Düsseldorf, July 2019: Positioning in search engines, price search engines and on platforms determines the relative turnover of goods in online trading. Position 1 attracts three times more customers than position three. The first five suppliers share ¾ of all sales of an article. These are “old” facts on the Internet – simple, immutable truths that have been established for years. With artificial intelligence of Aimondo each on-line shop can position itself completely above the competition.
Who knows the Internet, knows that there are established constants – for years, even in this fast medium. This includes knowing the economic significance of the result position after entering keywords. Little has changed in this respect in the last twenty years. Only the fact that paid advertisement was hardly recognizable earlier in the search machines such as Google, Yahoo, Bing or on price search machines and was misinterpreted by the users frequently as fair result. This has changed since 2013. At that time Heinrich Müller and Manfred Peters achieved a worldwide clear identification of paid advertising by big players such as Google, Yahoo or Microsoft.
Only the influence of mobile devices such as smartphones and tablet computers has caused a slight shift in click habits. As the first two “organic” results are usually displayed together on the small screens, they converged. From the click figures one can quite legitimately derive the sales distribution as a result of the position. More visitors mean more sales – this is comparable to the direct connection between a triple A location in conventional retailing and a shop in a side street.
The top position on the Internet is reached by a top offer. This is made up of the best price in the context, such as the price of a good product, the delivery time, the delivery costs, the terms of payment and the reputation of the seller. Always in comparison with the competing offers of the competitors. In the virtual world, as in real life, the most accurate, complete and up-to-date knowledge of the competition is decisive for the design of the offer. Already the Chinese strategist Sunzi, who lived around 500 B.C., is credited with the sentence: “If you know yourself and the enemy (note: the others), you need not fear the outcome of a hundred battles”.
Aimondo’s core competence and the worldwide unique selling proposition of Artificial Intelligence consists of searching the entire network for competitor offers, fully automatically checking, analyzing, weighting and processing offers as a condensed result to always up-to-date re-pricing. In this way, the best results are achieved. This allows an entrepreneur to make the most effective offer and take the desired position in product searches. But just as important: by exploiting previously untapped reserves in pricing, even better margins can be achieved. Each percent more margin means on average more than 7% more profit. Per product. This is crucial in the tough competition in the increasingly transparent online world.
Heinrich Müller, Managing Director of the Düsseldorf subsidiary of Aimondo AG from the canton of Appenzell in Switzerland, explains: “From my point of view, it is negligent for a company in the online business to refrain from thoroughly checking the data quality and its completeness in order to compare re-pricing services. All that follows is mathematics, the result of algorithms and commercial experience. We at Aimondo have Artificial Intelligence in the system core, the research module of our fully automated SaaS tool for highly effective Re-Pricing. With algorithms, an entrepreneur determines which pricing strategy he derives from the more than 99% complete and accurate basic data”.
It is the completeness that determines the quality of the decisions to be made. Data must be found intelligently. Results must not depend solely on simple table functions such as the presence of unique numbers. We can quote Donald Rumsfeld, a personality who is valued worldwide: “… because as we know, there are things we know. We also know that there is something unknown that we know is unknown. We know that there are things that we do not know. But there are also things that we don’t know we don’t know.”
The Aimondo system closes these gaps in knowledge in online trading.Back to News