Want To Make Money From Ecommerce? Use Price Comparison Sites!
Today, we’ll talk about online price comparison sites.
You’re probably wondering, ‘Why would anyone use such websites for their business? Isn’t it something for those who buy rather than sell?’
It is. But you can also use it as a powerful tool in your online business. Here’s an example of how important your pricing policy can be.
In 1984, the air routes between London and Ireland were dominated by two monopolists – British Airways and Aer Lingus.
Yet, Christopher Ryan, Liam Lonergan and Tony Ryan registered their small airline in Sword, a small town near Dublin, and called it Ryanair. The company’s registered capital was only £1 and it had only 25 people in the staff. The only aircraft was so small it could carry only 15 passengers.
And they had to defy huge air carriers. How? They started the very first fare war in European aviation industry.
At that time, the cheapest flight offered by British Airways and Aer Lingus cost £209. Ryanair offered tickets for £99. In 1986 the company carried 82 thousand passengers and became the first low-cost carrier in Europe.
As you probably know, being able to offer a better price gives you advantage over any competitors. But to do that, you need to know what prices other companies set. And that’s where online price comparison sites might come in handy.
What is a price comparison site?
Whenever you want to buy something, you obviously want it for the lowest price possible, especially when the money is tight. And it’s frustrating to find the same product for a better price after you’ve bought one.
But to find a better price, you’ll have to browse through dozens of online shops. To avoid it, you need a platform that does the work for you.
A price comparison site is a resource that shows prices on certain goods offered by different online shops, outlets and platforms.
Most of them have a detailed list of categories and subcategories, as well as the links leading to original stores. Some of such sites have links to product reviews, merchants’ rating and other useful details.
Although they are designed for shoppers, retailers can find them useful, too.
How you can use comparison sites for your online business?
1) Obviously, you can use these tools to see whether your own prices are competitive. If other stores sell high, everything is right. If they offer better prices, it’s time to think about scaling down yours.
2) Since such apps and sites show you not only goods but platforms selling them as well, you can learn what competitors you have. Sometimes even if someone sells for a better price, it doesn’t necessarily mean they attract all the customers. If the quality of goods at another store is worse than that of your products, it may be Ok not to lower your prices.
3) Beside the quality of products sold on other platforms, you can also evaluate other details such as cost of shipping or delivery time, etc. These parameters are as important as prices. Often we agree to pay more for a faster delivery.
4) Many price comparison websites redirect you to product pages, and it’s an easy way to analyze what strengths and weaknesses your rivals have. Even if a competitor’s store has no or few flaws, it’s your chance to learn and apply this knowledge to your own shop.
5) In a way, price comparison services may work as another promotion channel. If the site has products similar to yours but doesn’t have your online store – that’s a problem. But if you sign up there and get to higher positions, people will see that there’s a shop selling lots of such goods for a good price. You’ll be noticed!
5 best online price comparison sites
It is probably your basic tool for comparing prices online. It’s quite simple and can be used to search for better prices and goods with higher rating. Furthermore, online retailers can use it to promote their own goods by adding their products to the list. The engine also has a number of additional options allowing you to look for particular store owners. Another advantage of Google Shopping is the quick access to reviews.
What else to say! It’s Google, so this tool is a must have.
This site has a VERY user friendly and intuitive interface. And lots of categories and options to narrow down your search. For example, if you’re looking for clothes, you can sort the results according to subcategories, brands, size, color, material and even sleeve type.
This one also has a good interface allowing you to find almost anything. What’s more, Shopzilla’s users can rate stores. It is originally designed to share your shopping experience, but an online store owner can use it to learn more about their competitors. Furthermore, the engine shows users available tax and shipping options.
Another useful tool similar to the previous web site. Here you can choose between a wide range of search filters, see retailers’ rating and what taxes and shipping terms each product has. Besides, if available, you can also browse through seller reviews.
This one is actually a bit hard to handle. Not the best interface, in my opinion, though here you can find retailers’ rating and reviews and even price behavior diagrams. But what’s more important, this site is often used by shoppers living in the Middle East and a number of countries in Africa. So if you want to sell goods to this region, make sure to use it.
Of course, there are much more sites that one can use to compare prices and special offers. Some of them are designed to work only within a certain country, and you can find them useful, too, if you’re going to sell goods in this country.
And don’t forget that more and more people use smartphones nowadays including for the purposes of shopping. So checking out some of the most popular price comparison apps will not hurt.
Now, you know how to prompt your business growth with the help of price comparison sites. It’s time to put the knowledge into practice!