If you look at the retail industry you will see that every year online retail has grown and has outperformed traditional retailers. You can find many reasons behind the growth of online retail, but one of the biggest contributors to the growth is comparison shopping. So what is comparison shopping?
Well it’s the ability to compare the prices of products across multiple retailers to find the best price. Research shows that 59% of buyers like to compare prices before making a purchase. This is because comparative shopping is much easier. Websites with comparison shopping engines will allow you to cross-check the best pricing available on the product you want.
How Does It Work
Comparison Shopping Engines or CSEs which are also known as price comparison websites work by showing you the price of a specific product from different retailers so that you can compare the difference in price. When you are shopping you get to see the listings made by the merchants so that comparison becomes easier.
Each listing made by the merchant has a link to the retailer’s website where the final transaction will take place. The merchants will go these comparison shopping engines and upload a shopping feed. This contains the product info for the products they are listing.
That’s how when you search for a product all the necessary details pop up to ensure you get all the required information. Here is an image of the shopping feed from a CSE called ScopePrice.
Are Comparison Shopping Engines Worth It?
In short, the answer is yes. Obviously, not everyone will find success with CSEs especially if you are a retailer. But research suggests that this is the best way to get a profitable return for retailers. As for consumers, this sort of engines provides a great way to find the best prices and deals online.
If you are a retailer with 500 or more types of products, then investing in a comparison shopping engine is worth it. This will make sure you get to provide your would-be customer base with all the necessary information without much of a hassle. These CSE campaigns can be about 5-50% of your online revenue. This seems to be a great opportunity for you to not utilize.
Making The Right Choice
In this era where customer loyalty depends on what you are offering and is your offer better than your competitors. Matching your competitor or offering a lower price may not be a viable option for you always. If you aren’t able to match the prices, then add in some other valuable services that set you apart.
Services like good customer service, discounts, free shipping are services that build on your reputation as a seller online. If you can create a great brand presence, then it will go a long way into creating a good customer base for your product. So, here is a simple rundown of what comparison shopping engines are and how you can benefit from them. Before diving into anything, do make sure that you do ample research and have a clear plan of action.