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Retail Intelligence: How CPG is driving US ecommerce growth

June 3, 2013
Written By

Recent reports have suggested that US ecommerce revenues are expected to total $259 billion in 2013, a 14.8% annual increase over 2012. One of the two biggest categories for growth in US ecommerce is CPG, with automatic replenishment programs, broader product selection and faster and low-cost delivery creating the growth. With Amazon looking to grow its grocery business, what should online retailers be doing to attract the price-conscious shopper and stay ahead of the competition?

Online CPG sales are predicted to reach $32 billion in the US by 2017 as a new generation of tech-savvy consumers increasingly demand the convenience that online grocery shopping delivers. Indeed, the CPG category is ranked as having the second highest compound annual growth rate behind Apparel and Accessories according to eMarketer.

Yesterday Reuters reported that web giant Amazon is planning a major rollout of an online grocery business that it has been quietly developing for years. The company has been testing AmazonFresh in its hometown of Seattle for at least five years, and is now planning on expanding its grocery business to Los Angeles and San Francisco later this year. Some reports suggest Amazon may launch in 20 urban areas in 2014, including some outside the US.

This move towards a growth in CPG shopping online, coupled with Amazon’s expansion plans into this burgeoning area, means that retailers increasingly need to better understand the pricing and assortment strategies of their competitors. As shoppers look for value and convenience, an effective competitive pricing strategy is critical for any online retailer:

  • Keep track of your competitors: Automated real-time pricing intelligence tools such as Profitero will enable you to keep track of the prices and promotions of your direct competitors, and allow you to meet or even beat the competition on price
  • Be competitive on price: To be attractive to today’s price conscious shopper, be prepared to meet consumer demand and offer the right prices on popular products
  • Have the right product assortment in place: You need to ensure your stock inventory is competitive, so keep abreast of which products your competitors offer and identify products you don’t currently stock but which you may wish to add to your website
  • Use Price Intelligence tools: Tools such as Profitero allow you to monitor the competition with ease, helping you to adjust your price, promotion and assortment strategy 24/7.

To find out how Profitero is working with leading CPG retailers such as Tesco, Waitrose and Ocado to achieve smarter pricing and grow sales, contact us at

Profitero: web based competitor monitoring for retailers and brands

About Profitero

Pricing intelligence company Profitero provides retailers with actionable price intelligence data, monitoring over 50 million products across 4,000 eCommerce retailers every day, observing pricing, promotions and stock availability. We work with the world’s leading retailers, enabling them to acquire new customers and grow profit margins by monitoring and responding to changes in competitor pricing and promotional activity as they happen. For more information on Profitero price intelligence and competitor monitoring, visit or email

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