If the retailer wants to get profit, he must make the prices lower in order to attract the customers because the customers are eager to buy the products if they are cheap. Thus, some retailers are ready to match the price or to provide a discount if the customers find the same product that is cheaper. Price matching is a strategy when a retail outlet agrees to sell the product for the same price the customer would buy it in another online shop.
It is quite a widespread approach, especially for the giants of eCommerce. There are a lot of price matching offers from Amazon and other big stores. Different stores have different practices of price matching. In some cases the buyer should just tell the owner that in another store the product X is cheaper, the proof may not be provided, but long standing relations with the price matching store are necessary.
For small stores this strategy can be unprofitable because it may cause big losses. If less inventory is ordered, small shops usually must pay a higher price, in comparison with bigger companies ordering more inventory. For small internet stores, it is more profitable to offer price matching according to the owner’s discretion.
Most stores require the proof that the product X is cheaper somewhere, For example, advertisements can be regarded as such proof. In most stores, price matching can not be done according to the buyer’s words only, without any documents.
Price matching in eCommerce is used when the products are identical: the type, make, and model are the same. For example, if the release year is different, price matching is not made. Such rules are applied to all products, including such goods as cars.
For some customers, price matching is really beneficial, but others don’t like it because it is difficult to search for cheaper prices. However, most people are ready to make such efforts in order to save money.
Today, information is money. By comparing their goods with similar products on the market - in price, quality, assortment, and availability
- sellers enrich their own knowledge about the product.
This data can and should be monetized: it allows retailers to improve their assortment or service, set an attractive price, or increase the margin by playing on competitors' deficits. Price matching provides actionable insights.
To get information for comparison, sellers run monitoring of competitor products. It can be done manually, but, considering a huge amount of products in their assortment, many retailers resolve to product matching and price monitoring solutions. They can save a lot of time for sales departments.