily using the price tracking software for your Amazon Seller business and crafting a unique pricing strategy, you are technically assessing your competitors’s strategies. As the key to winning the competition of an eCommerce business depends solely on the profit margins, attaining them requires you to assess the pricing strategy of the competitors.
If the pricing of your product is lower than what your competitors offer, you will have a stronger business than them. But at the same time, if you have compromised your profit margin for the sake of acquiring more sales over your customers, growing your Amazon business might be difficult.
Reducing your product prices to that of the competitors is a great way to lure more customers into buying your products over theirs, but such a move might affect your profit growth as well. Therefore, using Amazon price tracking solutions will enable you to get a clear view of the pricing trends of multiple competitors and decide on implementing the right optimisation strategies to earn more sales and balance the profits altogether.
2. Get Email Alerts on Price Drops
The next big thing that Amazon price tracking helps the sellers with is price drop alerts via email. It is the feature that enables you to be on top of your pricing strategy at all times. In case there are some new offers being proposed by your competitors, which have changed the price of their products, you will be notified about it immediately.
This way, you will have the scope to optimise your pricing strategies and put up offers to match that pricing or give something even better to the customers. And that shall drive the customers’ attention towards your products more than that of the competitors, giving you a leading edge to win more sales and revenue. When you get the price drop email, it signifies that your competitors have embarked on some pricing trend in the specific market and are tuning their offerings to meet consumer needs.
Irrespective of whether you are too good in the market with quality products, if you are a new Amazon Seller business owner or are a small eCommerce startup, you might lack familiarity with the sudden demand or market position changes. Therefore, adding an Amazon price tracking tool to your costing strategies will help you keep a tab on the market shifts in a more active manner. This way, you can take immediate action on updating your product prices over the marketplace and be ahead of the game.
3. A Chance to Be Called as the Lowest Cost Vendor
When you know your product is in immensely high demand, you can make an effort to be the lowest-cost vendor across Amazon. The potential customers might already be aware of what they intend to buy but might be looking out for some product listing that puts up the lowest pricing among all. So, you have the chance to get their attention by offering the lowest possible rates and enjoying the competitive benefit.
It would lead you to acquire more sales in the long run and earn profitable revenue to grow and scale your eCommerce business. In addition to that, lowering your prices for the products and gaining attention from the customers will increase your chance to get the ‘Amazon Buy Box’. It will improve your collective conversion rates and boost the overall sales count.
Irrespective of whether you are a startup business or are an established vendor over Amazon, you will get the right acceleration to grow stupendously, as your sales rate would support your intentions. With the ideal Amazon price tracking tool, you will be able to curate your pricing strategy in such a manner that your price tags for products remain lower than what others have to offer while still reaping profits for you.
4. Scope of Increasing Profits When No Competition is Around
When you are selling a demanding product that is new to the market and has less or no competition at all, you will be able to increase your profit margins stupendously. With the use of Amazon price tracking tool, you can be sure of whether any other seller is selling the same product or not. If you are sure of the fact that you are one among only a few sellers who are listing the same or similar product over Amazon, you can play around with your profit margins.
Implement the right pricing strategy on the products for which you are either the only seller or the most preferred seller. When the land is clear, you must make that approach to win more profits and sales. But, before you take another step into increasing your product prices, you must be aware of your competition in the field. And Amazon price tracking is just the right tool to help you be sure of that.
But remember, if you are using the price tracking tool and increasing your prices too high for the product, you will be making room for competitors to step in. And your monopoly with the product in this competition-less market might end soon! Not only that, but you will suddenly end up losing all your sales to your low-priced competitors. Therefore, be strategic with what price tag you consider, even for your monopoly products over Amazon. The right kind of analysis with the price tracking tool is of optimal importance!
5. Keep a Tab on the Pricing History
With the right Amazon price tracking tool, you will be getting real-time data analytics features to not just check the updates on price fluctuations of your competitors’ products but will have the liberty to see the pricing history. It means you will be able to understand how and where your strong competitors have or have changed their product rates in the past. Using it, you can compare your pricing history to see the opportunities you have missed in the past.
It is the perfect feature of the tool that helps you realise your missed opportunities and understand the price fluctuation pattern of the competitors to curate your own new strategies. Not only that, but you will also gain insight into how your pricing strategies have impacted your competitors and how their implementations have impacted your moves.
Use the pricing history collected from the tool and schedule your product rates for the entire calendar year. This would enable you to create a long-term selling strategy over Amazon by predicting the profits and growth of your business throughout the year.
6. Gain Access to Extensive Insights and Analysis
The purpose of implementing the Amazon price tracking tool is to optimise your product rates for profitability. But beyond that, you can also create timely reports with pricing details of your competitors, beyond just product level.
You will have access to extensive data and actionable insights on the pricing trends of your competitors, alongside detailed analysis of the products’ performance all over the marketplace. This way, you will be able to assess the demand of the product, and decide on some impactful marketing and pricing decisions to stay ahead of your competitors.
With an Amazon price tracking tool, you can expect to acquire some outstanding marketing intelligence. As the count of sellers is increasing immensely over Amazon, it becomes important for you to step up your pricing game to win more sales and revenue. So, integrating an automated Amazon price tracking tool is the ideal decision.
In this quest, Weavr, an all-around eCommerce analytics tool, brings to you a price tracking feature embedded within, which would help you compare prices of products, not just across Amazon but diverse other channels. This would enable you to thrive with your eCommerce product, not just across Amazon, but most other marketplaces that exist!