Dynamic Pricing – A Profitable Alternative To Pricing Wars

Dynamic Pricing – A Profitable Alternative To Pricing Wars

In the battle for eCommerce clicks and sales, dynamic pricing can help online businesses stay profitable, relevant, and on top of the competition. Searching for the best prices is a part of a consumer’s due diligence, whether buying groceries at a wet market in Singapore or purchasing a television set in Shanghai. But when a consumer can visit multiple stores with just a few clicks of the mouse, price comparison has become an entrenched ritual in the online shopping experience. But eCommerce retailers need not start a pricing war to hook fast-fingered online shoppers to the checkout page. Knowing what your competitors are offering helps you chart your own, better path against theirs, and in this, dynamic pricing is a worthy strategy. Knowledge Is Power And Profits Dynamic pricing simply means adjusting prices in accordance to market demand and supply in real time. It may sound elementary; after all, who hasn’t compared prices with other shops on the same street? But what dynamic pricing promises over static prices and manual monitoring of competitors, is increased market sensitivity and knowledge — which can help eCommerce retailers make better pricing decisions towards their business goals. This sensitivity is premised on using competitive intelligence software to collate and crunch large masses of critical data, including prices of a product across the market, price fluctuations and the amount of stock your competitors hold. This produces recommended prices that are lower than your competitors’, yet also advantageous to both the consumer and your business. The end result is a mark of success for dynamic pricing. Take for example, Amazon — perhaps the largest and...
The Art of Reliability: Establishing Trust in Asia Pacific eCommerce

The Art of Reliability: Establishing Trust in Asia Pacific eCommerce

In the world of online retail, authenticity and trust are key to converting browsers into buyers. There is a perception that Asia’s shoppers are drawn to online retailers for the promise of a great deal. After all, eCommerce does away with expensive overhead costs associated with maintaining a brick-and-mortar storefront, meaning competitive prices online for the same goods. However, many Asian consumers feel that eCommerce lacks reliability. While domestic deliveries in urban centres can usually offer accurate shipment tracking and delivery on time, online retailers often struggle to provide a trustworthy logistics solution that will instil confidence in buyers overseas or in remote locations.[1] Furthermore, the proliferation of counterfeit branded products, which are advertised as genuine by online retailers, has become a problem for Asian consumers. These shoppers are growing increasingly likely to choose online purchasing channels based on authenticity and trust, even if it means paying a higher price.[2] The challenge in Asia Pacific eCommerce, then, is twofold: to earn consumers’ trust and deliver authentic goods at the right time to the specified destination. For online retailers who can get this right the potential upside is very attractive: A slice of the global B2C eCommerce pie, which is projected to top US$4 trillion by 2020.[3] Deliver Reliability Online retailers can build trust with a seamless and reliable order fulfilment practice, which will also serve to make shipping attractive to overseas customers, customers in remote locations domestically and customers who require flexible delivery options because of their busy metropolitan lifestyles. B2C eCommerce retailers should offer consumers the convenience of multiple shipping speeds and pricing options. They can also partner...