Online shopping and selling online are very popular in today’s world. Customers shop online because many of them believe that they are getting a good bargain. However, price wars and undercutting other sellers is not the solution to winning at this game and increase sales. No doubt, customers look for a bargain price but the long term solution for a seller is not to enter into a price war with other sellers so that they can sell more. This only leads to the creation of a weaker market.
The entire eCommerce scenario is governed by discounts and coupons. Price-competition is high amongst sellers; the battlefield is warming up with offers of next day delivery, rock bottom prices, buy two for the price of one and even discount coupon codes or free shipping. Festival sales further seem to be an extended affair and all this is to the advantage of the customer. There are also certain tricks of the trade that aid in lowering prices as browser plug-ins. The question here is~ are eCommerce price wars the answer to making bigger sales?
Lowering prices drastically only encourages the bargain hunter and not the shopper who is looking for quality. In this brand loyalty will neither be there nor can be expected. With the encouragement of reviews, it is to be noted that even the bargain–only shopper is writing reviews and searches are revealing the lowest price across segments. This is detrimental to the business of big brands because tech add-ons are comparing and contrasting the available outlets for the customer to make it even easier. So most bargain hunters; are flocking to websites with the lowest price. This does not create a healthy market.
Optimizing the pricing of your products based on competitor analysis cannot be stressed enough. This is where Eunimart’s advanced technology platform with deep tech Artificial Intelligence helps by suggesting optimal price through market research and analysis of similar products provides actionable business intelligence so that Sellers can take quick decisions. Eunimart makes it easy to control and manage every aspect of selling across all channels of sales through automation and intuitive AI on a single platform.
In the absence of real-time market research and knowledge, it becomes a situation where you keep wondering – to do or not to do ~ to lower your price or not to?
Let us check out some important Dos and Don’ts:
Possible negatives of Price-Wars:
Price wars are inevitable in any business, but what is the biggest mistake of eCommerce?Price wars again!
Every intelligent retailer will avoid a price war because it can never be to his advantage in the long run. Competition is ultra-strong in the ecommerce sector and the pressure to perform well is high. But you are all set to create a niche for yourself if you avoid the fundamental mistakes mentioned earlier and realize what works well for you. You should also try out deep tech platforms like Eunimart which simplifies and automates the business processes so you can focus on sales. After all, the biggest mistake of ecommerce is the price war. Avoid it at all costs.
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