If there is one thing any eCommerce specialist worth their salt knows, pricing is everything. In fact, two-thirds of consumers do not buy from an online store where they’ve found a better price elsewhere.
So how can an up-and-coming eComm site really get ahead? It’s all about coming up with the perfect pricing strategy. Here are five proven strategies for different business situations.
Think of this as the bread and butter of every ecommerce agency. This strategy is really about catering to your customer's needs and wants and making sure that you get as much revenue as possible from that customer.
With this, an ecommerce specialist needs first to calculate any costs, discounts, or margins that might be linked to the product in question before tagging on your markups.
For instance, let’s say you are selling a number of different things, from clothing to electronics. You should first establish its cost - for example, if you purchase something from China for $10 and sell it for $50. Then, you can add the costs of your shopping platform (for instance, Neto) and any other costs - shipping, advertising, etc.
There are two ways you can go with this strategy, depending on your type of business.
For a B2B digital marketing company, it is using a seasonal pricing strategy to get the best deals — because that's just how customers think. This is especially true if you are offering B2B software and business solutions.
B2C companies, however, are all about keeping customers coming back month after month. So use your pricing strategy to offer seasonal products.
For example, you might want to offer a bundle of products during the holidays or sell discounted items in bulk.
In this strategy, the eCommerce agency owner looks at what their competitors are doing and matches it or beats it. It is a good idea also to provide additional incentives for loyal customers.
The “type of store” pricing strategy is all about targeting a specific market segment and providing them with an unbeatable deal.
In B2B, this strategy is a great idea for companies that work with a supplier-customer model. This works best if you can offer several related services but are not the primary supplier to that particular market.
This pricing strategy is all about creating an offering that is just right for your customer but not for everyone else. For instance, if you know that a certain product will only appeal to a small number of your customers, but those customers will be willing to pay a lot more for it, this strategy is the perfect one.
In fact, according to research from IBM, nearly half of all sales for highly competitive products like luxury goods and business solutions occur in the last four months of the year.
When you're determining your pricing strategy, you mustn't just factor in cost and revenue. On top of that, an ecommerce specialist needs to consider factors like your margins, whether or not you have enough products in a specific niche, how often a client will be coming back, and more.
As an eCommerce specialist, it’s your responsibility to ensure that the goods you offer online are competitively priced. If you succeed, your sales will increase, and your brand will grow.
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