What is a price monitoring tool, and how to choose the best one
If you run an online store, you surely understand how important it is to have optimized prices for your products. On the one hand, they have to be attractive to your customers. On the other – profitable to you. How can you achieve that? A good place to start is thorough market research. When you know what prices offer your competitors, you can adjust yours accordingly. And that’s why you need a price monitoring tool. How do such tools work? And how can you pick the best option for your store? That’s what we’re going to talk about today.
A well-thought-out pricing strategy is a prerequisite for every successful online store. Don’t be misled, though; an online store’s price optimization is not just a fancy term for making them as low as possible. With a decent price monitoring tool, you can discern which products should have lower prices, but also which prices are worth increasing (e.g., because it won’t damage your position in the market). As a result, you achieve something seemingly impossible – prices attractive to both parties.
Of course, you can conduct such research manually by visiting marketplaces and competitors’ stores, looking for both lower and higher prices. However, such an approach is time-consuming and ineffective. For starters, you won’t be able to visit all your competitors and all the product listings available online. That would take months! And secondly, many of your competitors are already using tools that optimize prices. Therefore, it is likely tomorrow these prices will be different.
Nowadays, with the e-commerce market growing so rapidly, automating this task is the only reasonable thing to do. And that’s what price monitoring tools are for. With them, you:
- Save time
- Increase profits
- Can quickly respond to market changes
- Get insight into your competitors’ pricing strategies
- Have the opportunity to negotiate better prices with your suppliers
The only thing you have to do now is select the best tool that will suit your needs. Which tool should you choose? There are quite a lot of them out there; that’s why we compare four of them in this article.
Four pricing tools
Dealavo is a comprehensive pricing software used by both e-commerce companies and manufacturers. It offers price monitoring but also an advanced Dynamic Pricing platform that uses AI to maintain prices in your store at the most profitable level (according to predefined rules set by you). As a result, you don’t have to worry about changing prices – Dealavo’s algorithms can do that for you 100% automatically. Price automation allows you to adjust the offer to the market situation, thanks to which it is possible to increase sales while ensuring an appropriate level of margin.
Moreover, in the Smart Prices option, Dealavo uses the double-verification process that enables providing price and competitor data of the highest quality: 75% of mappings is done by high-end machine learning algorithms, followed by manual verification and completion done by the Quality Assurance Team. Dealavo operates in many markets, they monitor product availability and send email alerts about important market changes. Additionally, users have access to historical charts and API-based integration for free.
Disivo offer revolves around three major pricing strategies: Cost-plus pricing, competitor-based pricing, and value-based pricing. Their competitor-based model offers competitors’ price monitoring and evaluation, monitoring of minimum margins, and strategies focused on increasing margins. Disivo also provides a fully automated pricing tool.
The integration is quick and simple. Disivo only needs your product feed and Google Analytics data to monitor prices. They support custom data types and offer nine additional tools to help you in your everyday work.
This tool operates primarily based on a digital robot that monitors prices and changes them in your store accordingly. What’s especially important, PriceMiner has limited availability. The authors of this tool claim they don’t want to provide the same service for two competitors, so once you’re in, no one else will be able to track your products. Products are monitored according to a specified interval (e.g., 1,000 products, five times a day). There are three pricing packages. The service is available only in the Czech language.
Pricing Fox is an app focused on automatic revaluation of product prices. It will help you monitor prices and, at the same time, change them according to actions taken by your competitors so that your offer is as good as possible. Their pricing tool works on the basis of the criteria that are applicable for you and your e-shop.
The pricing rules available at Pricing Fox have various setting options – from more expensive variants, through rounding, to working with so-called “Baťa” prices. In addition, in the interface, you will learn detailed information about the development of prices and the project, which can help you monitor the competition. Of course, you can then easily export all available data. Currently, the integration is available only through the Mergado store.
Now that you know what these tools are all about, let’s compare their features.
|Price per month
|Monitoring in other countries
|Websites to monitor
|Counter Price package: price comparison websites and marketplaces.
Smart Prices package: any website
|Chosen by the client
|Basic Plan: 3 websites/comparison engines
Standard Plan: 5 websites/comparison engines
Custom Plan: individual setup
|Automatic price changes
All you have to do now is compare available options and pick the tool that meets your expectations. With such help, you will be able to optimize prices in your store in no time and get ahead of your competition.