“The price is hot” – Identify competition and automatically find the right sales prices for JTL-Shop

Online retailers are artists. Price artists. Because finding the right sales price is an art. Correct pricing is important: the “right” product price can accelerate sales or increase margins. The “wrong” price, on the other hand, can leave you sitting on the goods or selling at a loss. Dynamic repricing can help you set the perfect sales price for your products.

Price fluctuations in online business

Prices are always on the move. Just like demand. Are you surprised that some prices are higher on Sundays than on other days? In Germany, people prefer to shop online on Sundays. That is also repricing. Some product groups fluctuate more than others. Electronic items, for example, are subject to strong price fluctuations. And in extreme examples, retailers even adjust their prices several times a day.

What is dynamic repricing?

Dynamic pricing is a pricing strategy in which your product prices are automatically adjusted based on predefined rules. For example, you can incorporate competition, timing and demand into your pricing. Or use a dynamic pricing strategy to ensure that your products are always one euro cheaper than those of your competitors. The minimum margin is still maintained in order to remain competitive and increase your sales.

We like to compare Dynamic Repricing with autonomous driving: You set the direction and rules and Dynamic Repricing adjusts the prices in your JTL-Shop fully automatically. Of course, you can intervene at any time – this is not only important in car traffic.

Hence the addition “dynamic”. Because what was the “right” price yesterday may be the “wrong” price tomorrow. Dynamic repricing regularly monitors the competition and reacts automatically to changes in the market. Instead of setting a static price once, your prices practically “swim” with the market.

Analysis comes before repricing

Repricing always starts with data: Which competitors do I have? What price do they offer? What advertising pressure do competitors generate? What is the market price? You can laboriously gather such data individually on the market or you can use a repricing provider. The advantages of hiring a service provider are obvious: not only do you save time, but you also benefit from the usually graphical presentation of a professional analysis, which allows you to see the pricing situation at a glance.

Dynamic repricing strategies

Automated repricing is of course only as good as the chosen pricing strategy. The focus here is on two questions which, in combination, make for successful repricing:

a) Which price point do I choose?
b) How often do I have to screen the competition?

There are different approaches: Some retailers aim to always offer the lowest price. Other retailers want to be among the top 3 in terms of price and others are satisfied with always being a little cheaper than the average. A good repricing tool shows you your competition at product level and gives you the choice of how much cheaper/more expensive you want to be.

1. You sell electronic goods and have many competitors. You don’t want to match every competitive price, but you want to keep sales high. Repricing, where you set your prices slightly higher than the cheapest retailer, combined with frequent competition checks, is a good idea here.
2. You sell garden accessories and have little to medium competition. Repricing with slightly more favorable conditions than the average price would be ideal here. Due to the low level of competition, a weekly competition analysis would be sufficient.

How does Dynamic Repricing from eMarketing work?

Our Dynamic Repricing calculates the sales price based on your repricing specifications and the competition data. The “new” prices are then automatically entered into your JTL-Shop via our plugin. For the price calculation, our tool also includes the sales prices of competitors on Google Shopping and Amazon, as well as the performance data of Google Ads products. Automated monitoring and optimization of price adjustments guarantee that your profit per item sold increases.

Unlike most repricing tools, our Dynamic Repricing offers you various strategies that can be selected for each item. Because – as described above – not every retailer pursues the goal of always repricing at the lowest price. With eMarketing, the focus is on the individual maximization of the profit to be achieved.

Special conditions for webinar participants

Good news: All webinar participants will receive a free repricing report for up to 150 products. So you too can quickly become the ultimate price artist in online business!