Definition:
Competitive repricing automatically adjusts product prices based on competitor price movements. This strategy helps merchants maintain competitive positioning without manual monitoring.
Why It Matters:
- Keeps prices aligned with the competitive landscape.
- Prevents loss of sales due to outdated pricing.
- Automates reaction to competitor price changes.
Example:
When a competitor reduces the price of a product from $100 to $95, a competitive repricing rule adjusts the merchant’s price to remain within the defined pricing strategy.