Big data and pricing: how to find the best price for your products at all times

Big data is one of the most in-demand technologies today. The labour market has found itself dominated by the search for specialists in this kind of data. There’s no longer any self-respecting business development that doesn’t include some aspect of big data. Most of today’s business technologies depend on big data as a vital presence. Unsurprisingly, in eCommerce stores and online businesses, it wasn’t going to be any less important. In fact, big data has become a fundamental pillar in dynamic pricing, a trending strategy in the digital sector that allows businesses to always opt for the best sales ratio with an optimised price. But how do both of these ideas merge to achieve a successful strategy?

Approach the correct price using aggregate data

Dynamic pricing strategies have become the panacea for online pricing. This new technique allows brands and vendors to adjust their prices to the circumstances in the market at all times, whether due to competition, product demand, or for other circumstances such as sales campaigns, seasonal reasons, special dates, and so on.

The theory (and in this case, therefore, the practice) indicates that these new dynamic prices move according to the monitoring of the competition done by each eCommerce business, which can be of different types, as well as of user behaviour in response to each change. With each change and its guidelines, a tremendous amount of data is generated that an eCommerce manager must manage in order to be able to implement adequate and effective pricing. This is because poorly-treated data can lead to errors that are more catastrophic than the absence of data.

Techniques such as big data allow this task to be carried out in an automated and accurate manner. Thanks to aggregated data, it’s possible to project prices for each and every one of the products in an eCommerce business’s catalogue so as to opt for the highest profitability at all times. Until now, managing all this data manually or with only a single person in charge was practically impossible. Nevertheless, today, with the right tools such as dynamic pricing software, it’s more than possible to carry out a dynamic pricing strategy in an orderly, secure, and conscious manner.

Beat the competition while maintaining the best margins

If the actions within a pricing strategy were to be characterised in any way, it would be the need to adjust them to the objective results of each eCommerce business. This means that it’s not always enough to match the competition in order to excel, but rather it’s necessary to take many other variables into account in order to maintain the business’s profit margins.

Not all price adjustment systems take the objective needs of the business into account. Let’s say that you only care about price matching to, supposedly, beat your competitor in sales. However, it’s essential to keep the idiosyncrasies of online stores in mind in order to understand and advance their potential.

For this, we all know that it’s necessary to measure the sales targets, the impact volume, and potential users, among other things. This does nothing more than add more variables to the definition of the pricing strategy. Thanks to big data, in this case, it’s possible to configure all of the necessary parameters around these factors, allowing each one to intervene to the extent necessary to adopt the optimised selling price.

A good price tracking tool must implement big data techniques precisely to show each eCommerce business the best option for the price in each case, uniquely for each item in its catalogue. In the case of Minderest, the readjustment algorithm works using all of the data collected and in function of the parameters established by the eCommerce business itself, sets limits that can’t be exceeded in order to protect the interests and the profit margins of each store. This is a basic value for achieving success in your global strategy.

An enormous amount of data; many decisions to make

The main problem that online businesses are faced with is collecting data and its subsequent management. At the beginning of this article, we commented that, unlike with traditional commerce, the digital paradigm has opened so many doors that it’s practically impossible to manually track catalogues or prices and, much less, have a thorough report of their fluctuations.

All of these techniques, such as big data, are precisely what’s needed to make more informed decisions, simplifying the entire process of data access and analysis, returning precisely the desired metrics for each business in both relevance and need. Without this holistic vision, it’d be practically impossible to make the correct decision regarding individual prices or the company’s global strategy.

In short, big data, in this case, is still a technical resource that favours the management of certain procedures. It’s a tool that acts as a lever to allow online businesses to be well informed, make the best decisions, and, of course, to continue along the path towards achieving the greatest profit at all times.

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