With pricing and other purchase-influencing factors changing up to several times each day, retailers are finding that advanced technology systems are the only way to remain competitive.
Sunnyvale, Calif. (PRWEB) November 16, 2011
As the holiday shopping season kicks into high gear this month, Lixto, Inc., urges consumers and online retailers alike to diligently compare all options and make decisions with as much intelligence as possible.
“In the online shopping world, the old adage of ‘making your list and checking it twice’ has never been more important when it comes to comparison shopping,” says Christian Koestler, CEO of Lixto, Inc., an international leader in competitive price intelligence for the online retail and consumer products industries. Price intelligence refers to computer-based systems that identify, compare and analyze pricing and other revenue-related data for a business’s own operations as well as its competitors – data critical to making informed pricing decisions.
The National Retail Federation's 2011 Holiday Consumer Intentions and Actions Survey (Note 1) anticipates that American consumers will spend more than $700 each on gifts this year. Nearly 47 percent of those consumers will buy at least one gift online, up from 43.9 percent last year. In addition, the average holiday shopper plans for more than a third of his or her entire shopping process to take place online – whether comparing prices, researching products or making purchases. These statistics confirm that this year – more than ever – online retailers will need to be ready for increasingly sophisticated shoppers.
Prices of hot holiday toys vary up to 18 percent
The trick for both the consumer and online retailer is to find the best deal. Lixto used its Price Intelligence Suite recently to track the prices of the “Fabulous 15” toys on the 2011 Holiday Hot Toys List from ToysRUs (http://www.toysrus.com/shop/index.jsp?categoryId=10811023). Looking at prices across three of the country’s top online retailers, Lixto found tremendous disparity in pricing.
On any given day over the past week alone, the price of the “Fabulous 15” toys have changed – sometimes multiple times – at each retailer. The price difference for individual toys on the list at even the same retailer changed over the week, with movement both up and down. Between retailers, price differentials run up to 18 percent on singular items. Disparity becomes even greater looking at prices with and without shipping costs.
Messages for savvy consumers, online retailers
The message to the savvy Internet consumer is to take the time to comparison shop, to look at prices with and without shipping costs, and to evaluate online ratings for items they are considering. “The Internet can be a great tool, but only when the consumer makes the effort to shop conscientiously,” says Koestler.
The message to the Internet retailer may be even clearer, says Koestler. In the current economic market, he explains, online retailers cannot afford to complain about online abandonment – the practice of a consumer logging on to a retail site, adding items to his/her online shopping cart and then exiting before making a purchase – if they are not offering consumers the greatest overall value.
With pricing and other purchase-influencing factors changing up to several times each day, Koestler points out, retailers are finding that advanced technology systems are the only way to remain competitive. "It’s time for online retailers to understand, at a deep level, where they stack up in an increasingly competitive – and vast – online marketplace.”
Lixto, Inc., is an international leader in web data extraction and analysis. Extracting specific, precise data from the web, Lixto empowers better decision-making, drives operational performance and offers competitive price visibility. The company’s Price Intelligence Suite enables sophisticated price and margin management, incorporating specialist price operations, analytics and strategy modules. Companies throughout the world, including Best Western International, Fujitsu Technology Solutions, Hama, hotel.de, Iberostar Hotels, Insight Direct and shopping.com have adopted Lixto solutions.