Google launched the program named price competitiveness in Google Merchant Center in February 2020 and currently, it’s running in a beta version.
Most of the users do not know how to utilize the price competitiveness program and have no idea what it does.
One of the main things about it is that it will help you make a decision with respect to your product prices to make it competitive.
I will help you go through all the Features of the Google Merchant Price Competitiveness program and how you can utilize it to make a decision for your product pricing.
Firstly, how will you enable this program?
This program is available for all without any prerequisite eligibility. It will help you to get access to retail insights and also to improve your product selection and pricing decisions on Shopping ads.
You can enable this Price Competitiveness program as follows:
- Go to Growth option on your left side in merchant center
- Then go to manage programs.
- There you will see the last option with the name Market Insights program.
- Just click enable then it will get enabled.
Let’s know what’s Merchant Price Intelligence?
Google merchant centre price Intelligence helps you to know how market’s prices affect your buyers purchasing decisions as a consequence of the same company’s or ad account performance. Price Intelligence data will be used to optimize the pricing strategy and make the strategy to have more competitive pricing and boosting sales and profitability.
How will you access the Price Competitiveness report?
You have to visit your Google Merchant Center account. On the left sidebar, you will have primary tabs:
- Tap on the Growth tab to get the Price Competitiveness report.
How will you analyze Price Competitiveness report?
First, you should need to know about Primary metrics of Price Competitiveness reports. There are few metrics that are interesting despite being pretty rare.
Average product price is the average price set shown on the auction bid.
Benchmark product price is the weighted pricing average of the product that got impressions at the time of auction. This is the product sales price, unlike the average product price, it takes into account all the advertisers that had shown ads during the auction.
Benchmark product price difference is the difference between our sale price with respect to the market’s average price (benchmark product price).
- Price Competitiveness Main screen.
Here in this Main screen panel, the Price Competitiveness report shows a chart that gives an idea of your product position in the market.
- Yellow Graph: Product sales price was higher than 1% of the reference price.
- Magenta Graph: Product sales price was equal to the reference price.
- Green Graph: Product sales price was lower than 1% of the reference price.
- Blue Graph: For this segment, Google doesn’t have enough data to show your product status in the market during this period.
- Price Competitiveness “Group by” section
Right under this chart, you will see these sections that show your position in the market with respect to various sections under “group by”. There are four aspects:
- Product: see metrics on an SKU level.
- Category: It is probably a listing based on Google categories level.
- Brand: listing by product’s brand you have entered in the feed.
- Product type: this listing shows the competitiveness according to the product type as per your website product type.
You can click and get some of these options to have access to subgroups.
- How will you analyze each product?
To get a fully detailed overview of the competitiveness of each product, you need to select the product group by product option. Once selected, you will have access to a report that shows the following columns:
- Product type
- ID:this is the SKU code for each product.
- Clicks: clicks obtained during the chosen time range.
- Your price/Current benchmark price: that means your price and the average price.
- Current benchmark of the price difference
- Historical benchmark of the price difference
Here in this tab, you will get the information from which you could determine whether the pricing strategy you are running is actually useful for you or not, so you could optimize which products to display on shopping ads or product listing ads.
Some Benefits of Google Merchant Center Price Competitiveness
Following are the main benefits:
- It’s a free tool that allows you to assess your competitiveness by product, brand, product type, or SKU, in a very approximate way.
- You can detect brands and categories in which you are not competitive enough.
- It provides you with quite detailed information on each product.
We advised you to utilise this helpful resource of merchant centres of Price Competitiveness. This will help you in making the decision to set the Competitive product price.