At first glance, doing all the calculations using the above-mentioned formulas is an easy task. However, you should be prepared to run into some issues.
The major problem that you might face is data accuracy. Some companies make a mistake by getting information on marketplaces instead of from rival websites directly – these numbers may differ significantly.
Other eCommerce businesses use their own parsers or obtain pricing information manually. But since our concentration lasts up to a few hours, the risk of human error is pretty high. Irrelevant data can lead to wrong pricing decisions.
Even if you manage to achieve impeccable data quality, it’s only half the battle – you must also process and analyze the information. Human errors can occur when a person compares figures or tries to figure out a repricing strategy.
How to overcome this problem? Automation is the answer. Consider integrating repricing tools
and price optimization
software: it will track prices on competitor websites and marketplaces, analyze pricing history and provide recommendations on optimal price points. You can get real-time price index data by adding your formulas to a software dashboard – no manual calculations required.