Business owners must be aware by now that Google monitors prices using a price comparing engine. Google Shopping Monitoring is the one engine that digital business people must learn to work with.
Google is possibly the most used search engine around the world. This makes Google Shopping an engine to reckon with. Aside from people looking for information, shoppers also use Google to search for the products they need to buy.
Why Does Google Audit Price Changes?
When you type in the name of the product in the search bar, Google gives you results from its platform. The system uses other Google services such as advertisement features known as Google Ads. Therefore, the top results will be products belonging to brands that use Google services.
In most cases, the price of the product will determine whether or not a purchase is made. Your pricing strategy includes being positioned within this comparison engine. Hence, it plays a role in pricing your online shop.
Sellers should set price monitoring in Google Shopping with a pricing tool. The importance of pricing in ecommerce cannot be stressed enough. Google Price Monitoring is a tool for making the user’s online shopping experience better.
Therefore, while the product must be decent, pricing takes precedence. If your product is badly priced, you may be shunned by Google users. This could lead to fewer hits on your site.
Pricing Strategies
There is a variety of pricing strategies that online business owners can use. These include:
- Cost-oriented pricing: The seller considers the cost of the unit plus the targeted profit margin. The result is the price of the product.
- Market-oriented pricing: The seller monitors the market and competitor prices in order to accurately predict and react.
- Consumer-oriented pricing: A little research is important here as the seller must figure out what the consumer is prepared to pay.
- Vendor pricing: This one involves pricing the product using the manufacturer’s suggested retail price.
These strategies should guide you to price your product competitively. There are a few tricks of the trade that every astute business owner is aware of. These include:
- Charm pricing
- Prestige pricing
- Anchor pricing
Charm pricing involves ending the price in the numbers 5, 7 and 9; the odd numbers. This works by tricking the consumer to conclude that the product is cheaper and they will be inclined to buy it over your competitors’ product.
With prestige pricing, the product’s price is hitched slightly higher than the competitor’s. These tricks send a subtle message to the consumer and could help to boost your sales. This is also referred to as psychological pricing.
Pricing impacts directly on your sales. If you price your product too high, customers will shun you. On the other hand, too low a price will leave you floundering. Most online shoppers compare prices before they finally make a purchase.
Online sellers must, therefore, do their homework to ensure their pricing is competitive. In order to direct traffic to your website, you must provide a fairly priced quality product.
