{"id":9769,"date":"2016-08-02T10:54:26","date_gmt":"2016-08-02T09:54:26","guid":{"rendered":"http:\/\/www.repricerexpress.com\/?p=9769"},"modified":"2024-12-13T10:18:03","modified_gmt":"2024-12-13T10:18:03","slug":"3-ecommerce-pricing-strategies-get-ahead","status":"publish","type":"post","link":"https:\/\/www.repricerexpress.com\/3-ecommerce-pricing-strategies-get-ahead\/","title":{"rendered":"3 Ecommerce Pricing Strategies to Get You Ahead"},"content":{"rendered":"

If you\u2019ve ever shopped for anything<\/em> in your life, you know just how important price plays a role in the decision, especially when you\u2019re torn between two similar products or vendors. On the flip side, as the merchant, you have the power to make that decision easier for your buyers \u2014 but only if you follow RepricerExpress<\/a>\u2019s advice with these solid ecommerce pricing strategies.<\/h4>\n

Strategy 1: Avoid Getting Seduced by Immediate Gratification<\/h2>\n

Your goal as an online merchant is to increase your profit margins as much as possible while streamlining your costs, no? And in a world where the landscape shifts more than the weather at the British Open<\/a>, you\u2019ve got to have patience and think of your long-term plan.<\/p>\n

More so, one of the biggest factors you\u2019ve got to keep in mind is what your long-term<\/em> costs will look like when setting present-day<\/em> profit margins. While the approximate equation (more revenue than cost), the details are a tad more complex. So, how do you make it work?<\/p>\n

Implementing the strategy:<\/strong> Jot down the following figures and add them up.<\/p>\n

    \n
  • How much each item costs from your supplier<\/li>\n
  • What it costs to ship each batch to you<\/li>\n
  • How much you\u2019ll have to pay per time period to store your inventory<\/li>\n
  • What it\u2019ll cost to market and advertise those items for those time periods<\/li>\n
  • How much salary you pay your staff (and what you need to take home to survive)<\/li>\n
  • What you pay to host your site<\/li>\n
  • How much is in your budget to acquire and retain customers<\/li>\n
  • Anything else you can think of<\/li>\n<\/ul>\n

    After that, calculate the figure that works for you for your profit margin (i.e. 10%, 30%, whatever works for you and\/or is achievable for your inventory) and work out the difference to arrive at the median price you need to be attaching to the item. This isn\u2019t a final, fixed figure, but rather one that you can work up and down from so you don\u2019t over- or under-value your items.<\/p>\n

    Strategy 2: Let Supply-and-Demand be One of Your Driving Principles<\/h2>\n

    This can either be a huge boon or a test of patience for you, depending on the temperature of the market. But you really need to listen to what supply-and-demand is telling you, or else you can be left in the dust while your competitors are gobbling up your profits because guess what? Your customers are the ones who actually dictate what each item costs by either buying it or not.<\/p>\n

    If you\u2019re selling a hot holiday item that really appeals to kids, then go ahead and raise the cost to take advantage of the season. But if you\u2019re dealing with something like generic-brand items that appeal more to spendthrifts and are more readily available, you have to adjust your prices to match that.<\/p>\n

    Implementing the strategy:<\/strong> Ask yourself the five \u2018W\u2019 questions:<\/p>\n

      \n
    • Who are my buyers?<\/li>\n
    • What am I selling\/giving them?<\/li>\n
    • Where are they looking to get this product?<\/li>\n
    • When do they need it?<\/li>\n
    • Why should they choose me?<\/li>\n<\/ul>\n

      Once you\u2019ve identified these answers, you\u2019ll be better able to understand the motivation behind their purchases and appropriately adjust your prices to go with the supply-and-demand flow.<\/p>\n

      Strategy 3: Strip Your Competitors of Any Pricing Advantages<\/h2>\n

      Once you\u2019ve researched exactly how to best appeal to your buyers, the next step is to remove as much advantage as in your competitors\u2019 corners as possible. Hey, if you can leave yourself as the last merchant standing, then it\u2019s a pretty foregone conclusion that consumers will naturally spend with you.<\/p>\n

      Luckily, the answer to this is ridiculously straightforward: repricing. Aaand, here\u2019s how to make it work for you!<\/p>\n

      Implementing the strategy:<\/strong> First and foremost, you\u2019ve got to find an app that really suits your personality, style and needs. Out of unbiased obligation, we\u2019ve got to say that there is more than one to choose from. But really, if you\u2019re looking for that unicorn repricer that does everything short of preparing breakfast, then RepricerExpress<\/a> is it for you.<\/p>\n

      Look, one of your main goals is to know when your competitors change their prices so you can beat them by enough to lure shoppers over to your side, right? And you don\u2019t want to spend unnecessary time doing that, so you need a program that\u2019ll take care of the boring stuff for you so you can triple your productivity. But to go one step further, keep track of your competitors\u2019 prices over various timespans so you can see their<\/em> pricing strategies, and compensate for the software\u2019s subjective knowledge by using your own to make those subtle, game-changing decisions.<\/p>\n