The competitive global Ecommerce market remains a staunch reality for online sellers worldwide. Considering the back-to-back emergence of a number of international online marketplaces, it is not a critical task to assess the cross-border competition that lies therein. The competition becomes even more cut-throat with a large number of SMEs stepping into this maze with the already existing large-scale companies or brands. The competition does not simply involve putting up a selective range of the best products but also working on getting consumer attention for successful conversions. Though global online shopping behaviour depends on a number of factors that might not be in control of the online sellers, pricing of products definitely is.
Why is Pricing Essential for Global Ecommerce?
Pricing is one of the most important aspects to be considered by online sellers in order to stand out successful in global Ecommerce scene. This is so because while a seller cannot take charge of consumer tastes or product characteristics, he or she can definitely have full power over product pricing; it is one of the main decision-making factors for online shoppers to purchase something. According to a survey conducted by Price Waterhouse Cooper (PWC), most online consumers visit different international online marketplaces for the following three price-related reasons:
- For comparing prices (61%)
- For finding discount coupons (41%)
- For participating in marketplace promotions (23%)
This quantitative analysis makes it clear that with easy accessibility to a large number of international online marketplaces, online shoppers can track the best deals and make a purchase accordingly. As such, pricing is the most effective way to improvise overall conversion rates for online businesses.
What is Competitive Pricing? Why Opt for it?
The tendency of global online sellers to use taglines like ‘best price’ (for powerful marketing) while selling products on international online marketplaces requires a constant evaluation of their own price offerings against price offerings by closest competitors. This is where the concept of ‘Competitive Pricing’ comes into play. Competitive pricing is fixing the price of a product based on the prices competitors are charging; this pricing strategy is used when a particular product has reached a level of equilibrium on a respective marketplace after being present for a long time and having many alternate products on the marketplace. In order to derive the most accurate results for competitive pricing of products, online sellers need assistance from international Ecommerce enablers like Eunimart for identifying answers to a few key questions:
- Who are the closest competitors?
- What are the most notable products to be put for sale and which competitor products are in direct competition with them?
- What are the price offerings of those competitor products?
- What will be the final price offering?
For the purpose of competitive pricing of products, it is not merely enough to possess an overall idea of the prices charged by competitors for such products. It is equally important to have a strong knowledge of the trends in which product prices have been raised and lowered by them. This helps in accurately analysing the current marketplace position of an online business and the performance of its products in terms of pricing.
Competitive pricing, as such, is much more than just monitoring the product prices of competitors. Monitoring and adapting to prices of competitors may undoubtedly help in lifting the profit margins but it is not a cake-walk. Proper planning and execution for competitive pricing require expert guidance from able international Ecommerce aggregators like Eunimart.