How 050media used the Repricer to set up a successful pricing strategy

The Channable Repricer makes advertising on marketplaces a success story

Bol.com is a major player in today's marketplace offering, and is top of mind for many people when it comes to online orders.

Consequently, this was an interesting channel to explore for Tooltopper, an online provider of more than 20,000 DIY articles, together with its marketing agency 050media.

There are 3 elements on which you can optimize to increase your chances of a buy-box display. These are your price, your delivery times and the shop's customer score. - 050 media

Since these variables change from time to time, for example when a new provider joins or when a competitor adjusts their prices, you need to dynamically adjust your offer to have the best chance.

The Channable Repricer allows you to do exactly that, while maintaining your margins.

Channable Repricer: What does it do?

The Repricer offers the possibility to dynamically adjust your product prices. Both upward and downward. This is very useful to be able to react in real time to the adjustments a competitor makes at that moment, and to gain an advantage that brings you into the buy-box. In this way, you can lower your product price to a level just below that of the competitor.

This can be done fully automated, so it requires little attention once you have the right rules in place. More often in the buy-box also means, as a rule, more sales!

A winning strategy

By scrutinizing Tooltopper's entire offering, 050media was able to gain insight into which parts of the offering were the most successful and therefore interesting to focus on within the marketplace. The minimum desired margin and the level of competition were important criteria.

During this exercise 050media found out that 40% of the supply was not correctly priced on the marketplace. This puts a lot of pressure on the margin.

The next steps were to determine the maximum price for an item, based on the optimal margin per product and to set rules that will generate maximum profit and at the same time provide security against unrealistic, counterproductive prices.

The Repricer can be cleverly used on the three elements mentioned earlier that, as you know by now, determine whether or not you are shown in the buy-box:

• Price: Always stay ahead of your competition by cutting just below the cheapest price of competing providers. Set a minimum for this, so you can never suffer losses! Suppose that there is no competition, then you can arrange that you show your maximum price!

• Customer score: If a competitor has a lower score on this element, you can set a rule that determines that you do not compete on price. Because of your higher customer score, the chance of a buy-box win is higher and there is less need to lower prices.

• Delivery time: Again, if a competitor offers less favorable delivery times compared to your shop, there is less need to compete on price. The rule that you set here ensures that you do not apply price reductions in this case.

Results

Within the test of our hypothesis, an increase of 5% on the margin was finally achieved. And no product was sold below the previously set minimum selling price.

As a result, the total sales value increased significantly and the pilot was a success!

Ready to optimize your marketplace pricing strategy like Tooltopper? Visit Channable's website to explore the Repricer tool and boost your sales today!