Ivan Rédey HOw does automation work in e-commerce?

1. How does automation
work in e-commerce?
Rédey Ivan
Country manager
2019. május 30., Budapest

3. Main challenges for webshops in 2019?

4. Manufacturers and distributors in 2019?
Marketing costs
increase every year
Price spiral
Not enough skilled
people on labour
market

5. How can Dataweps help?

6. WE FOCUS ON PRODUCT ANALYTICS
AND AUTOMATION FOR ONLINE RETAIL

7. Differences in data analytics
Customer & Product analytics are complementary
Works only on your website/store
You need to have customer data
GDPR
Your product are sold by 3rd parties
Focus on product performance
No GDPR
ONLINE CUSTOMER ANALYTICS ONLINE PRODUCT ANALYTICS

8. Deep dive to what we do
Price
Monitoring
Competitors
Monitoring
Product
Promotion
Automation
Pricing
Automation
Web
Scraping
Product
Feed
Sales
Data
Market
Sales
Data
Business
Rules
Business
Rules
Margin,
Stock
...
Client

9. Deep dive to what we do - price monitoring
Product
Feed
Web
Scraping
Sales
Data
Market
Sales
Data
Business
Rules
Business
Rules
Margin,
Stock
...
Client
Price
Monitoring
Competitors
Monitoring
Product
Promotion
Automation
Pricing
Automation

10. Price monitoring
Core features
- Enterprise Solution
- 14+ European Markets
- High frequency scraping
- Automatic pairing
Core features for Brands
- Minimum advertised price (MAP) monitoring

11. Azor benefits
• We adapt the inputs and outputs to your exact requirements
• We offer alerting and price development on analytical dashboards
• We can monitor prices every 10 minutes, give you complete history
• We can automatically match the right products without the need for manual inspection
• We deliver data primarily from direct monitoring of e-shops

12. Deep dive to what we do - TrendLucid
Sales
Data
Web
Scraping
Product
Feed
Market
Sales
Data
Business
Rules
Business
Rules
Margin,
Stock
...
Client
Price
Monitoring
Competitors
Monitoring
Product
Promotion
Automation
Pricing
Automation

13. Core features
- Enterprise Solution
- 2 European Markets
- Daily granularity
- Automatic pairing
Competitors Monitoring

14. Product analytics
Products
DataClient
Market
Sales
Data
Client
Crawler,
Pairing
Competitor Sites

15. Deep dive to what we do - Beed
Product
Feed
Web
Scraping
Sales
Data
Market
Sales
Data
Business
Rules
Business
Rules
Margin,
Stock
...
Client
Price
Monitoring
Competitors
Monitoring
Product
Promotion
Automation
Pricing
Automation

16. Deep dive to what we do - Pricing Automation
Product
Feed
Web
Scraping
Sales
Data
Market
Sales
Data
Business
Rules
Business
Rules
Margin,
Stock
...
Client
Price
Monitoring
Competitors
Monitoring
Product
Promotion
Automation
Pricing
Automation

17. Anyone bought an airline ticket recently?

18. What about mobile phones?

19. And pet food?

20. How does the majority of webshops
set up and evaluate their product prices?

22. WE HAVE PURCHASE PRICE
IN EXCEL

23. WE HAVE PURCHASE PRICE
IN EXCEL
WE MULTIPLY THIS NUMBER
BY 1,5 AND THAT’S OUR
SELLING PRICE

24. WE HAVE PURCHASE PRICE
IN EXCEL
WE MULTIPLY THIS NUMBER
BY 1,5 AND THAT’S OUR
SELLING PRICE

25. Is this way of pricing effective?

26. Is this way of pricing effective?
No

27. Why?
For strong products you’re too cheap. For weak
products you’re too expensive.

28. Price optimization can massively increase profit.
How?

29. 100 Eur 10 Eur

30. 100 Eur
105 Eur
+ 5 %
10 Eur

31. 100 Eur
105 Eur
+ 5 %
10 Eur
15 Eur
+ 50 %

32. NOW YOU’RE TALKING!

33. How to join the party?
How do we start automating the prices?
And how do we measure it?

34. 1. Are your marketing channels optimized?
2. Do you have a pricing strategy?
3. Do you have necessary data?
4. What tools are you going to use?
5. Who’s going to take care of price optimization?
5 questions before you start optimizing

35. 1. Price analytics
Current state of market/competition
Analysis of biggest opportunities/threats
2. Pricing models
Ideally dynamic pricing based on
market/competition and strategy
3. Impact analysis
Assessment of strategy
Discovery of new opportunities
Price optimization process

36. _ Get a good business intelligence (GA is bad)
_ Questions that you should be able to answer
Does our current pricing fulfill our strategy?
Where are the biggest opportunities?
Where are the biggest threats?
How do our prices affect our sales?
How do competitors’ prices affect our sales?
Where is competition most/least active?
Which variables are the most important?...
_ Segment by category/manufacturer/...
1. Price analytics

37. _ Rule based pricing
+ Use of your know-how. Easily measurable.
- Some rule based strategies are just pushing price down.
0 < orders at least
_ Machine learning based pricing
+ Easy to set up. Automatically does analytics for you.
- At least tens of thousands of monthly orders. It is a blackbox.
10.000 < orders at least
2. Automated pricing models

38. _ Increase price for products that are cheaper than competitors
_ Decrease price if the product is too expensive and isn’t selling
_ Change price based on a dominant marketing channel
_ Increase/decrease price around limit for free shipping
_ Keep price at the cheapest competitor’s level for sales drivers
_ Increase price if no competitor has a product in stock
Example of dynamic rules

39. _ Which questions you should be able to answer
How do our customers react to changes?
Was the change successful?
How did competitors react to our changes?
What did we learn about market?
3. Impact analytics

40. _ Increase price if no competitor has a product in stock
1 or more competitors
My price: 20 EUR, orders: 195
Margin: (20-10) x 195 = 1950 EUR
0 competitors - increase 5 EUR
My price: 25 EUR, orders: 180
Margin: (25-10) x 180 = 2700 EUR
0 competitors - increase 10 EUR
My price: 30 EUR, orders: 100
Margin: (30-10) x 100 = 2000 EUR
Example of impact analytics

41. _ Make sure you’re ready
Basic store optimization, data, processes, people
_ Prepare data & analytics
Google Data Studio, Power BI, Tableau, ...
_ Set up pricing rules
Start with a few simple ones
_ Go!
… and don’t forget to measure
Let’s wrap it up

42. CHEERS!

43. THANK YOU!
Ivan Rédey és Honza Mayer
www.dataweps.com
redey@dataweps.com