Do you think your products or services are affordable, or perhaps even cheaper than the competition? The reality might surprise you! Sexito, an online retailer of erotic aids and a newcomer to the market, managed to just two months to succeed in a highly competitive environment, thanks to quick and accurate adjustments to their pricing strategy.
Price as the key to success
In an era of countless e-shops, price is often the deciding factor. However, spending hours in front of a screen manually checking the prices of other market players is not the right approach. The process must be automated and flexibleto keep you ahead in the fierce competitive landscape. But how do you go about it?
At the time we were optimizing their product comparison sites, Sexito's prices were extremely high, so the chances of success were slim. However, I was already familiar with Pricing Fox from the past, specifically their automated pricing and comprehensive monitoring of e-shops and competitors. I started educating myself in this area, earned a certification, and then applied everything in practice at Sexito.
– Tomáš Bosák, PPC Specialist
The goal was to build brand awareness, actively monitor competitor prices, and adjust them on a daily basis so that Sexito could remain competitive and climb to high sales volumes in a short time.
Step by step to automated pricing
The foundation Tomáš built upon was identifying pricing opportunities in real time and utilizing them effectively, which allowed them to reach customers much more effectively than the competition. In the Pricing Fox application, he primarily utilized:
1. Overview
A tool for detailed analysis to determine the next steps, which provided him with information not only about his client's prices but also those of the competition. This allowed him to better adapt to both the market and customer preferences. At the same time, he was able to identify product groups where margins allowed for price reductions, which led to better positions on product pages and in price-based sorting. This approach then enabled, during further optimization of product comparison sites (using bidding strategies), securing top positions in recommended sections. This way, we were able to increased visibility and conversion rates of individual categories.
2. Repricing rules and limits
He pre-set minimum and maximum price thresholds, ensuring that the price never dropped below cost while simultaneously taking advantage of opportunities to increase margins. The application then analyzed competitor pricing and, whenever there was room to raise prices without losing conversions, it automatically increased them and maximized profitability. However, the same approach cannot be applied to all products—for some, it is more advantageous to lower the price and gain a better position, while for others, it is better to maintain the margin. A certified specialist, such as Tomáš, allows you to use data from the application to identify these opportunities and assist with their implementation.
3. Monitoring
This ensured that no product escaped attention. The intuitive system allows for immediate reactions to changes – whether a product is listed exclusively or is also offered by competitors. It instantly reveals where prices need to be lowered or, conversely, increasedIt also takes into account a number of other factors, such as gifts or shipping costs.
4. Diagnostics
In other words – preventive checks for potential issues or recommendations for improvement that reveal a number of shortcomings, the resolution of which will allow for a significant boost in e-shop performance. Specifically for Sexito, this made it possible to identify weaknesses, such as poor product matching, improperly set prices, and more.
Results that exceeded the highest ambitions
Intelligent use of data and technology turned Sexito's uncertain market launch into a huge opportunity that led to growth and success that would likely never have been achieved with manual strategies. During the first month, e-shop conversions grew by 216%, which significantly increased the volume of orders. This resulted in a 304.66% increase in revenue. But Sexito didn't stop there! The following month, conversions climbed even higher, specifically to a level of +280%, significantly exceeding our set goal. Total revenue increased by 389%, which is four times the original results.
Discover the power of smart pricing for yourself
The story behind Sexit's numbers shows that in just two months an e-shop can achieve results that surpass even the most ambitious goals. Small price adjustments can increase conversions, attract orders, and significantly boost both revenue and profit. And the competition? They will be left far behind. Try it with us and gain the opportunity to:
1. Set everything up faster
Our specialist will help you set up both the Pricing Fox application itself and your feed management in the Mergado editor. Quickly and flawlessly.
2. Easily react to competitor changes
Together, we will identify your biggest competitors, analyze previous strategies, and create new ones for even better performance.
3. Adjust product prices for higher conversions and profit
Instead of mindlessly lowering prices, we will set up thoughtful strategies that reflect your goals and any limitations, turning product prices into high conversions. We will help customers perceive your products as a more attractive alternative and motivate them to purchase.
4. Automate processes and save a lot of time
This will give you more room to build your brand or take care of your customers – key components of success in e-commerce.
5. Keep control in your own hands
With access to the Pricing Fox application, you can regularly monitor the status of your products and check their performance. If you want to adjust anything, you can contact our specialist in time to ensure flexible reactions to market changes.
