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Monitoring competitor prices by web scraping

29 Jan Posted in Tech

At present, the online marketplace is quite dynamic, which means that retailers have to make considerable efforts to expand their customer base. Retailers, but more importantly, e-commerce businesses should urgently make decisions relating to pricing because this is the optimal solution for getting the most of customers. However, it is important to be aware of current shifts in pricing to prevent losses. Overpricing products only leads to driving customers away and not to making more sales. On the other hand, selling products at a too cheaper price will result in obtaining a narrower margin than the market permits. The point is that monitoring competitor prices is an option every retailer should consider. In order to know if the prices are low or high, retailers have to contact screen scrapers.

Monitoring competitor prices by web scraping

Why monitoring competitor price is vital

Taking into consideration that the e-commerce industry is highly competitive, it is necessary for retailers to understand the position of their product on the market. One of the biggest challenge that retailers have to face is price monitoring. Price monitoring provides reliable data for retailers, information that is useful for making decisions and implicitly influencing the success of their online stores. Monitoring the competition is practically the only way to know what is going on in the industry and not miss out on important opportunities. Fortunately, retailers can make use of web scraping and collect data that will help them make effective business decisions. The insight that a company is provided includes details about pricing across geographies and stock availability.

Creating successful pricing systems

The fact is that customers buy online products based exclusively on price, which means that the price of a product is actually the major determinant on how the brand does online. As mentioned previously, selling an item at an expensive price will not boost sales owing to the fact that the customer will find many other online stores that offer cheaper ones. If the prices are too cheap, then what happens is that consumers will naturally assume that the products offered are of low quality. The bottom line is that there has to be a balance. In other words, e-commerce businesses should be able to provide their customers quality products at fair rates, which is not possible if there is no knowledge on what the competition is doing.

Boosting sales

Online stores that fail to reach a certain level will most likely create a pricing strategy that works. The good news is that web scraping provides companies with tangible information about a specific brand. For instance, data mining allows a company to view the number of products that the competition is offering and of course the diversity. How can this be helpful? Well, knowing that the competitor offers a larger range of products will actually encourage businesses to do the same. The result will be customer satisfaction and more importantly increased sales. Even if a company offers the lowest price, this is not a guarantee that customers will make a purchase. What mainly distinguishes a business is the model.