What Is Google Shopping?
Before we get into the topic of Google Shopping Pricing it is important to understand what google shopping is and why it is crucial for online retailers to start utilising this sales tool.
Google shopping is a service google offers for online retailers and even smaller scale online vendors to host their products for sale in a easy to utilise searchable format. The goal of this online marketplace was for the users (consumers) to be able to streamline the process of finding and buying products. The other main goal was to provide a product and price comparison on each particular items which gives the consumer the ability to choose the best product at the best price.
This service will allow you to showcase your products in a very smart but simple format, that will allow you to show imagery of the product, pricing information and also information of the retailer selling said product. This is a also a free to use service and by utilising this service your products will be able to appear in the google shopping tab. This tab is accessible directly from the google search engine as after you have typed in a product you can click on the shopping tab directly below the google search bar.
Why Google Shopping Price Optimisation Is Important ?
Google shopping is one of the biggest sales tools and should be taken advantage of to boost your sales directly. A lot of consumers will go to the google search engine to start the buying process of any given product and giving your products visibility in the search engine results with a strong competitive price is a no brainer. This requires you to be within a margin as like with google ads the bidding must be adjusted to get the most benefits.
To get the best results from your google shopping campaign we recommend price intelligence as this process requires tracking of all your relevant competitors, pricing changes, their margins and so on. This is something a price intelligence system can automate for you.
Another overlooked benefit of using price intelligence alongside google shopping is the clear visibility you can get on a multitude of competitors who are in your market with little time spent monitoring and even identify competitors that you might not be aware of. This allows you to understand the different price points and overall price strategies of your competitors much faster than if you were monitoring and trying to gauge each one individually.
The main goal is to boost the sales of your online store while ensuring that this is still profitable and viable by you-
These three factors should be considered before optimizing your bidding strategy-
1)The price position of your products with respect to the price of your competition.
2) The profit margin that the sale of this type of product brings to your business and is this a margin that you can adjust the price costs to boost sales.
3)The relevance of this product does it have a high conversion rate, does it have high demand, will this be affected by any trends or seasonal sales etc.
All these things should be considered when adjusting your bidding and the best way to identify key products and implement a more successful google shopping strategy is by taking advantage of all this clear pricing information accessible in one place your price intelligence system.
What price intelligence can do within google shopping-
-The prices of products that are the cheapest by a good margin, so you can keep the bid on Google Shopping and raise, by a set amount, the price of the product to increase the profit on each sale.
– Bid Prices which are not the cheapest, but Google’s system already gives it an advantageous position, so you can opt to adjust the price of your product and thus boost the profit through sales volume.
In short, we can identify what will be the best ROI (return on investment) by seeing what the most profitable bids will be to implement.
The Advantages Of A Competitor Based Pricing Strategy For Your Google Shopping Campaigns
Utilising a competitor based pricing strategy is great for google shopping pricing optimisation as the price intelligence information you acquire, gives you actionable data to help with your pricing decisions. The price point will be easy to calculate and this strategy is a relatively low risk approach.
Competitor-based pricing is a strategy that is easy to understand and implement. You can look at the markets pricing information and find the average price of the product. From then you can go with a higher or lower price point depending on your margins and customer expectations.
Another benefit of this strategy is that you are not going to be surprising your customers in regards to pricing as you will be setting your price at a price point that is expected by the consumers.
Another reason why this strategy is beneficial is because making these price changes doesn’t include any guessing or estimations as you just have to pick a respectable price point in the market. You can take this one step further by utilising a price intelligence system as you will see daily price information updates and know when your competitors are implementing price changes which you can quickly respond to.
How Price Optimisation Benefits More Than Just Your Google Shopping Pricing Strategy
Optimising your google shopping pricing is one out of many benefits price intelligence solutions can provide. By having daily updated pricing information on all your competitors, you will start to see the different ways you can utilise this data.
As your knowledge of competitive intelligence increases you start to identify areas were having this strong knowledge creates a knock on effect that can benefit all areas of your business. From marketing to logistics to sales even with more general aspects like improving business review meetings and general workflow. It should not be seen as a stand-alone piece of software like analytics, it should be seen as a bespoke solution that gives you the ability to manipulate the data depending on your size and scale alongside what you need from your price intelligence solution.
Please check out this two minute video that will give a breakdown of the price intelligence solution Insitetrack offers!