HomeBlogAll About Price Matching. How It Can Help eCommerce
All About Price Matching. How It Can Help eCommerce
It’s important for online stores to carefully consider the pros and cons of price matching and develop a strategy that aligns with their business goals and profit margins. By implementing a well-designed price matching policy, online retailers can effectively compete in the market while ensuring customer satisfaction and business profitability.
What is Price Matching
Price matching is a method of comparing prices for identical products or services across different stores or companies. This process enables consumers to find the best price for the products they wish to purchase and save money.
Price matching involves analyzing the prices of specific items and finding a store that offers the lowest cost. Retailers or companies offering price matching typically agree to match the lower price offered by a competitor, ensuring that customers can purchase the item at the most competitive price available in the market.
Price matching is a popular strategy used by retailers to attract customers and maintain competitiveness.
In retail, both price matching and price adjustment are strategies used to benefit customers by ensuring they get the best possible deal. However, there is a difference between the two.
Price matching refers to a policy where a retailer agrees to match the price of a product offered by a competitor. If a customer finds an identical product at a lower price in a different store, they can request a price match at the original retailer. The store will then adjust the price of the product to match the lower price and offer it to the customer.
On the other hand, price adjustment refers to a policy where a retailer provides a refund or credit for the price difference if the price of a product drops within a specified period after the customer’s purchase. This means that if a customer purchases a product and later notices that the price has decreased, they can request a price adjustment and receive a refund or credit for the difference.
Each retailer may have its own specific policies and timeframes for price adjustment. Some may offer price adjustments within a few days, while others may have longer periods such as 30 or 60 days. Additionally, certain conditions and restrictions may apply, such as the product needing to be in stock or the price adjustment only being valid for certain categories of products.
In summary, price matching involves matching the price of a competitor’s product, while price adjustment involves refunding the price difference if the price of a product decreases after purchase. Both strategies aim to ensure that customers receive the best possible price for their purchases.
Price Matching Examples
Here are some examples of online stores that offer price matching:
#1 Best Buy
Best Buy’s price match policy includes a long list of online stores that they will match, such as Amazon, Walmart, Target, and more. Customers can request a price match at the customer service desk, and the store will independently verify the lower price before granting the match. Customers can request a refund for the price difference if the price of an item they purchased from BestBuy.com or a Best Buy store drops within the return and exchange period (usually within 15 days). However, there are certain exclusions and limitations, so it’s best to review their policy for specific details.
#2 Target
Target offers price matching for select online retailers, including Amazon, Walmart, and Best Buy. Customers can show the lower price on their mobile device or bring a printed page showing the current price to a Target associate to request the match. Target has a price adjustment policy that allows customers to receive a refund for the price difference if the price of an item they purchased from Target.com or a Target store drops within a specified timeframe (typically within 14 days). This policy excludes clearance items and certain other exclusions.
#3 Amazon
Amazon has a price adjustment policy known as “Amazon’s Price Parity Policy.” If the price of an item you purchased drops within a specified timeframe (usually within 7 days), you can request a refund for the price difference. However, this policy excludes third-party sellers on Amazon.
#4 Walmart
Walmart has a price adjustment policy that allows customers to receive a refund for the price difference if an item they purchased from Walmart.com drops in price within a specific timeframe (typically within 7 days). This policy applies to both online purchases and in-store purchases.
Walmart price matching policy
#5 Staples
Staples will price match with Amazon for the same exact model that is currently available for sale on Amazon.com. Customers can show evidence of the lower Amazon price on their smartphone or in print to a Staples associate for the price adjustment.
#6 Fry's
While information on Fry’s price matching policy is limited, it is known that they have matched prices with online retailers in the past. It is recommended to inquire with Fry’s directly or check their website for the most up-to-date information on their price matching policy.
#7 Home Depot
Home Depot offers price matching with various online retailers, including Amazon, Walmart, and more. Customers can bring proof of the lower price and request a match at the customer service desk or when making a purchase.
#8 Nordstrom
Nordstrom offers a price adjustment policy called “The Nordstrom Price Match Policy,” which allows customers to request a refund for the price difference if the item they purchased from Nordstrom.com or a Nordstrom store goes on sale within a specified timeframe (usually within 14 days). However, this policy excludes certain items and limited-time promotions.
Please note that price matching policies may vary by store and may have specific conditions and restrictions. It’s always a good idea to check the details of each retailer’s policy before making a purchase.
Types of Price Matching
Here are some types of price matching that exist:
Retailer-to-Retailer Price Matching: This is the most common type of price matching where a retailer matches the lower price offered by another retailer for the same product. Customers can typically request the price match by providing proof of the lower price, such as a screenshot or advertisement.
The Target's online competitor list
Online Retailer Price Matching: Some online retailers offer price matching where they match the lower price found on other online platforms. This allows customers to get the best price without having to shop around different websites.
In-Store Price Matching: Physical stores also offer in-store price matching where they match the lower price found at other local competitors. Customers can request the price match at the customer service desk by showing evidence of the lower price.
Manufacturer Price Matching: In some cases, manufacturers themselves offer price matching for their products. This type of price matching may have specific requirements and procedures, which can vary depending on the manufacturer.
Hybrid Price Matching: Some retailers, both online and physical, offer hybrid price matching, where they match the price of their own products between their online and offline channels. This ensures consistency in pricing and allows customers to take advantage of the lower prices available across different channels.
The Pros of Price Matching
Еhe price matching and adjustment strategy has a positive impact on buyers and customer care. And has a number of online business benefits:
Increased Sales
Price matching can help online businesses attract more customers by offering competitive prices. When customers see that your business is willing to match or beat prices offered by competitors, they are more likely to make a purchase from your website instead of looking elsewhere.
Price matching is one part of big strategy to attract customers
Enhanced Customer Loyalty
Price matching can build customer loyalty by fostering trust and confidence in your brand. When customers know that they can rely on your business to offer the best prices, they are more likely to become repeat customers and advocate for your brand.
Improved Competitive Advantage
Price matching allows online businesses to stay competitive in the market. By offering price matching, you can differentiate yourself from other businesses and attract customers who prioritize getting the best deal.
Customer Satisfaction
Price matching ensures that customers feel satisfied with their purchase. If a customer finds a lower price after buying a product from your website, offering price matching allows you to provide them with a refund or price adjustment, making them feel valued and satisfied with their overall shopping experience.
Brand Reputation
Implementing price matching can help build a positive brand reputation. Customers perceive businesses that offer price matching as fair, customer-centric, and committed to providing excellent value. This positive perception can enhance your brand’s reputation and set you apart from competitors.
The Cons of Price Matching
But in addition to the positive effect, price matching and adjustment has its drawbacks. Its should be borne in mind when developing a pricing and refund policy.
The main cons or drawbacks of price matching and price adjustment for online businesses:
Degraded Margins
Price matching and price adjustment can lead to reduced profit margins for online businesses. When businesses constantly match or lower their prices to compete with competitors, it may result in lower profitability for each sale.
Possibilities of Price Wars
Price matching can escalate into price wars among competitors. If multiple businesses continuously lower their prices to match each other, it can create a challenging environment where profit margins are severely impacted and it becomes difficult to stay profitable.
Adding value during price war one of the way to survive
Encouraged Competitor Shopping
Price matching can potentially encourage customers to shop around for the lowest price. While this may initially attract customers to your business, it also means they are less likely to develop brand loyalty. Customers may become more focused on finding the lowest price rather than establishing a long-term relationship with your brand.
Increased Cost of Operations
Price matching and price adjustment strategies require ongoing monitoring of competitor prices and constant adjustments. This can significantly increase the cost of operations for online businesses, as they need to invest in technologies and tools to track prices and make frequent price changes.
Limited Differentiation
Price matching can make it challenging for online businesses to differentiate themselves based on value-added services or unique product offerings. When price becomes the most significant factor driving customer choices, it can be difficult to stand out from competitors solely based on price alone.
How to Implement Price Matching in eCommerce and Not Lose Profit
If you are the owner of an eCommerce site, you have likely contemplated implementing price matching as a strategy. However, you may be uncertain about whether it is suitable for your business. Many business owners seek guidance on how to establish prices that are lower than those of their competitors but still maintain a profitable margin. This is particularly relevant for direct-to-consumer companies that have the ability to offer the lowest prices but are unsure about the ideal price to display under their product images.
Determining the optimal pricing strategy involves finding a balance between competitiveness and profitability. Price matching can be advantageous in attracting price-conscious customers who actively seek out the best deals. By setting prices lower than your competitors, you can create an incentive for customers to choose your products over others.
To effectively implement price matching, market research on competitor pricing is crucial. Analyze the prices of similar products offered by your competitors to determine a reasonable benchmark. It is essential to ensure that the prices you set are not below your profit margin. By carefully considering your costs, including production, marketing, and overhead expenses, you can establish a pricing structure that allows for profitability.
Additionally, take into account value-added features, quality, customer service, and branding when setting prices. These factors can differentiate your products from those of competitors and justify slightly higher prices. Providing a unique and valuable customer experience can generate customer loyalty and justify a premium.
Ultimately, pricing decisions require a thorough understanding of your target market and competition. Regular assessment and adjustment of prices based on market dynamics and customer preferences are essential for success in the eCommerce industry.
For an adequate price, consider these factors
6 Tools that Make Price Matching for Business Easier
To develop a price matching strategy, you can find many useful tools and applications. We have reviewed the most interesting ones. And if necessary, we will develop integration with any of the services.
Rebee:Rebee is a digital flyer tool that helps online businesses monitor competitor prices more efficiently. It allows you to create virtual flyers showcasing your products and their prices, making it easier to compare and adjust your prices accordingly. Several supermarkets use Rebee to showcase their weekly deals and match prices with other competitors.
Price2Spy: Price2Spy is a comprehensive price monitoring and matching tool. It tracks prices of products across various online platforms and provides detailed reports and analytics to help you make informed pricing decisions. Many e-commerce businesses, such as electronics retailers and fashion brands, use Price2Spy to monitor competitor prices and adjust their own prices accordingly.
PriceSpider: PriceSpider is a pricing intelligence and optimization platform. It tracks competitor prices and provides real-time data and analytics to help you optimize your pricing strategy. Many online retailers, including technology and home goods companies, use PriceSpider to monitor competitor prices and make price adjustments.
PriceSpider service
Prisync: Prisync is a price tracking and optimization tool that helps online businesses monitor and match competitor prices. It provides real-time pricing data, enables automated price adjustments, and offers dynamic pricing suggestions. E-commerce businesses across various industries, such as electronics, cosmetics, and automotive, use Prisync to track and match competitor prices.
Wiser Solutions: Wiser Solutions is a price monitoring and optimization platform that helps online businesses gather and analyze pricing data. It offers competitive price tracking, dynamic pricing algorithms, and price optimization strategies to enhance your price matching efforts. Retailers in the beauty and personal care industry use Wiser Solutions to monitor competitor prices and improve their pricing strategies.
CommerceIQ: CommerceIQ is an AI-powered platform that provides real-time insights and automation capabilities to help online businesses optimize their pricing strategy. It uses advanced algorithms to track competitor prices, analyze market trends, and suggest dynamic pricing recommendations. E-commerce companies in various sectors, such as consumer electronics and household goods, use CommerceIQ to automate price matching processes and improve their overall pricing strategy.
Price matching benefits your business by attracting customers who are price-sensitive and value-conscious. It helps to build customer loyalty, increase sales, and improve your brand reputation as customers perceive your business as offering competitive pricing.
The criteria for price matching may vary depending on your business. Typically, it involves matching the price of an identical product or service offered by a competitor, considering factors such as the product’s brand, model, features, and warranty.
It is not necessary to match prices on all products. You can choose to match prices on specific products that are commonly compared by customers or products that have high demand in the market. This allows you to focus your price matching efforts where it has the most impact.
Yes, there might be limitations or exclusions for price matching. Some common limitations include matching prices only from authorized retailers, requiring the product to be in stock, and excluding pricing errors or clearance sales. It is important to clearly communicate the limitations and exclusions to customers to avoid misunderstandings.
When the competitor’s price is below your cost, it may not be feasible or sustainable to match that price. In such situations, it is important to evaluate your costs and consider alternative strategies, such as highlighting the value-add or unique features of your product or service to justify your pricing.
To communicate your price matching policy to customers, you can display it prominently on your website, in-store signage, promotional materials, and during customer interactions. Providing clear and concise information about your policy and its terms and conditions will help customers understand your commitment to competitive pricing.
The documentation required to prove a lower price may vary depending on your policy. Common forms of documentation include a physical or digital advertisement from the competitor showing the lower price, a screenshot of the website, or a receipt from a recent purchase.
It is important to respond to price matching requests promptly. Aim to respond within a reasonable timeframe, ideally within 24 to 48 hours. Quick response times show your commitment to customer satisfaction and help build trust and loyalty.
Yes, it is possible to make a profit while price matching. Price matching should be done strategically, taking into account your costs, profit margins, and overall business goals. By carefully managing your pricing and costs, you can ensure that price matching initiatives contribute to your profitability.
When selling online, automated price monitoring tools can help you track competitors’ prices and adjust your prices accordingly. In-store, it may be useful to empower your sales staff with the knowledge and authority to match prices on the spot, ensuring a seamless and consistent customer experience across all channels.
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All About Price Matching. How It Can Help eCommerce
It’s important for online stores to carefully consider the pros and cons of price matching and develop a strategy that aligns with their business goals and profit margins. By implementing a well-designed price matching policy, online retailers can effectively compete in the market while ensuring customer satisfaction and business profitability.
What is Price Matching
Price matching is a method of comparing prices for identical products or services across different stores or companies. This process enables consumers to find the best price for the products they wish to purchase and save money.
Price matching involves analyzing the prices of specific items and finding a store that offers the lowest cost. Retailers or companies offering price matching typically agree to match the lower price offered by a competitor, ensuring that customers can purchase the item at the most competitive price available in the market.
Price matching is a popular strategy used by retailers to attract customers and maintain competitiveness.
Price Matching and Price Adjustment
In retail, both price matching and price adjustment are strategies used to benefit customers by ensuring they get the best possible deal. However, there is a difference between the two.
Price matching refers to a policy where a retailer agrees to match the price of a product offered by a competitor. If a customer finds an identical product at a lower price in a different store, they can request a price match at the original retailer. The store will then adjust the price of the product to match the lower price and offer it to the customer.
On the other hand, price adjustment refers to a policy where a retailer provides a refund or credit for the price difference if the price of a product drops within a specified period after the customer’s purchase. This means that if a customer purchases a product and later notices that the price has decreased, they can request a price adjustment and receive a refund or credit for the difference.
Each retailer may have its own specific policies and timeframes for price adjustment. Some may offer price adjustments within a few days, while others may have longer periods such as 30 or 60 days. Additionally, certain conditions and restrictions may apply, such as the product needing to be in stock or the price adjustment only being valid for certain categories of products.
In summary, price matching involves matching the price of a competitor’s product, while price adjustment involves refunding the price difference if the price of a product decreases after purchase. Both strategies aim to ensure that customers receive the best possible price for their purchases.
Price Matching Examples
Here are some examples of online stores that offer price matching:
#1 Best Buy
Best Buy’s price match policy includes a long list of online stores that they will match, such as Amazon, Walmart, Target, and more. Customers can request a price match at the customer service desk, and the store will independently verify the lower price before granting the match. Customers can request a refund for the price difference if the price of an item they purchased from BestBuy.com or a Best Buy store drops within the return and exchange period (usually within 15 days). However, there are certain exclusions and limitations, so it’s best to review their policy for specific details.
#2 Target
Target offers price matching for select online retailers, including Amazon, Walmart, and Best Buy. Customers can show the lower price on their mobile device or bring a printed page showing the current price to a Target associate to request the match. Target has a price adjustment policy that allows customers to receive a refund for the price difference if the price of an item they purchased from Target.com or a Target store drops within a specified timeframe (typically within 14 days). This policy excludes clearance items and certain other exclusions.
#3 Amazon
Amazon has a price adjustment policy known as “Amazon’s Price Parity Policy.” If the price of an item you purchased drops within a specified timeframe (usually within 7 days), you can request a refund for the price difference. However, this policy excludes third-party sellers on Amazon.
#4 Walmart
Walmart has a price adjustment policy that allows customers to receive a refund for the price difference if an item they purchased from Walmart.com drops in price within a specific timeframe (typically within 7 days). This policy applies to both online purchases and in-store purchases.
#5 Staples
Staples will price match with Amazon for the same exact model that is currently available for sale on Amazon.com. Customers can show evidence of the lower Amazon price on their smartphone or in print to a Staples associate for the price adjustment.
#6 Fry's
While information on Fry’s price matching policy is limited, it is known that they have matched prices with online retailers in the past. It is recommended to inquire with Fry’s directly or check their website for the most up-to-date information on their price matching policy.
#7 Home Depot
Home Depot offers price matching with various online retailers, including Amazon, Walmart, and more. Customers can bring proof of the lower price and request a match at the customer service desk or when making a purchase.
#8 Nordstrom
Nordstrom offers a price adjustment policy called “The Nordstrom Price Match Policy,” which allows customers to request a refund for the price difference if the item they purchased from Nordstrom.com or a Nordstrom store goes on sale within a specified timeframe (usually within 14 days). However, this policy excludes certain items and limited-time promotions.
Please note that price matching policies may vary by store and may have specific conditions and restrictions. It’s always a good idea to check the details of each retailer’s policy before making a purchase.
Types of Price Matching
Here are some types of price matching that exist:
The Pros of Price Matching
Еhe price matching and adjustment strategy has a positive impact on buyers and customer care. And has a number of online business benefits:
Increased Sales
Price matching can help online businesses attract more customers by offering competitive prices. When customers see that your business is willing to match or beat prices offered by competitors, they are more likely to make a purchase from your website instead of looking elsewhere.
Enhanced Customer Loyalty
Price matching can build customer loyalty by fostering trust and confidence in your brand. When customers know that they can rely on your business to offer the best prices, they are more likely to become repeat customers and advocate for your brand.
Improved Competitive Advantage
Price matching allows online businesses to stay competitive in the market. By offering price matching, you can differentiate yourself from other businesses and attract customers who prioritize getting the best deal.
Customer Satisfaction
Price matching ensures that customers feel satisfied with their purchase. If a customer finds a lower price after buying a product from your website, offering price matching allows you to provide them with a refund or price adjustment, making them feel valued and satisfied with their overall shopping experience.
Brand Reputation
Implementing price matching can help build a positive brand reputation. Customers perceive businesses that offer price matching as fair, customer-centric, and committed to providing excellent value. This positive perception can enhance your brand’s reputation and set you apart from competitors.
The Cons of Price Matching
But in addition to the positive effect, price matching and adjustment has its drawbacks. Its should be borne in mind when developing a pricing and refund policy.
The main cons or drawbacks of price matching and price adjustment for online businesses:
Degraded Margins
Price matching and price adjustment can lead to reduced profit margins for online businesses. When businesses constantly match or lower their prices to compete with competitors, it may result in lower profitability for each sale.
Possibilities of Price Wars
Price matching can escalate into price wars among competitors. If multiple businesses continuously lower their prices to match each other, it can create a challenging environment where profit margins are severely impacted and it becomes difficult to stay profitable.
Encouraged Competitor Shopping
Price matching can potentially encourage customers to shop around for the lowest price. While this may initially attract customers to your business, it also means they are less likely to develop brand loyalty. Customers may become more focused on finding the lowest price rather than establishing a long-term relationship with your brand.
Increased Cost of Operations
Price matching and price adjustment strategies require ongoing monitoring of competitor prices and constant adjustments. This can significantly increase the cost of operations for online businesses, as they need to invest in technologies and tools to track prices and make frequent price changes.
Limited Differentiation
Price matching can make it challenging for online businesses to differentiate themselves based on value-added services or unique product offerings. When price becomes the most significant factor driving customer choices, it can be difficult to stand out from competitors solely based on price alone.
How to Implement Price Matching in eCommerce and Not Lose Profit
If you are the owner of an eCommerce site, you have likely contemplated implementing price matching as a strategy. However, you may be uncertain about whether it is suitable for your business. Many business owners seek guidance on how to establish prices that are lower than those of their competitors but still maintain a profitable margin. This is particularly relevant for direct-to-consumer companies that have the ability to offer the lowest prices but are unsure about the ideal price to display under their product images.
Determining the optimal pricing strategy involves finding a balance between competitiveness and profitability. Price matching can be advantageous in attracting price-conscious customers who actively seek out the best deals. By setting prices lower than your competitors, you can create an incentive for customers to choose your products over others.
To effectively implement price matching, market research on competitor pricing is crucial. Analyze the prices of similar products offered by your competitors to determine a reasonable benchmark. It is essential to ensure that the prices you set are not below your profit margin. By carefully considering your costs, including production, marketing, and overhead expenses, you can establish a pricing structure that allows for profitability.
Additionally, take into account value-added features, quality, customer service, and branding when setting prices. These factors can differentiate your products from those of competitors and justify slightly higher prices. Providing a unique and valuable customer experience can generate customer loyalty and justify a premium.
Ultimately, pricing decisions require a thorough understanding of your target market and competition. Regular assessment and adjustment of prices based on market dynamics and customer preferences are essential for success in the eCommerce industry.
6 Tools that Make Price Matching for Business Easier
To develop a price matching strategy, you can find many useful tools and applications. We have reviewed the most interesting ones. And if necessary, we will develop integration with any of the services.
FAQ
Price matching benefits your business by attracting customers who are price-sensitive and value-conscious. It helps to build customer loyalty, increase sales, and improve your brand reputation as customers perceive your business as offering competitive pricing.
The criteria for price matching may vary depending on your business. Typically, it involves matching the price of an identical product or service offered by a competitor, considering factors such as the product’s brand, model, features, and warranty.
It is not necessary to match prices on all products. You can choose to match prices on specific products that are commonly compared by customers or products that have high demand in the market. This allows you to focus your price matching efforts where it has the most impact.
Yes, there might be limitations or exclusions for price matching. Some common limitations include matching prices only from authorized retailers, requiring the product to be in stock, and excluding pricing errors or clearance sales. It is important to clearly communicate the limitations and exclusions to customers to avoid misunderstandings.
When the competitor’s price is below your cost, it may not be feasible or sustainable to match that price. In such situations, it is important to evaluate your costs and consider alternative strategies, such as highlighting the value-add or unique features of your product or service to justify your pricing.
To communicate your price matching policy to customers, you can display it prominently on your website, in-store signage, promotional materials, and during customer interactions. Providing clear and concise information about your policy and its terms and conditions will help customers understand your commitment to competitive pricing.
The documentation required to prove a lower price may vary depending on your policy. Common forms of documentation include a physical or digital advertisement from the competitor showing the lower price, a screenshot of the website, or a receipt from a recent purchase.
It is important to respond to price matching requests promptly. Aim to respond within a reasonable timeframe, ideally within 24 to 48 hours. Quick response times show your commitment to customer satisfaction and help build trust and loyalty.
Yes, it is possible to make a profit while price matching. Price matching should be done strategically, taking into account your costs, profit margins, and overall business goals. By carefully managing your pricing and costs, you can ensure that price matching initiatives contribute to your profitability.
When selling online, automated price monitoring tools can help you track competitors’ prices and adjust your prices accordingly. In-store, it may be useful to empower your sales staff with the knowledge and authority to match prices on the spot, ensuring a seamless and consistent customer experience across all channels.
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