Price monitoring on marketplaces and price aggregators

Combating price dumping on marketplaces

Combating price dumping on marketplaces is a key challenge for brands and sellers, as it can erode trust in the brand, reduce profitability, and create issues with partners. Here are the main strategies to tackle this issue:

1) Price Monitoring

• Use Price Monitoring Tools.
  Automated solutions like Price Control enable real-time monitoring of marketplace prices. These tools help identify sellers engaging in price undercutting.
• Analyze Pricing Trends.
  Regularly reviewing competitor and partner pricing allows you to identify patterns of undercutting and respond quickly.

2) Partner Management

• Set Pricing Rules (MAP or MRSP).
  Establish a Minimum Advertised Price (MAP) policy, which is an agreement between the brand and its sellers regarding the minimum price at which products can be advertised. This helps mitigate the risk of price undercutting.
• Enforce Pricing Compliance.
  Include clauses in partner contracts specifying penalties for violating pricing policies, such as suspension of supply or fines.

3) Identifying Unauthorized Sellers

• Monitor Distribution Channels.
  Some undercutting sellers acquire products through unauthorized or "grey market" channels. It’s essential to track where and by whom your products are being sold.
• Block Unauthorized Sellers.
  Collaborate with marketplaces to remove sellers who violate your pricing policies.

4) Collaboration with Marketplaces

• Report Violations.
  Platforms like Amazon and eBay allow brands to file complaints against sellers who violate pricing policies.
• Participate in Brand Control Programs.
  Programs like Amazon Brand Registry provide brands with greater control over content and pricing on the platform.

5) Product Differentiation

• Create Exclusive SKUs.
  Launch special product versions with unique features or packaging for different marketplaces, making direct price comparisons more difficult.
• Add Value.
  Offer bundled services like extended warranties, bonuses, or free shipping to stand out from competitors.

6) Incentivizing Loyal Partners

• Loyalty Programs.
  Provide discounts or bonuses to partners who strictly adhere to your pricing policies.
• Exclusive Benefits.
  Offer exclusive products or priority access to inventory for loyal sellers.

7) Legal Measures.

• Legal Agreements.
  Include clauses in contracts with distributors and partners mandating compliance with your pricing policy.
• File Complaints.
  For serious violations, consider legal action against sellers or partners breaching agreements.

8) Strengthening Your Brand

• Focus on Uniqueness.
  Build a brand identity that makes customers choose your products not just for their price but for their quality, service, and reputation.
• Customer Communication.
  Educate consumers on why extremely low prices may indicate counterfeit products or unauthorized imports.

Addressing price undercutting requires a comprehensive approach involving technology, strict contracts, and active collaboration with marketplaces. By implementing price monitoring systems, increasing partner control, and focusing on your brand’s value, you can minimize undercutting and protect profitability.

What is a price aggregator?

For many retailers deciding where to list their products—on a marketplace or a price aggregator—the differences may not be immediately clear. Even for consumers, the distinction between these platforms can be confusing.

Here are the key differences between a marketplace and a price aggregator:

Why Are These Platforms Important in E-commerce?

As e-commerce continues to grow, an increasing number of purchases are being made online. According to expert forecasts, by the end of 2022, 50% of all online purchases will occur on marketplaces. Marketplaces are considered a more flexible model due to their multiple monetization options, while aggregators primarily rely on advertising and clicks for revenue.

How Price Aggregators Work: Comparing American and European Platforms

Price aggregators serve as tools that allow consumers to compare prices for products or services across multiple retailers. While the core principle is similar worldwide, American and European aggregators have distinct features shaped by regional market dynamics. Here's a look at how they operate, with examples from both regions.

American Price Aggregators

1. Google Shopping

How it works:
Google Shopping integrates directly with Google’s search engine, displaying product prices from various retailers. Sellers can list their items by setting up a Google Merchant Center account and running paid campaigns for higher visibility. The platform uses algorithms to rank products based on relevance, price, and retailer reviews.

Key features:

1. Seamless integration with Google Ads.
2. Real-time updates on product availability and pricing.
3. Wide adoption due to its connection to Google Search.

2. PriceGrabber

How it works:
PriceGrabber aggregates prices across multiple online stores, allowing users to filter results by category, price, or ratings. Retailers pay to be included in listings, and featured spots are available for those with higher bids.

Key features:

1. Comparison of shipping costs alongside product prices.
2. User reviews and retailer ratings for added transparency.
3. Focus on electronics, home goods, and apparel.

3. CamelCamelCamel

How it works:
Specializing in Amazon price tracking, CamelCamelCamel allows users to monitor price changes over time and set alerts for specific products. It sources its data directly from Amazon listings, providing historical price trends.

Key features:

1. Historical price charts for Amazon products.
2. Price drop notifications via email.
3. Free to use with a focus on consumer electronics and books.

European Price Aggregators

1. Idealo (Germany)

How it works:
Idealo allows consumers to compare prices for products across hundreds of retailers. Retailers upload their product listings and pay for clicks or conversions. Idealo emphasizes detailed product descriptions and user reviews.

• Key features:
  1. Multilingual support for different European markets.
  2. Price history tracking and alerts for buyers.
  3. Strong presence in categories like electronics, travel, and home goods.

2. Kelkoo (France, Europe)

How it works:
Kelkoo partners with online retailers to aggregate prices and drive traffic to their websites. It uses paid inclusion models, where sellers pay for visibility and clicks. The platform also works as an affiliate network.

Key features:

1. Covers a wide range of categories, including fashion, electronics, and travel.
2. Advanced filters for comparing features and delivery options.
3. Operates in multiple European countries with localized versions.

4. Ceneo (Poland)

How it works:
Ceneo is one of Poland’s leading price comparison platforms. Retailers integrate their product feeds, and consumers can compare prices, shipping costs, and payment options. The platform also includes a customer review system to build trust.

Key features:

1. Focus on electronics, appliances, and beauty products.
2. User-generated ratings for both products and sellers.
3. In-depth filters for personalized search results.

Key Differences Between American and European Aggregators

1. Market scope:
   American aggregators like Google Shopping focus on integration with search engines and large-scale advertising, while European platforms like Idealo and Allegro emphasize localized services and multilingual support.
2. Product categories:
   European aggregators often cater to specific regional demands, such as travel or luxury goods, while American platforms focus on broad consumer categories like electronics and apparel.
3. Pricing models:
   Both regions use pay-per-click or pay-per-conversion models, but European platforms are more likely to include affiliate networks for monetization.

By leveraging price aggregators tailored to their respective regions, businesses can reach a wider audience, and consumers can make smarter purchasing decisions.

What to Choose for Price Monitoring: Marketplace or Price Aggregator?

The question posed in the title doesn’t have a straightforward answer. Before deciding on a monitoring approach, you need to define key parameters—namely, the goal of your monitoring and the budget available for marketing processes.

When to Choose Price Aggregator Monitoring

If you own an online store and need to monitor a dozen competitors to understand the average market price and the types of products they promote, price aggregator monitoring will suffice. Aggregators provide a broad view of competitor offerings and pricing trends, making them ideal for obtaining quick, general insights into the market.

When to Choose Marketplace Monitoring

If you’re a new entrepreneur planning to sell products on a marketplace, understanding the pricing dynamics of that platform is crucial for business success. Marketplace monitoring helps you:

1. Analyze competitor pricing strategies.
2. Identify optimal price points to maximize sales.
3. Comply with pricing regulations (e.g., MAP policies).

For sellers operating on platforms like Amazon, eBay, or Walmart, monitoring marketplaces is indispensable for maintaining competitiveness and ensuring profitability.

When a Comprehensive Approach is Needed

If your goal is to maintain price control across the entire market, a comprehensive approach is required. The price monitoring service Price Control recommends not limiting your monitoring efforts to just marketplaces or price aggregators. Instead, include all online platforms where your brand is represented. This can include:

1. Marketplaces (e.g., Amazon, eBay).
2. Price aggregators (e.g., Google Shopping, Idealo).
3. Specialized e-commerce websites.

A comprehensive monitoring strategy ensures a holistic understanding of the market and effective decision-making.

The choice between marketplace and price aggregator monitoring depends on your specific needs:

1. For general market insights, choose price aggregators.
2. For platform-specific strategies, focus on marketplaces.
3. For complete price control, adopt a comprehensive approach that covers all relevant online platforms.

Our team is ready to assist you in implementing a tailored monitoring solution that meets your business objectives. Let us know how we can help!