Price optimization in online trading – a curse or a blessing?

Hundreds of new webshops are created every day, thousands of new customers are won and countless products are ordered online. As the supply rises, the price war among dealers increases immeasurably. Every day, traders are forced to keep a close eye on market developments in order to be able to generate competitive advantages over the competition at an early stage and to optimize prices. Statements that repricing on Amazon , ebay and ruining the prices and thus the margins in regular online trading is something that can be heard over and over again these days. From a subjective point of view, this may actually be true, but when viewed objectively, this is the only way to achieve attractive and competitive prices.

Price optimization

How does the buyer decide?

If a buyer purchases products online, he is more and more experienced in tracking down the best suppliers. No wonder, since he has a lot of tools at hand to convince himself of the price. Google shopping, price search engines and other helpers conveniently display the hits found. The incorporated evaluations simplify the selection of the right provider. If the price is also right, it influences the purchase decision

Can the purchase criteria be met?

If you look at the list of offers and consider your own purchasing behavior, service quality (measured by the rating and response time) and price are decisive. Both are criteria that are represented by apparent values. Customer satisfaction is determined by the service quality of the provider. Every aspect relevant to sales should be optimized down to the smallest detail – from purchase intention, purchase transaction, customer communication through to any reversal.

Computer-aided price optimization as an opportunity

Often providers have an extensive range of goods. This makes the offer more attractive, enables cross-selling, but at the same time poses a problem for retailers, who have to ask themselves how they can now offer their products at competitive prices.

Of course, no one is able to process the flood of information about the constantly changing offers in order to keep the price of all products as attractive as possible. On the other hand, however, this is implicitly assumed by the buyer. In summary, one can say that only computer-aided, automated price optimization can solve this problem. This can guarantee that this information can be processed at any time, offers can be compared and the price can be set based on the defined price limits.

Advantages of price optimization with SnapTrade

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  • 2in1 software for Amazon and eBay
  • integrated competition analysis
  • personal advice and online help
  • ASIN-Advisor finds new Amazon bestsellers
  • Interfaces to inventory management
  • Price calculation calculates price ranges
  • Price optimization for Amazon B2B prices

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The right strategy as a success factor

Obviously, reaching and wagering the price would be pretty easy. However, this would be commercial and strategic nonsense to sell all products at the minimum price. In order to be able to carry out an intelligent and above all effective price optimization, automated systems for price optimization offer an efficient solution. Provider-specific rules also make it possible to specifically target the respective competition and to thin out offer lists according to ratings and delivery times – not everyone has to be undercut.

Price optimization in the high price segment

Some manufacturers have managed to place their products so cleverly in the market that they get the snob effect advantage do. The customer is ready to accept a significantly higher purchase price for an image or a status symbol. Even if the selling price is significantly higher, the margin for the reseller is low. In order to still be able to sell acceptable quantities, you have to stand out from the crowd of other providers, which is why price optimization should definitely be considered for such high-priced products.


If you look at the development of the market in recent years, it can be said that retailers have long had no sole voting right in pricing. Through online trading, the market has changed from a regional market to a national to international market. The increasing supply naturally also means that the competition is bigger and tougher. While customers are familiar with the tools required to compare offers, price and service quality are among the only decisive factors that determine the conclusion of a contract. It should therefore be the task of every retailer to see price optimization as a kind of ingredient for their personal recipe for success.