Automating Pricing For Europe’s Biggest Online Kids’ Store
Babymarkt.de is Europe’s leading online shop selling baby and children’s supplies. Represented in 15 countries across Europe and China, it has 15 online stores as well as six branches in the North Rhine-Westphalia region of Germany.
The company opened its first branch in 1989 and grew to become the largest online supplier of baby goods in Europe, now achieving average annual growth of 30% and generating sales of $181.37 million (USD).
Priding itself on its efficiency of service and fair, family-friendly prices. Babymakt.de now has more than 500 employees and sends out an average more than 10 000 packages per day (over 2 million a year) containing products from its huge portfolio (over 100,000 items).
Time-Consuming Processes Bogging The Pricing Team Down
It was when Babymarkt contacted Pricefx for a tender regarding competition data, mistakenly thinking this was our offered service, that they learned about our pricing solution and what it could do for them.
Babymarkt’s pricing team had been managing pricing in Excel. And while their pricing efforts and results were good, their processes were very time intensive.
Pricefx offered the perfect solution to help free their pricing team from manual processes, so they became customers in February 2018.
Pricing Automation To the Rescue
Several of Babymarkt’s online stores now benefit from accurate pricing updates and automated rules-based pricing.
Automated processes include:
- Import of Babymarkt data (Item master data, Sales data, etc.)
- Retrieval of competition data from Metoda’s PriceAPI
- Rules-based pricing calculations within the Pricefx platform
- Export to the ERP system
The team uses the price parameter table to define certain aspects (like exchange rate, shipping fees, etc.). It stores and manages MasterData and Product Extensions (country-specifics, min and max price) in PB and imports competition data from Idealo, Google Shopping via Metoda PriceAPI.
Prices are now automatically calculated based on elasticity data at the product group level using Price Logic to calculate prices based on customer requirements per product, per variant and per country.
Reduction in Manual Processes
Pricefx has helped Babymarkt.de accomplish its objective of reducing the manual workload of its pricing team and speeding up processes.
Employee productivity has increased and price calculation is now a lot faster. In fact, 95% of the pricing team’s previous activities are now automated with Pricefx. The team still performs manual checks for recalculations.
Babymarkt.de now has a tailor-made solution configured specifically to meet the company’s specific business requirements. It has better control over all aspects of its pricing lifecycle, can leverage Pricefx’s easy-to-use and accurate pricing calculations, and is able to execute fast price adjustments.
“Pricefx helped us bring our pricing to the next (automated) level.”
Jan Friedemeyer, Head of project management, pricing and ERP