Median price refers to the price of the product at the midpoint of your data set.
For example, if there are 100 products currently sorted by the lowest to the highest price, the median refers to the price of the 50th item listed.
This information is being used to establish the price difference of one category compared to other categories, such as when launching a new category to venture into.
For example, If your usual products are dresses and you now want to stock tops, analyse the difference in median price to determine the market’s perceived value for the new category. For example, tops are usually priced lower (approx 20-35% lower) than dresses, which must be considered when pricing a new category.
Below are common use cases using “Median Price”:
How do I review competitor’s pricing strategy across different categories
How do I review competitor’s pricing strategy?