With the influx of the internet, e-commerce has become the main market for many businesses and brands and its popularity is increasing every year. From direct contact with customers to gigantic market access, e-commerce is offering a wide array of benefits to the brands but there is one key aspect of the digital presence that every business needs to take care of and that is price optimization.
For ideal price optimization, every firm out there needs hard data to build an approach on and gain both the trust of customers and the market share. But do you know that even Ip geolocation can improve price optimization strategy? Keep reading to stay illuminated.
Meeting price legislations
Tax rates can change according to clients, states, and nations and if you fail to comply with these tax rates then it can directly affect your price margin and thus you will never be able to increase your profit. But when you detect city by IP through IP geolocation, you can easily find out who customers are buying from.
After coupling this data with the dynamic pricing, you can adjust the regional pricing to compensate for the tax rates. By using this simple method, you can easily avoid any type of overcharging, especially in those regions where the system of low tax rates is followed.
Anticipating customer needs with regional deals
It’s true that if you follow a system of personalized marketing then you can always get better results but you can level up the game of advertisement by simply anticipating which products are in high demand in a specific region. After this, you can start offering discounts on the basis of the IP matching with those regions.
For example, if you are in the clothing business then you must be aware of the fact that colder regions have higher demands of heavy garments, and therefore when you detect city by IP, you can offer discounts on the basis of the location of the people living in the colder region.
Facing local competition
When you are running an e-commerce store then in addition to the other online stores, you have to face competition from the physical retailers as well and this is what makes things more challenging. And physical retailers have better knowledge about customers and they can offer price change accordingly, they have an advantage over your online presence.
But you can level the playing field when it comes to the challenge faced by physical retailers by offering dynamic pricing throughout the different regions as following a static pricing structure will make your business lose customers to all the physical retailers in your city.
Smarter clearance sales
Clearance sales are the best tool every brand has when it comes to pushing, slow-moving, excess goods. But, in this case, the decrease in profit can sting even if it is a better idea than leaving the products unsold on the shelf.
With the help of IP geolocation, you can always find out in which regions of the states, the products are doing well and where they aren’t. Then you can read the customer accordingly and offer or adjust prices as per their preference. In addition to this, you can also set up a clearance discount on the basis of the region and avoid a sudden decline in profit.
IP geolocation equips brands with all the vital information they need to offer an optimized price to their customers and this is why equipping the marketing and sales team with tools of IP geolocation is no more an option rather it has become a necessity.