Knowing your competitors’ prices is essential for success. Gain a competitive edge by using competitor price tracking on Google Shopping to:

Increase Sales: Identify pricing sweet spots to attract more customers without sacrificing profit margins.
Optimize Pricing Strategy: Make informed decisions about pricing based on real-time competitor data, maximizing your return on ad spend.
React Quickly to Market Changes: Respond to competitor price adjustments and seasonal trends to stay ahead of the curve.

This guide explores various methods to track competitor prices on Google Shopping, from free built-in tools to advanced solutions.

Data-Driven Insights: How Pricing Impacts Google Shopping Performance

We analyzed over 6,500 products across various industries to uncover pricing strategies that drive conversions.

Key Findings:

Price vs. Conversion Rate: Generally, lower prices lead to higher conversion rates, but it’s not the only factor.
Psychological & Marketing Factors: Brand reputation, perceived value (e.g., BOGO offers), and a user-friendly interface can influence purchases even at higher prices. Overhead costs may also justify higher pricing.
Understanding Customer Value Perception: It’s crucial to communicate the added value customers receive for a higher price point.

how prices affect conversions on google shopping — How Competitors Price The Same Products on Google Shopping

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Your Google Shopping pricing optimization strategy should be based on the following:

Price Comparison Data: Utilize price factors (product price vs. market average) to set targeted bids based on conversion potential compared to competitors.
Custom Labels for Granular Bidding: Group products by price factor (low-priced, mid-priced, high-priced) for customized bidding strategies.
Automated Bidding with Machine Learning: Consider AI-powered tools like BrightBid to forecast optimal bids for each product and maximize return on ad spend.

It’s important to consider other factors that influence conversions:

Product Consistency: Clear product descriptions, consistent sizing charts, and well-defined shipping policies are essential for successful conversions.
Timing: Price adjustments might be necessary depending on factors like sales seasons, competitor pricing shifts, or clearing out slow-moving inventory.
Context matters: Low conversion rates on expensive products may not be a cause for concern if overall sales goals are met. However, investigate persistently low conversions for low-priced items.

By combining competitor price data with your product feed, you can use price factors to set more granular bids. This involves grouping products into custom labels based on their price competitiveness. For example, you could create labels for “low-priced,” “mid-priced,” and “high-priced” products. With this data, you can then:

Set bids manually based on the custom label.
Create separate ad campaigns for different price groups, allocating your budget towards products with higher conversion potential (e.g., low-priced items).

why stores have higher product prices on google shopping — Why 50% of Stores Have Higher Product Prices on Google Shopping

what products sell better on google shopping — What Products Sell Better On Google Shopping

How to Use Price Comparison in Feed Optimization

Uncovering Your Competitor’s Pricing Secrets on Google Shopping

Knowing your competitors’ prices on Google Shopping is a game-changer. It empowers you to fine-tune your pricing and bidding strategies, ultimately driving more sales. But how do you peek behind the curtain? Here’s a breakdown of your options:

Price Competitiveness Report in Google Merchant Center: Use this free tool that helps you see how your product prices compare to other sellers on Google Shopping. It gives you a snapshot of your pricing competitiveness for each product you sell on Google Shopping.
Price Alerts (if available): This is a basic option for occasional monitoring. Set alerts for specific products, and you’ll receive notifications when prices change. However, it might not be suitable for extensive tracking.
Third-Party Tools: Dive deeper with a variety of third-party competitor price tracking tools. These tools often offer features like:

Detailed price history to see trends and patterns.
Competitor analysis beyond just price, including ad copy and promotions.
Integrations with your existing eCommerce platform for seamless data flow.

The best solution depends on your specific needs. Ask yourself:

How many products do I need to track? For a small handful, price alerts might suffice. For a larger catalog, consider third-party tools.
Do I need historical data or just current prices? Some tools offer price history for in-depth analysis.
Am I comfortable with third-party tools? Consider your comfort level with integrating external tools.
Do I have the technical resources for an API? APIs offer advanced tracking but require technical expertise.

Competitor price tracking on Google Shopping is a powerful tool for optimizing your pricing strategy. By choosing the right method for your needs, you’ll gain valuable insights to stay ahead of the curve.

The key is to leverage competitor data to inform your own pricing decisions while considering your brand value, product quality, and overall marketing goals.

Let’s take a look at the list of solutions you can use to monitor competitors’ product prices on Google Shopping.

1. Using Competitor Price Comparison in Google Merchant Center

merchant center price competitiveness report

Comparing prices across Google Shopping Ads is a powerful way to see if your current pricing and bidding strategy is working or needs to be optimized.

You’ll see how other companies price the same products you sell by obtaining a click-weighted average price on each product. This data can be used to see what works best for your competitors when it comes to the pricing strategy that’s driving clicks for this product or that one.

Use the built-in Price competitiveness report within Google Merchant Center to gain valuable insights into competitor pricing. This report provides you with:

Your Average Product Price: See how your product’s price appears to your target audience compared to competitors in auctions.
Benchmark Product Price: This reveals the average click-weighted price for your product across all merchants running Shopping Ads for the same item.
Benchmark Price Difference: This metric calculates the percentage difference between your average price and the competitor benchmark, allowing you to identify potential price adjustments.

Bear in mind that while competitor pricing is a powerful tool, it’s just one piece of the puzzle. Remember to factor in your profit margins, product quality, brand reputation, and overall marketing strategy when making pricing decisions.

You can access the “Price competitiveness report” within the Growth tab of your Google Merchant Center account. This report equips you with the data you need to make informed pricing decisions and optimize your Google Shopping Ads for success.

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2. Advanced Option: Track Google Shopping Prices with an API

Track competitor prices on Google Shopping with a web scraping API (if you’re tech-savvy). These APIs automate price tracking, focusing on Google Shopping results for cleaner data. They generate reports and offer optional price alerts, but require technical knowledge to set up (in-house development, outsourcing, or pre-built services). Choose this option if you have the resources, otherwise explore simpler methods like price alerts from other tools.

3. Simplify Tracking with Ready-Made Tools

Don’t have the technical expertise for an API? No problem! Several ready-made product price tracking tools simplify competitor monitoring on Google Shopping.

Benefits of Ready-Made Tools:

Effortless Setup: Unlike scraping APIs, these tools require minimal technical setup. They’re pre-configured and ready to use, saving your development team valuable time.
User-Friendly Interface: Forget complex code. These tools typically have intuitive dashboards and clear features, making price tracking accessible for everyone.
Automation Powerhouse: Many solutions offer automation features like automatic data collection and reporting, streamlining your workflow and saving you time.

Ready-made tools are ideal for businesses who value convenience and ease of use. They offer a powerful alternative to technical solutions, allowing you to focus on analyzing competitor data and making informed pricing decisions.

4. Limited Use Case: Google Shopping Price Tracking

While Google offers a built-in price tracking feature for product price drops, it’s primarily designed for consumers, not businesses. It can be useful for:

Tracking Local Competitors: If you have a limited number of competitors in a specific area, you can track specific products they sell.
Monitor Price Drops: It can help identify specific price drops on a limited number of competitor products.

Limitations for Businesses:

Manual Setup & Monitoring: Each product’s price tracking needs to be set up and monitored individually, making it cumbersome for large-scale tracking.
Limited Notifications (US Only): Price drop alerts are delivered through the Google app (US only) and require manual data collection for record-keeping.
Unscalable for Large Inventories: This method quickly becomes impractical for businesses managing hundreds of products.

Alternatives for Businesses:

Free Browser Extensions: For a small number of products, consider free browser extensions that offer basic price tracking functionality. These can be a good option for businesses with limited budgets or those just starting with competitor price tracking.

Consider Paid Tools or Scraping APIs (with technical expertise):

These offer features like automated data collection, broader geographic coverage, and detailed reporting, making competitor price monitoring more efficient and insightful.

Learn more about setting up price drop monitoring here.

Choosing the Right Competitor Price Tracking Method for Google Shopping

In conclusion, keeping a pulse on competitor prices on Google Shopping is a powerful tool for online businesses. This guide explored various methods, from free built-in tools to advanced solutions.

Here are the key takeaways:

Competitor price tracking empowers you to optimize pricing strategies, maximize return on ad spend, and stay ahead of the curve.
Google Merchant Center’s Price Competitiveness Report offers valuable insights for free.
Third-party tools provide advanced features like price history and competitor analysis, but require investment.
Free browser extensions can be a good option for businesses just starting out or with a small product catalog.

Remember, the best method depends on your specific needs. Consider factors like the number of products you sell, the level of detail you require, and your technical expertise. By choosing the right approach, you can gain valuable competitor data to inform your pricing decisions and drive success on Google Shopping.

Choose the method that best suits your needs and start tracking your competitor prices.

Also, see these blog posts for more tips on Google Shopping optimization: