How To Build a Price Comparison Site for Competitive Pricing Analysis

Online shopping behaviour depends on a myriad of factors – location, interests, age, gender, etc. – but all online customers compare prices to get the best option for their budget. That’s when competitive pricing analysis platforms come into play. With them, users can get all the needed info in a few clicks without a long manual web search.

Review and comparison websites have revolutionised product search to the point where users can find the best offer within a few minutes. As a business person, you can profit from people’s natural desire to get the best in the market.

A well-thought-out product comparison website with advanced features and functionality can earn you money in many ways, from classic ads to affiliate commissions to featured listings and more.

Without any further ado, let’s dig into how to build a successful price comparison site that will stand out in the highly competitive online shopping landscape.

What Is the Purpose of Comparison Shopping?

The main aim of comparison shopping is to gather every available vendor for a chosen location. For each party involved, shopper comparison sites have different purposes:

• Сustomers can weigh the pros and cons of similar products against one another since shopping comparison sites have user-friendly interfaces.
• Retailers can get increased exposure and a credibility boost by being listed on web comparison sites.
• Owners of product comparison websites can earn money from listing fees, affiliate commissions, lead generation, and content monetisation.

Fortunately, the online shopping market is immense, with plenty of room for various online price comparison services. So, you can become the owner of a small local site or expand your business to the nationwide level. Users will appreciate such a diversity of comparison services.

The Competitive Pricing Analysis Websites To Look Up To

Before you start building your own comparison shopping engine, it’s worth examining industry leaders. As of the end of 2023, the UK’s most popular price comparison websites were Comparethemarket, GoCompare, Confused.com and MoneySuperSmart. It is safe to say that they are one of the best price comparison websites since more than 80% of UK residents use those services.

Here’s the full comparison shopping portals ranking by Statista:

Source: Statista

Luckily for you, you don’t need to compete with these giants. As we previously said, the e-commerce market is so big that you can easily find your niche and launch your own successful comparison shopping engine tool.

How To Build a Price Comparison Site: Step-by-Step Instructions

Step 1 – Identify Your Niche

To choose your niche properly, try the following practices:

• Explore the competition: Traditionally, people search for products at online marketplaces, in-store browsing, and search engines & brand websites. The easiest markets to launch a product price comparison are those with constant high demand, such as electronics, fashion, home appliances and beauty products. B2B products, healthcare, finance, and travel niches can be challenging for new price comparison site owners.
• Provide unique value proposition: Find at least one dimension where you are better than competitors and market it as a crucial feature for pricing comparison websites. Build marketing around your unique value proposition, such as price change notifications. Other features should complement it.

The best way to create a sticking value proposition is by accurately addressing customers’ needs. Speaking of which, more than 40% of digital buyers in the UK reported that their main purchase driver for online shopping is free delivery. Another typical purchase driver is the absence of hidden fees.

• Target buyer: Even though review and price comparison tools have diverse audiences, you should understand your buyers’ demographics, psychographics, location, and other details.

Choosing a niche for your price comparison site can be much easier once you choose a comprehensive shopping behaviour analysis tool like HitMetrix. By leveraging the power of web analytics and data visualisation, HitMetrix unlocks the buyer persona in real-time across all touchpoints and interactions.

 

Step 2 – Choose Your Revenue Model

The proper revenue model for your comparison shopping website allows you to earn as much as possible while giving freedom to partners and providing a convenient experience for users.

4 Best Price Comparison Website Monetisation Models

Featured Listings	Regular product listings are free on most price comparison sites, but you can leverage the comfort of paid listings to display partner products on your homepage, at the top of the search, and in other prominent places.
Affiliate Commissions	Affiliate marketing is a traffic monetisation model that brings most of the revenues to websites for price comparison. You can monetise any action, from traditional clicks and purchases to registrations, impressions and any other action of the lead.
Advertising	A time-proven monetisation option for most price-comp sites. You can monetise your traffic in traditional ways as long as your core offering – your product listings and search – is valuable.
Subscription Fees	It suits shopping comparison sites that provide personalised recommendations, exclusive deals, or other unique features your competitors don’t have. However, you should be aware that most users ignore the potential subscription and use only the free version of the service.

Step 3 – Empower Your Price Comparison Site With Advanced Features

Despite fierce competition, it is still possible to set your shopping comparison site apart from the competitors:

Idea 1 – Present Your General Idea on the Homepage

You have only around 8 seconds to catch users’ attention before they leave you for good. So, the homepage should be useful and look nice. The human brand processes images 60,000 times faster than text, so you don’t need a lot of words on shopping comparison websites.

The developer team of Confused.com was aware of the specifics of the human mind. That’s why one of the first things that users see on their homepage is a bunch of clickable pictograms that reveal the core categories of this service. Once users click on pictures, they will be taken to the specific comparison page.

Source: Compare.com

Idea 2 – Go the Extra Mile with Search Filters

While people look for something on price comparison websites, they usually want to find the cheaper analogue of their favourite product. They need to fine-tune the search to ensure that they find the perfect match. You should provide technical solutions for it, giving them as many search filters as possible without ruining the user experience.

PriceRunner product price comparison website is a great example of in-depth search filters. At first glance, they look like an Amazon-like marketplace, so their users will intuitively know where to search for their favourite product.

Source: PriceRunner

Once a user opens the needed category, they can narrow the search even more, including product height, weight, and colour.

Idea 3 – Capitalise on Social Proof

Social proof is crucial for any marketing campaign, but it especially benefits comparison pricing websites. Users are likely to choose products that other customers trust.

Here are some statistics:

• 87% of customers won’t buy from a business with a rating lower than 3 stars
• 92% of customers feel hesitant to buy from a business without customer reviews
• The average shopper expects to see 112 reviews for the researched product

When shopping online, users naturally look for a social proof of their choice. Social proof can be leveraged by integrating reviews, ratings, certifications, and real-time data like trending or popular products. For example, PriceRunner features popular products and searches to highlight the most wanted items.

Meanwhile, Which? shares the most popular expert-written articles among their users. That way, this price comparison business leverages the power of expert reviews and social proof simultaneously.

Source: Which?

Choose the social proof type that suits your niche and positioning. There is no one-size-fits-all answer when it comes to websites to compare prices.

Idea 4 – Add Expert Reviews if You Can

With only 3% of customers trusting salespeople and only 62% trusting companies in general, it’s crucial to provide an unbiased, trustworthy opinion on your products. They will make any price comparison more professional.

Here is how PriceRunner implements user and expert reviews on a product page:

Source: PriceRunner

Idea 5 – Leverage Coupons

Despite coupons known as the “American thing’, UK citizens adore this shopping practice. Over 70% of shoppers are willing to try a new product or brand with a coupon. You can use it to your advantage whether you are a seller or the owner of the product price comparison service.

Coupons can increase the traffic to your website, boost user engagement, and even improve conversion rates. However, we recommend you develop a reasonable couponing policy and collaborate only with authorised vendors. That way, your potential clients will be sure of the quality of the goods they can purchase using your price comparison search engine.

Idea 6 – Incorporate Direct Sales

Not so many competitor price comparison websites allow on-the-spot purchases. Adding this feature to your service can give you an unprecedented competitive advantage. It’s one of the rarest comparison website features, which makes it so much needed among potential customers.

Be prepared to negotiate with every merchant on your platform. If you have a small niche website for price comparison, it won’t take long. Meanwhile, if you have hundreds of merchants, the negotiation process may take weeks or months.

Idea 7 – Match Customers With Service Providers

Online shopping isn’t limited to products, and the best comparison sites already provide you the opportunity to explore various services. There are tons and tons of services you can aggregate, connecting customers with matching service providers.

A great example of a service aggregator website is MoneySuperMarket. Initially, they were the insurance comparison site. Later, they expanded to money services, business services, and utility deal comparison.

Source: MoneySuperMarket

If the user wants to compare insurance deals, they need to provide MSM contact information and specifics of their case. That way, MoneySuperMarket can gently collect insurance leads, which they can sell to local insurance providers later.

Source: MoneySuperMarket

Step 4 – Take Care of the Technical Side of Your Platform

It takes time and patience to create the best website for comparing prices. It’s important to gather as much technical data as possible to make this process more precise. Building a comparison platform may take months, as it’s better to do everything carefully without forcing events.

Ensure you can pull data from online stores and represent it on your website when comparing offers from different shops. The most popular features of price comparison software include API, scripts, data feeds, and on-demand quoting.

Third-Party Data Collection for a Price Comparison Site

Method	Pros	Cons
API Integration	Automatic data collection with structured data	Not all online shops provide API integration
Web Scraping	Automatic data collection from any online shop without permission	If dove without permission, it could be illegal
On-Demand Quoting	Product data from target online shops based on the customer’s quote	Requires a communication channel and takes time
Data Feeds	Structured, importable data	The data might not be fresh

Step 5 – Analyse Your Performance

Launching a website that compares prices is just the beginning – the rest is much about tracking your performance and adjusting accordingly. Now, with dozens of performance metrics, you need a robust tracking and analytics system that screens the customer journey and decodes user behaviour insights into a thriving business plan.

Phonexa does it on a very high level. Comprising eight performance and affiliate marketing solutions, Phonexa examines each aspect of the buyer journey to help you close marketing loops and draw more customers.

 

The unique suite of performance marketing management software includes:

Get your comprehensive software suite starting from only £250 a month, or schedule a free consultation to learn more about Phonexa.

Frequently Asked Questions