This sale season, online sellers are opting for dynamic pricing of their products. Sellers are opting to change the price of their product based on many factors such as demand. This is particularly true in the case of electronic items.
Pricing advice from analytics companies
Most online marketplaces are depending on the facts and figures that analytics companies are working out to decide their prices. These companies are continuously monitoring the demand and supply of products to set a value on them. In some cases, they advise marketplaces on a price change for every half an hour.
This strategy works on products with many sellers, like electronic goods, branded clothes, footwear, appliances etc. Online sellers are swearing by this method.
Anand Jadhav, president and co-founder of Yepme says, “The data we get on products across many brands and retailers is very rich and helps us reduce our margin of error on the product side.”
The verdict on marketplaces this festive season
In the meanwhile, most online marketplaces have put the lessons they learnt from last year’s sales to good use this year. Most of them have spread their sales across a few days as against a single day. Sunil Alagh, founder and chairman of SKA Advisors, a marketing consultancy firm, expresses his thoughts in an opinion piece. Alagh says that leading ecommerce players Snapdeal, Amazon and Flipkart have worked on their marketing, logistics, and promotion.
Flipkart snapped up a GMV of $ 300 million post this sale, a figure three times more than the sale last year. Ecommerce companies also had to contend with their offline counterparts. Alagh concludes with the thought that there was no clear winner or loser in the game, as shoppers opted to buy at their convenience without offering their loyalty to any single option.
Alagh gives a word of advice to online players. He says that three main factors will help online sellers: differentiated campaigns with more products, healthy competition and after sales service.
These sales are learning experiences for online sellers. Every stumbling block will serve as a step to improve their sales and eventually their profits.
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