Automatic management of allegro prices – case study
NOTE! In relation to confidentiality undertakings we don’t provide in this article specific data of allegro accounts and other data that could enable seller’s identification.
The case that we describe here considers a seller, who sells different kinds of computer hardware such as: components of a computer, routers, printers and so on.
About the customer:
- The customer monitors about 4000 products (he puts for sale >10000)
- Sales > 5 items per month – about 200 products
Practical conclusions after 5 months of using Price-expert:
- Raising the price when your competition doesn’t have products or their variants – it has been established that when the product doesn’t have competitive products with specified account parameters the price can be raised, without decreasing the number of sales, by 2-5 % depending on product group. It means that some offers can be ignored, because in relation to many features, for example: poor description, lack of invoice, small number of sales, the customer won’t choose this offer despite lower price.
- Automatic setting prices of price leader – for specified list of sellers. In some categories to have products sold one should have been a price leader, but similarly like in a point mentioned above not for all categories. In most cases one should be cheaper than sales leaders. Quick reaction to price changes at competition, influences sales stability meaningly.
- There isn’t a simple algorithm of setting optimal price (the highest profit from sales), its level will depend on category, competition and many other factors. The best strategy is to test different pricing strategies and choose the optimal one.
- You can sometimes raise the price without consequence:) Raising the price for about 500 products didn’t cause drop in sales, what raised profit significantly.
How Price-expert helped the customer:
- Automatic indication of those products, which your competition sells more –preliminary analysis concerning price and special offers
- Automatic indication of price changes depending on product availability and price changes at your competition – according to defined pricing rules
- Quick reaction to price changes and availability – analysis of trends
- Price testing
The effects of implementation:
- The number of people managing allegro offer has been decreased (thanks to automation of some processes)
- The profit from sales has been raised by 12 %
CEO at Price-expert.net. Has many years of experience in managing IT projects and automating the price management process in e-commerce.