Increase Your Dropshipping Profits in 2019 with Competitor Stock Tracking
Dropshippers often find themselves ordering from the same suppliers and selling the same products.
Competing with retailers selling the same products means your customers will often base their buying decisions on the best price, but constantly trying to provide the lowest price typically lowers your profit margins as well.
How can merchants optimize their profit margins?
One way retailers have been doing this is with price tracking & stock tracking. Stock tracking is when a competitor runs out of stock, and you in turn raise the price on that product. When shoppers see products being sold out on other sites, it can result in an increase of demand. This is also known as a scarcity tactic.
For centuries this has been a common practice, it’s nothing new. Back in the day, a business would send someone impersonating a customer to take notes on the competitors stock and prices. But this surely wouldn't work with eCommerce giants like Amazon , Walmart , Target , Wayfair , etc,Many of these eCommerce giants are known to use competitor price and stock tracking to succeed!
"Scarcity creates urgency, urgency creates demand"
Like price tracking, stock tracking is often a long and tedious process for so many merchants, as so often there are many competitors with products coming in and out of stock, so the window for using the scarcity tactic in this way is brief - but recurring.
That is why dropshippers often prefer to automate the tedious and repetitive process of competitor price tracking. In combination with automated price strategies, stock tracking can revolutionize your business.
You can choose from a variety of pricing customization options that are offered through PriceMole.
(for example, match my cheapest competitor without going below my cost plus 5%).
On the other hand, when your competitor is temporarily out of the game you can take advantage of this opportunity when you are receiving real-time updates on stock availability.
PriceMole users using automated price tracking and stock tracking have seen great success. Based on our case studies, the average user saw an increase of 3%-8% boost usind stock tracking, and a 7%-22% boost in profits using automated price tracking.
In summary, when your competitors are open for business you can use competitor price tracking to match their pricing tactics with your own automated pricing strategies, and the moment they go out of stock you will be informed so that you can increase your prices. This will:
- Not turn your shoppers away because of increased demand.
- Allow you to maximize profits with raised prices with smart price strategies.
- Help you identify your competitors most successful products.
So next time you see a lineup outside an Apple store for the release of the latest Iphone or flight tickets for last minute flights, take note of how the price is almost always raised for those frantic consumers, because retailers know demade raises a shoppers perception of value, and so they will be willing to pay a higher price, which means greater profit margins for retailers.
Are you taking advantage of scarcity with your business?
Competitor price tracking and stock tracking is one of the first steps to staying competitive. Many companies still choose to track prices manually but automation is the key to winning the game. Take a look at this simple timeline:
- 45 seconds - to find ONE of your competitors matching products
- + 20 seconds - to compare their price or stock availability to yours
- + 35 seconds - to update and save your new price
- 1.40 minutes to update 1 product
But your catalog has 2500 products… so 1.40 x 2500 products = 2.5 days
Automated price tracking and stock tracking, is where a system checks your competitors prices and stock multiple times a day and keeps you informed. PriceMole also goes further and automates repricing and updating your stock status for you with a customized automated price strategy, thus saving you countless hours or even days.
But it can be difficult to enter the automated price tracking game.
How do you get all of the competitor product URLs from ALL your competitors matching your own products?
At PriceMole, we take various approaches to solving this issue and making it easier to start competitor price tracking:
- Track URLs manually, be it one by one or by upload. If you already have all this data, no reason to waste it!
- Automated Matching: Using your product name, SKU and Image, we find competitors with the same products for you.
- Our Discovery Service. At PriceMole we have a dedicated team of data entry specialists who will match each of your products with the competitors of your choice. Real people finding real and correct data, that you can use to track.
Change your prices automatically with PriceMole no human interaction required, saving you time and costs. Repricing is now intelligent and not emotional based on the rules you can create, connected with your store on Shopify , BigCommerce or any store using our API Access .