Best online selling solutions
Edu blog

Dynamic Pricing & Product Groups - Independence that pays off

E-commerce is all about independent online stores. However, rapidly growing marketplaces, that promise easy income, are attracting more and more merchants. In order to survive on an auction site, you have to constantly lower the prices of your products (and pay a high margin at the same time). What if we told you that there is a tool that allows you to sell products at the same price as on Allegro, and the money saved on the margin you will be able to invest in advertising? This will give you independence and allow you to build your own brand. How to do it? We' d like to introduce Dynamic Pricing & Product Groups - a new feature from IdoSell.

Sales Trap

Focusing your sales only on auction sites, may seem like a safe solution. In theory: you just need to have the products and then you can start doing business, because the platform will help you immediately reach a large number of target customers.In practice, it turns out that just appearing on an auction site is not enough, and selling in marketplaces generates a lot of costs.

Imagine you have a scarf store and you start selling on a popular site. Simultaneously you also run an e-store. You have a beautiful silk scarf in your assortment. To have a competitive offer, you list it on an auction site for 264.99 PLN. For this product, at this price, you will have to pay 12% commission for the sale (a little over 30 PLN). In addition, when shopping, customers will probably not pay attention to who they were shopping with. They were looking for a specific item, so the full range of your products is probably not going to interest them anymore. Additionally, the chances that they will return to your profile on the website are limited.

Despite appearances, opening an e-business in the marketplace is connected with significant costs and sacrifices. Setting up an account in the marketplace in free, which is why there are many sellers on the sites. The only thing you can do to stand out in this flood of offers is a very low product price and product promotion. For example, on Allegro, for five days of promotion of goods on the page of a particular section, you have to pay about 33 PLN. For 10 days of highlighting - 19 PLN. There are no more marketing tools, so you can be sure that the competition also uses them.

But first of all sale in auction services is connected with high commission for sale. Depending on the product, it is from 4 to 16 percent. In addition, merchants have to pay, for example, for items that have not been sold within a year or simply for displaying some products. In addition, services constantly engage sellers in various activities that are related to the standardization of the offer, so they do not have time to think about improving their sales channel, the possibility of reducing fees and development.

- In marketplaces, you are either the cheapest and you sell, or you are gone and no one uses your services. Marketplace is like the government, it doesn't have its money. It has as much as it takes from the sellers. It's the merchants that keep the auction sites going," Pawel Fornalski, CCO of IdoSell, said at the I Love Marketing conference.

Independence with Dynamic Pricing & Product Groups

From more than 20 years of experience, IdoSell says that having your own e-store provides stability and great opportunities for growth. Of course, we do not hide the fact that running an online store requires certain fees (e.g. subscription, implementation, tools). However, we can assure you that in the long run, independence and lack of high commissions make e-stores become autonomous and reliable businesses. At the same time, we are not saying that you should completely give up selling on Amazon or Allegro. However, it is worth running your own store and treating auction services as additional sales channels.

The e-commerce market is changing dynamically, the competition is increasing, and the sales pressure from the marketplace is more and more noticeable for merchants. This made IdoSell decide to create a module Dynamic Pricing & Product Group that makes it easy to optimize sales across channels. This tool uses historical data from different sales channels and allows you to optimize the offer of your online store, sent to Google Shopping and Facebook. Thanks to this mechanism, a retailer can, with a single click, build product groups (selected by intelligent algorithms) for promotion in selected sales channels. This makes it possible for store owners to focus their advertising efforts immediately on those products worth investing in.

If you want to learn more about Dynamic Product Groups, go here.

Dynamic groups is a free module if you contract us to manage your ads in Google within the service Google Ads by IdoSell. If you manage Google ads yourself, the service has an additional fee.The fee is 500 PLN (per store) and is charged only after one month of using the service.

Learn more

Soon the Dynamic Product Groups functionality will be complemented by the Dynamic Pricing module that will allow you to define ready-made rules to control prices so that your online store will always be cheaper than the offer in the marketplace where you pay additional commissions. This has a colossal impact on the effectiveness of advertisements.

Related content