Significance Of Tracking The Competitors

The present eCommerce environment has become very competitive as new players are entering the market all the time. You need to find a way out to keep an eye on their activities. It is extremely important to be aware of your competitors to see if they are outperforming you. If yes, then you need to understand the underlying reason. Furthermore, you need to assess all your operations to stay ahead of your competition.

Earlier, businesses used to track competitor pricing manually with Excel. Now, that was possible because there were only a few companies that you needed to watch out for. And it is not pragmatic to do the same now. Also, manual tracking comes with the risk of errors, biases and mistakes.

In a highly competitive market, manual price tracking is almost impossible and not suggested. Thus, automation is the key which can be achieved with competitor price tracking software. It can be said that price monitoring is a sophisticated way of spying on your competitors. Your competitors might also be spying on you. It is not wrong to steal their secrets but learning their strategy can be helpful in understanding their mindset towards a particular eCommerce platform. And when we say that you monitor them doesn’t mean that you should follow their pricing strategy.

For instance, if you sell $20 socks and your competitor sells them at $18 then it is not necessary to drop the price. But it is significant to communicate your price with your customers by showing them the value you are selling. It can be better quality, free deliveries or anything that is not tangible. This helps you build a brand perception in the minds of your consumers.

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