When we discuss pricing software for eCommerce, we typically refer to the price techniques for eCommerce businesses that help e-companies to adopt the most effective price approaches vs. market conditions at that time. In this article, we’d like to zoom in on the general features of pricing software to take into account when selecting the right tool.
With eCommerce pricing actions becoming more competitive, technology has become a key component to evaluate them. Thanks to advanced machine learning algorithms, all kinds of online pricing activities can be constantly monitored, optimized, and analysed better. Using modern technology solutions, eCommerce companies can granularly suit their prices, with many added benefits such as maintaining profit margins. Moreover, it can also be a powerful tool for developing a long-term pricing strategy that leads to higher business revenues.
There are many different types of pricing software on the market. Among these, you can find those that monitor your own or competitor’s activity. However, in the case of Modvise, you can find numerous options and solutions that adapt themselves to your needs. It ensures that your control over business management remains simple and, above all, operative.
What are the things to be aware of when looking for pricing software? Overall, you should consider three factors that directly influence the pricing strategy implementation: product stock, distribution channels, and promotional activity. Your brand-new pricing software should include all of these variables as well. It’s just a matter of knowing which one meets your expectations.
Pricing Software – in and out of stock tracking
Correct pricing management needs data about online inventory to decide when and how much to compensate for adjusting a product’s price. Consequently, a pricing tool should also include this feature in its analysis options.
When it comes to eCommerce businesses with broad catalogues ranges (supermarkets like Frisco) or companies that offer consumer products in a lot of different versions such as a perfumery or drugstore, keeping track of the number of available units can be quite challenging.
This feature is absolutely essential to keep the warehouse stock list and product database updated. After you have done the price change actions based on the quantities of each reference in your catalogue, you will also be able to make adjusted forecasts of future income and revenue.
A unique opportunity of online commerce is that you can combine the interests of one or more businesses to achieve a common goal. As a result, online brands can create networks of distributors who will sell their products in exchange for a commission, profit margin, or agreement that suits them. Brands, however, should also consider additional features to track the performance of their image and reputation.
Using pricing software, you can estimate how many units each of your partners will sell and the number of units left in stock. Moreover, anticipating future orders will enable you to prepare the stock you need and prevent any interruptions in sales.
But the most exciting aspect of this feature is that your pricing tool allows you to monitor how much your distributors are charging for your products and services. If you choose your distribution channel as the object to be studied, you can either do this with a competition analysis or an online MSRP check. Sounds simple? It is simple!
Always measure the effectiveness of promotional efforts
Pricing is frequently a leading part of marketing strategies carried out by retailers and e-businesses, such as bundles or discounts. When it comes time to plan your eCommerce calendar, sales, promotional activities, and campaigns related to added benefits are essential.
We can define three factors that will make your campaign successful:
- Trading forecasts
- Dates on which they apply
- Price ranges
Is it possible to use pricing software for marketing purposes such as this? It is without a doubt. Take, for instance:
- Serving as data storage for your collection of data
- Providing the inventory relationship that we mentioned earlier
- Access to dates when price changes occur in the market or among competitors
- Evaluation of the reactions of customers based on sales performance measurements
This capacity for sampling will also help you evaluate the success of any action you decide to undertake, compare those actions over time, and establish the necessary patterns to optimize it.
As you see, pricing software can give you a much broader perspective on the different aspects of your business. By choosing such a tool, you will take advantage of all possible benefits of optimizing. To be sure the tool meets your expectations, pay attention to stock, distribution channels, promotional activity, as well as granularity and accuracy of data. These essential features will guide you in choosing the best pricing solution. Do you want to know more? Leave us a massage!