The competition, especially in the eCommerce industry, is becoming fierce year by year. In 2025 around 21% of the retail purchases will be made online or by 2027 this number is expected to rise to 22.6%.
Around 33% of the world’s population shops digitally, and the eCommerce industry, currently at $6.8 trillion, is expected to reach $8 trillion by 2027. For one type of product, many new competitors are emerging in the digital market. As an established seller, you must keep track of both new and old competitors’ pricing because that’s what attracts your target audience.
A good product always stands out, but if your pricing is higher than that of your competitors, then your traffic might be diverted to other sellers. That’s why we present to you the best strategies to monitor the competitor’s pricing without any hassles.
Strategies for Competitor Price Monitoring
To get the competitive edge to stay ahead, it is important to track what your competitors are doing, including at price tag they are selling the items. So, let’s understand how you can do that without much fuss:
1. Invest in the Competitor Price Monitoring Tool
A competitor price monitoring tool is a must-have in your arsenal because these tools provide you with real-time insights about the change in competitors’ pricing. For instance, Intelligence Node’s AI-powered price monitoring software tracks the prices with 99% accuracy and refreshes competitor data every 10 seconds.
Another perk of Intelligence Node’s software is that you can optimize your prices based on calculated smart price recommendations. The software considers different parameters, like demand, market trends, competitors’ prices, product availability, and price threshold to recommend prices that make the shopper happy and your profit margins protected.
2. Set Competitive Price But Do Not Jeopardize Your Profits
Being competitive doesn’t mean that you need to jeopardize your profit margins.
In this digital-driven world, you need to be smart and set your minimum and maximum prices on the basis of thorough cost analysis and competitor data. You should use the competitor’s pricing not to set your prices but to protect your profit margins. The data can be used to study the market range.
You can even use value-based pricing, where you can charge more (as compared to the competitor) by justifying the high cost. By highlighting features, you can help your product stand out from competitors, and shoppers can understand the price difference.
3. Track the Pricing During Peak Seasons
High-demand periods, like holidays, back-to-school season, festivals, and PRIME day, are seasons that create unique pricing strategies. The peak season affects both consumer and seller behavior.
You should track the competitor’s pricing to ensure that you are not pricing too high or too low, because both will lead unfavorable outcomes. Being too high means losing sales, and being too low means losing profits.
You can easily adjust your prices based on the supply, demand, and consumer behavior to get substantial sales along with profits.
4. Analyze the Historical Data
The numbers can tell you concrete information that no one could ever tell you. Analyzing the pricing trends can reveal patterns which can help to anticipate future market shifts. Intelligence Node’s price monitoring software allows you to revisit historical pricing data for the past two years, analyze the pricing trends, and track the competitors’ pricing movements to see what the turning point was that boosted their sales.
To achieve the desired agility, you can adopt a dynamic pricing structure where prices are dynamically adjusted based on market changes, demand, and competitor actions. Intelligence Node’s AI-driven dynamic pricing software can monitor competitors’ prices across platforms. You can review and optimize your prices with a refresh rate as quick as 10 seconds.
Building a Price Monitoring Framework
A price monitoring framework is the backbone of a competitive strategy. It means every market move is calculated and informed by real-time data.
1. Identify Your Competitors
First, you need to identify who your real competitors are. Instead of casting a wide net, focus on direct competitors who share the same customer base, product range, and pricing strategy. This means the insights you gather are relevant and actionable, leading to better decisions.
2. Narrow Down the Products You Need to Track
Not all products in your catalog need the same level of scrutiny. High-demand products, flagship products and high-margin categories need closer monitoring. By prioritizing these products, you can focus your efforts where pricing fluctuations will impact revenue and market share.
3. Automated Price Tracking Tools
Manual monitoring is no longer practical for established sellers at scale. Investing in automated price tracking tools will allow you to capture real-time pricing data across multiple channels and regions. These tools also give you historical trend analysis so you can anticipate competitor strategy and market shifts.
4. Set a Monitoring Frequency
The dynamics of your industry will dictate how often you need to monitor competitor prices. For fast-moving consumer goods, you may need to monitor daily or even hourly. For other industries, a weekly review may be enough. Finding the right balance means your team stays responsive without being overwhelmed by data.
5. Use the Data to Get Insights Decision-Making
Collecting data is only half the battle. This integration supports dynamic pricing, promotional planning and inventory management, aligning your operations to real-world market conditions.
Wrapping Up
Staying on top of what competitors charge is crucial for sellers who want to lead their markets. A smart, tech-savvy approach helps you spot changes, make informed decisions, and stay ahead without harming profits or your brand.
Boost your eCommerce infrastructure with Intelligence Node’s Digital Shelf platform, which includes a variety of tools to give you a competitive edge. Take advantage of real-time, smart insights made for the leaders of tomorrow.
