Product Category Competitive Price is a feature that helps merchants determine the best competitive price and therefore increase sales of products from specific categories. By using this feature you can set the allowed range of price reduction (0-50%) for products from certain categories.
How It Works
Lets show how this feature works with this example:
You upload a product from the category "Electronics", with a $11 price. You see that other merchants upload the same product from the same category, but the price is $10.
You decide that you want to increase the number of orders and activate the feature by setting 15% as the price reduce range for products from the "Electronics" category. Once you did it, the Joom platform will check all the active products from the selected category and compare the similar product prices.
The system calculated that the product costing $11 requires a price reduction for 15% or less in order to have the most competitive price.
|The product||The product price||The price reduce rage||The final product price|
|"Electronics" category||$11||15% (or less)||from $9.35 to $10|
Here is an example of the merchant results after activating Category Competitive Price feature:
Feature activation date: 20.05.2019
⚠️ PLEASE NOTE:
Before April 13 2020 while calculating the final sum for the price cutback within the «Competitive Price Reduction» the formula included the product price and the shipping price (for offline shipping).
After April 13 2020 the new calculating mechanism will exclude the shipping price, so as to only include the product price.
Category Competitive Price Rules
- All merchants can use it;
- Category Competitive Price has no timeframe;
- You may choose an unlimited number of categories at once;
- You may change the price reduction range any time;
- The price reduction range must be a positive integer and cannot exceed 50%;
- You may check the daily reports on weekdays;
- The final product price update takes one working day;
- You cannot select the specific product to set a competitive price for.
How to Participate?
- Go to this page;
- Enter Merchant ID;
- Enter Merchant Login E-mail Address;
- Click on the "Search" button.
If you don't know your Login E-mail or Merchant ID, please read the article "How to Find Your Credentials".
How to Set an Allowed Price Reduction Range?
To set the price reduction range for products in a certain category, carefully enter the allowed range in the corresponding field - between 0% and 50%. The bigger the price reduction range is, the more products will be involved in the promotional activity.
While the final competitive price for certain products may be changed based on the results from comparing similar product prices and other factors, it cannot exceed the range established by the merchant.
It will take one working day to introduce the updates and reflect the final product prices on Joom.
When the Product Price Cannot be Reduced?
- If in order to have the most competitive price, the required price reduction exceeds the one merchant set, the product price cannot be reduced.
- If the product price is competitive enough compared to the similar products' price, the product price cannot be reduced.
How to Check Current Allowed Ranges?
Changes to price reduction ranges require one day to update the product price on Joom. To check the current allowed ranges, enter your credentials here.
How to Check the Results?
You should enter your credentials here to check the Category Competitive Price feature's daily and weekly reports. Joom strongly recommends you to check weekly reports only after using the feature for one week.
|Orders Last Week||The total amount of orders within a certain product category during the last week.|
|Orders Current Week||The total amount of orders in a certain product category during the current week.|
|Change||The ratio of order amount within last week to order amount within current week, shown in percentage (%).
The positive result shows that order amount increased in comparison to the last week.
The negative result shows that order amount decreased in comparison to the last week.
|Avg. Price Reduction Last Week/Current Week||The average price reduction during the last/current week. "0.00%" average rate shows that price for certain category wasn't reduced via this promo.|
⚠️ PLEASE NOTE:
- All orders (approved, fulfilled and cancelled) are included in the total number of orders;
- Daily report updates only once a day on weekdays; feature weekly report updates every week;
- Even though there is no allowed price reduction range set for a certain product category, you can see our system calculations of the total number of orders in the reports.
How to Stop Using This Feature?
In order to stop using the feature you should change all the allowed price reduction ranges to "0". The feature will be deactivated within one day.
What if the Competitive Price Reduction and Joom Ads overlap?
Both formulas will include only the product original price.
For example, there is a product with the following conditions:
|Product Original Price||Competitive Price Reduction||Joom Ads Payment|
In this case the calculation formula will present the following equation:
$1 (Original Price) - $0.1 (Joom Ads Payment) - $0.1 (Competitive Price Reduction)