The importance of the internet is widely known to every retailer and brand worldwide. Various brick-and-mortar businesses are joining the online league to generate more profits. Of course, you need effective marketing plans to stand ahead of the increased competition, making it even more fierce.
This is why having a user-friendly experience is of utmost importance to overcome the existing roadblocks. Quite evidently, a great eCommerce site provides a seamless user experience. Simultaneously, it should provide its retail partners with a lot of support.
However, many eCommerce platforms cannot offer such benefits to their retail partners, which often frustrates their retail partners. By doing so, they are missing out on an opportunity to boost their sales across the board.
But what’s bothering retailers?
- Selling below MSRP in the name of discounts, coupons, and offers.
- Not coordinating promotions with retailers
- Not offering better deals.
- Not providing enough marketing support.
- Not supporting retail partners to generate enough profits.
This is where Buyr.com is transforming the bottom-line online shopping for retailers and brands. How? Keep reading, and you will find out!
How is Buyr helping retailers?
Buyr.com is one of the unique online eCommerce marketplaces, giving consumers the ultimate shopping experience. However, with the pandemic making it almost impossible for everyone to go with the traditional strategies, consumers are forced to search endlessly to find the best deals.
At the same time, retailers are leaving money on the table because of poor pricing, strategy, and execution. Also, brands have a hard time retaining their brand equity. Since no one is trying to understand the plight of customers and retailers simultaneously, Buyr flipped the entire retail equation.
What are they doing right?
They capture consumer demand, eliminate efficient retailer pricing and protect brand value like no one else. But how are they doing this? They are doing it through:
- Simplified product listings,
- Dynamic pricing input,
- Algorithm matching
They are creating an addictive shopping experience. Consequently, it provides brands and retailers tools to set up dynamic pricing models to maximize inventory value. Their real-time price feedback enables them to aggregate consumer attention and aggregate consumer purchasing power in real-time.
With Buyr, retailers can finally capture consumer demand across the entire spectrum of consumer purchasing price points and ensure they maximize sales while maintaining a desirable margin.
But how is the dynamic pricing model instrumental in sales growth and generating profitable revenue? Let’s understand more about it.
Dynamic pricing decoded
It is one of the most compelling strategies that help businesses run their online stores profitably without losing to their competition. In simple words, it’s about changing the final prices depending on the KPIs. Depending on its application in different markets, many also refer it to as demand pricing dynamic markdown or time-based pricing.
It automates price adjustments after driving data from the personalized information shared by each retailer. Other factors like demand changes, inventory, and competitive data also play a role in quoting the right price for the product.
Did you know that retailers sell about one-fifth of their products at meager prices to remain competitive? But this strategy often makes them lose profit margins significantly. Dynamic pricing models help retailers overcome such roadblocks. Ideally, a dynamic pricing model comes with five different modules running in parallel to find the best price for the product with better profit margins. Let’s understand them one by one.
- Long-tail module: It enables retailers to set the introductory price through intelligent price matching.
- Elasticity module: It takes help from big data and time-series methods to check the demand around the product’s pricing. It includes various factors like seasonality, cannibalization, and competitive prices.
- KVI module: It is about how a product impacts consumer price perception. This will help you detect changes and price your product depending on consumers’ KVIs.
- Competitive-response module: It is about adjusting prices based on real-time competitors’ pricing.
- Omnichannel module: It gives you the best pricing using retailers’ offline and online channels.
Image credit: McKinsey&Company
Developing a world-class pricing model requires a thorough understanding of the consumer and the brand’s context and objectives. That’s how Buyr.com is helping retailers determine the accuracy of this model and helping them be flexible enough to customize their objectives.
Are you still wondering if it will be beneficial for your business? Read on to know more!
Benefits of using this pricing strategy
While the first advantage that will come to everyone’s mind is increasing profit margins, there are other benefits if you connect with the marketplace using dynamic pricing like Buyr.com.
It will help you create demand which will eventually help you boost sales. Since you are pricing it right at the right time, it will allow you to keep the freshness of stock and the availability in the right way. If you handle all the stocking manually, you can’t achieve this. With the suitable dynamic markdown algorithm, you can control the sales of the product at the correct pricing.
If you want to implement dynamic pricing, you need to collect data. And if you can do it correctly, you can achieve the following benefits.
- Increases sales
- Keeps you competitive
- Understand more about your customers
- Helps you manage your inventory
- Allows pricing to reflect demand
How can retailers maximize their profits?
The digital landscape is pretty tough, despite the convenience. The bigger players have all the technological benefits, which often squeezes the smaller players out of the eCommerce game. Fortunately, you don’t have to lose to the bigger players since the solutions exist for you as well. Dynamic pricing is one such advantage that helps businesses survive and even thrive.
As per a market research firm, this market will increase by 55% between 2019-2024. It will soon be a $22.4B market. Another company conducted a global survey revealed that more than 80% of management believe that they need to make better pricing decisions.
Dynamic pricing is, in fact, the best tool to increase your profit margins. In fact, a 1% increase in price can result in a 10% improvement in the profits with around 10% profit margins. How is that possible? It’s because this pricing model helps you keep SKU level prices, respond to price changes and demand fluctuations, and have a more positive impact on revenue.
If you think dynamic pricing is new. You are wrong. It’s been there for so long. Businesses are using it to grab the customer’s attention, and it has already proved its worth. For instance, the concept of “happy hours” is the best way to attract customers, especially when they aren’t expecting it all. It helps to increase sales, and this enables them to earn profits.
The online shopping marketplace, Buyr.com, is leveraging a similar tactic to make profits. They are helping retailers control prices depending on demand.
Let’s not forget that with increased competition and pressure around margins, retailers cannot achieve their targets unless they slash their prices. However, pricing technology will be a win-win solution for retailers and consumers.
Covid-19 is also putting a lot of pressure on retailers nowadays. With Buyr.com, you can navigate these challenges and earn profits with their dynamic pricing strategies. If you haven’t tried it yet, look at their website and see how it works to understand their business model better.