{"id":8437,"date":"2021-11-10T12:58:57","date_gmt":"2021-11-10T12:58:57","guid":{"rendered":"https:\/\/smarter-ecommerce.com\/blog\/en\/?p=8437"},"modified":"2022-05-20T07:00:34","modified_gmt":"2022-05-20T07:00:34","slug":"price-intelligence-2","status":"publish","type":"post","link":"https:\/\/smarter-ecommerce.com\/blog\/en\/ecommerce\/price-intelligence-2\/","title":{"rendered":"Price intelligence: How our report detected a scammer"},"content":{"rendered":"\r\n<p>At smec, we not only specialise in online marketing campaigns. Instead, we take a holistic approach to improving our clients&#8217; ecommerce efforts. In this endeavour, we employ price intelligence reports to compare our clients&#8217; product prices to prices of their competitors.<\/p>\r\n\r\n\r\n\r\n<p>Price intelligence reports, however, are not only a valuable tool to optimise product price strategies in an increasingly tough ecommerce environment. They also help retailers to identify scammers who create fake web shops to capitalise on their traffic, while harming their performance and brand image.<\/p>\r\n\r\n\r\n\r\n<p><strong>Today, I will thus explore:<\/strong><\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li><a href=\"#Link1\">What is healthy competition in ecommerce and how important is it?<\/a><\/li>\r\n<li><a href=\"#Link2\">How to spot scammers by utilising price intelligence reports<\/a><\/li>\r\n<li><a href=\"#Link3\">Advantages of price intelligence reports<\/a><\/li>\r\n<li><a href=\"#Link4\">What can be done to avoid falling prey to scam pricing?<\/a><\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/smarter-ecommerce.com\/blog\/en\/ecommerce\/price-intelligence-2\/#what-is-healthy-competition-in-ecommerce-and-how-important-is-it\" >What is healthy competition in ecommerce and how important is it?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/smarter-ecommerce.com\/blog\/en\/ecommerce\/price-intelligence-2\/#how-to-spot-scammers-by-utilising-price-intelligence-reports\" >How to spot scammers by utilising price intelligence reports<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/smarter-ecommerce.com\/blog\/en\/ecommerce\/price-intelligence-2\/#advantages-of-price-intelligence-reports\" >Advantages of price intelligence reports<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/smarter-ecommerce.com\/blog\/en\/ecommerce\/price-intelligence-2\/#what-can-be-done-to-avoid-falling-prey-to-scam-pricing\" >What can be done to avoid falling prey to scam pricing?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"Link1\"><span class=\"ez-toc-section\" id=\"what-is-healthy-competition-in-ecommerce-and-how-important-is-it\"><\/span>What is healthy competition in ecommerce and how important is it?<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p>Healthy competition is a surefire driver for growth in any industry. Most of our retail clients also have a strong idea in mind about <em>where<\/em> they\u2019d like to position themselves in the market landscape. This ranges from best price guarantees to high quality brands deliberately going for a premium price strategy.<\/p>\r\n\r\n\r\n\r\n<p>On <strong>average<\/strong> though, the <strong>distribution of prices per product<\/strong> compared to the average competitor looks something like this for most of our clients:<\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"660\" class=\"wp-image-8416\" src=\"https:\/\/smarter-ecommerce.com\/blog\/en\/wp-content\/uploads\/2021\/10\/Price_Intelligence_1.png\" alt=\"Price intelligence report: Average price difference between customer and all competitors\" srcset=\"https:\/\/smarter-ecommerce.com\/blog\/en\/wp-content\/uploads\/2021\/10\/Price_Intelligence_1.png 1024w, https:\/\/smarter-ecommerce.com\/blog\/en\/wp-content\/uploads\/2021\/10\/Price_Intelligence_1-300x193.png 300w, https:\/\/smarter-ecommerce.com\/blog\/en\/wp-content\/uploads\/2021\/10\/Price_Intelligence_1-110x70.png 110w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\r\n\r\n\r\n\r\n<p>What does that tell you? Most of your products are priced about the same as the average competitor, and roughly the same amount of products are a bit cheaper \u2013 or a bit more expensive. Sure, there are some outliers where you\u2019re up to 60% cheaper or more expensive, but these <strong>outliers are low in quantity<\/strong> and could be caused by promotions or other irregular effects.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\" id=\"Link2\"><span class=\"ez-toc-section\" id=\"how-to-spot-scammers-by-utilising-price-intelligence-reports\"><\/span>How to spot scammers by utilising price intelligence reports<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p>When analysing the distribution of prices per product for one of our clients in the pharmaceutical industry, the distribution looked strangely skewed:<\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"542\" class=\"wp-image-8420\" src=\"https:\/\/smarter-ecommerce.com\/blog\/en\/wp-content\/uploads\/2021\/10\/Price_Intelligence_2.png\" alt=\"price intelligence: Chart which analyses number of products and price difference\" srcset=\"https:\/\/smarter-ecommerce.com\/blog\/en\/wp-content\/uploads\/2021\/10\/Price_Intelligence_2.png 1024w, https:\/\/smarter-ecommerce.com\/blog\/en\/wp-content\/uploads\/2021\/10\/Price_Intelligence_2-300x159.png 300w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\r\n\r\n\r\n\r\n<p>Mind the bar at 0.60 (e.g., \u201c40% more expensive than the competition\u201d) which contains almost 40 products. So, what\u2019s going on there?<\/p>\r\n\r\n\r\n\r\n<p>We noticed one competitor who has a large overlap with our clients assortment and is almost exactly 40% cheaper:<\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"531\" class=\"wp-image-8422\" src=\"https:\/\/smarter-ecommerce.com\/blog\/en\/wp-content\/uploads\/2021\/10\/Price_Intelligence_3.png\" alt=\"price intelligence: average price difference for competitors\" srcset=\"https:\/\/smarter-ecommerce.com\/blog\/en\/wp-content\/uploads\/2021\/10\/Price_Intelligence_3.png 1024w, https:\/\/smarter-ecommerce.com\/blog\/en\/wp-content\/uploads\/2021\/10\/Price_Intelligence_3-300x156.png 300w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\r\n\r\n\r\n\r\n<p>Competitor data for <em>praxwelt.com<\/em> shows a significant overlap of shared products (11.6% or 118 products) with an even greater price difference. Competitor <em>medplus<\/em>, by comparison, only appears on the list with an assortment overlap of 8.4% and 2.5% cheaper prices.<\/p>\r\n\r\n\r\n\r\n<p>So, who are these folks? Turns out, <em>praxwelt.com<\/em> is a scam shop, trying to rip off unassuming customers according to <a href=\"https:\/\/www.watchlist-internet.at\/liste-betruegerischer-shops\/shop\/praxweltcom\/\">Watchlist Internet<\/a> and others:<\/p>\r\n\r\n\r\n\r\n<div class=\"wp-block-image\">\r\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-8425\" src=\"https:\/\/smarter-ecommerce.com\/blog\/en\/wp-content\/uploads\/2021\/10\/Price_Intelligence_4.png\" alt=\"\" width=\"499\" height=\"512\" srcset=\"https:\/\/smarter-ecommerce.com\/blog\/en\/wp-content\/uploads\/2021\/10\/Price_Intelligence_4.png 998w, https:\/\/smarter-ecommerce.com\/blog\/en\/wp-content\/uploads\/2021\/10\/Price_Intelligence_4-292x300.png 292w\" sizes=\"auto, (max-width: 499px) 100vw, 499px\" \/><\/figure>\r\n<\/div>\r\n\r\n\r\n\r\n<p>When we discussed the competition insights with our client, they pointed out that they are aware of <em>praxwelt.com<\/em>, as well as other scam shops that popped up in their vertical recently. Covid-19 and resulting buying frenzy for face masks, gloves, disinfectant etc. seems to have made this industry particularly attractive for scammers.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\" id=\"Link3\"><span class=\"ez-toc-section\" id=\"advantages-of-price-intelligence-reports\"><\/span>Advantages of price intelligence reports<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p>Of course, detecting scammers is not the only reason why retailers may want to set up automated competitor price monitoring. Here are some other important use cases we see with our clients:<\/p>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-8872 size-large\" src=\"https:\/\/smarter-ecommerce.com\/blog\/en\/wp-content\/uploads\/2022\/04\/pricing-intelligence-1024x834.png\" alt=\"advantages of pricing intelligence reports\" width=\"650\" height=\"529\" srcset=\"https:\/\/smarter-ecommerce.com\/blog\/en\/wp-content\/uploads\/2022\/04\/pricing-intelligence-1024x834.png 1024w, https:\/\/smarter-ecommerce.com\/blog\/en\/wp-content\/uploads\/2022\/04\/pricing-intelligence-300x244.png 300w, https:\/\/smarter-ecommerce.com\/blog\/en\/wp-content\/uploads\/2022\/04\/pricing-intelligence.png 1324w\" sizes=\"auto, (max-width: 650px) 100vw, 650px\" \/><\/p>\r\n\r\n\r\n\r\n\r\n\r\n<p>But back to our case:<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\" id=\"Link4\"><span class=\"ez-toc-section\" id=\"what-can-be-done-to-avoid-falling-prey-to-scam-pricing\"><\/span>What can be done to avoid falling prey to scam pricing?<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p>Our client pursues every legal path that\u2019s available to take the page down. But unfortunately new shops pop up faster than the authorities are able to act. <strong>Continuously monitoring the market<\/strong> for scam shops, however, often resembles a tedious game of whack-a-mole for our clients.<\/p>\r\n\r\n\r\n\r\n<p>Using the <strong>Competition Insights<\/strong> capability in our <a href=\"https:\/\/smarter-ecommerce.com\/en\/dynamic-price-automation\/\"><strong>Dynamic Price Automation technology<\/strong><\/a>\u00a0though, at least parts of that can be automated. Whenever a new competitor with a large product overlap and price difference pops up you can be notified via email. In the future, we plan to add external signals: shop ratings, customer reviews, input from consumer protection agencies and watchlists. So, spotting bad actors will become easier for those who do play by the rules. <strong><a href=\"https:\/\/smarter-ecommerce.com\/en\/pricing-engine\/#get-in-touch-now\">Contact us<\/a><\/strong> to learn more.<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>At smec, we not only specialise in online marketing campaigns. Instead, we take a holistic approach to improving our clients&#8217; ecommerce efforts. In this endeavour, we employ price intelligence reports to compare our clients&#8217; product prices to prices of their competitors. Price intelligence reports, however, are not only a valuable &#8230;<\/p>\n","protected":false},"author":80,"featured_media":8882,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-8437","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ecommerce"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.7 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Price intelligence: How our report detected a scammer - smec<\/title>\n<meta name=\"description\" content=\"Price intelligence reports help retailers to optimise product prices in a tough ecommerce environment \u2013 and to identify scammers. \ud83d\udc4a\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/smarter-ecommerce.com\/blog\/en\/ecommerce\/price-intelligence-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Price intelligence: How our report detected a scammer\" \/>\n<meta property=\"og:description\" content=\"Price intelligence reports help retailers to optimise product prices in a tough ecommerce environment \u2013 and to identify scammers. \ud83d\udc4a\" \/>\n<meta property=\"og:url\" content=\"https:\/\/smarter-ecommerce.com\/blog\/en\/ecommerce\/price-intelligence-2\/\" \/>\n<meta property=\"og:site_name\" content=\"smec Blog | Follow current Ecommerce News, Trends &amp; 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