Do you use dynamic pricing in your online shop? Already 4 out of 10 German online retailers change their prices dynamically in their shop. It’s gotten to the point that product prices change almost daily creating large price jumps. For instance, a German customer at MediaMarkt can save up to € 220.00 when purchasing a smartphone. Usually, however, prices on selected items are only modified by small amounts one to three times a month. The goal of the online retailers is to achieve a decisive competitive price advantage with small modifications that results in the customer purchasing in their shop at the end. Of course, price modification doesn’t need to be done manually – bots are analyzing comparable offers by competitors in the background and automatically make the changes. Dynamic personalized pricing takes it a step further. The price structure is no longer primarily geared to current competitor prices but according to the previous buying behavior of the customer. Special offers are sent depending on purchasing history, price sensitivity, residence, time of day or even monthly pattern.
Source: Dynamische Preisdifferenzierung im deutschen Online-Handel © Verbraucherzentrale Brandenburg e. V. / August 018
Internet searches using, for example, Google, go far beyond the classic text search nowadays. Organic search results are expanded by using a number of databases in the background. Matching images, videos, Google Map entries or shopping ads are shown before the organic search results. The entire thing is called Universal Search. This type of search is increasingly popular: Traffic through universal search queries are increasing through the new Google boxes. Image search is particularly popular, but Instagram and YouTube are also used as search engines. Google distinguishes whether a search query is coming from a desktop computer or a mobile device. On a smartphone, map entries are more likely to appear under the top results. Shopping ads, on the other hand, appear with higher probability on a desktop computer. For online marketers, it is worth learning about how this topic plays out. Be sure to comprehensively optimize websites so that organic search results do not completely disappear.