It can be hard for retailers to keep up with the ever-changing nature of the eCommerce industry, especially when it comes to pricing strategy. As repricing becomes more popular than ever, retailers have to react to price changes quickly, but carefully. To help with this, Wiser created an infographic, The Tortoise and the Hare: Why Price Optimization Matters in Retail.
In 2016, price optimization is a major key to success in online retail. Consumers still take pricing seriously; in fact, 56% will actually shop online in hopes of finding better prices. Price is also a major factor when it comes to building loyalty, as 75% of consumers in the US grew loyal to retailers based on how they were priced. So the big question is: how can retailers find the right price?
Price optimization is so much more than just changing your prices to keep up with competition. Yes, it's important to react as quickly as the hare, but you have to be smart and think long term like the tortoise. Hopping around from price to price without taking time to analyze results is almost worse than keeping your prices static.
To prevent this, retailers have to make calculated price changes and use price testing to fully understand the impact of each price change. You may think you have to undercut competitors and try to stay more competitive, but you'd be surprised. Sometimes retailers price above competitors and make more sales, but the only way you could know for sure is to take the time to measure the results.
To learn more about price optimization and why it's so important for retailers in 2016, check out Wiser's infographic below.
Contributing writer, Brian Smyth of Wiser.