There you will find countless ecommerce price listing strategies adopted and implemented by many online business owners. If you do not successfully grab the right approach for pricing your product, you might damage the customer view about your product or brand.
Knowing the right way of pricing before getting into business is most important; otherwise, you may easily collapse even before standing up properly with your business. You must know how to combine the cost, profit, and your customer’s in-depth psychology as well as your competitors’ approaches.
What should we know really about e-commerce pricing strategies? Let’s get to know seven successful strategies through the journey of this article –
Single and bundle products strategy
A single product sells online could be difficult some time if the price isn’t reasonable. But pairing it with a related needing product in a bundle or package could bring more attention and raise your sale. How?
For instance, a single but good brand toothpaste with a little high price could be challenging to sell. And the same goes for a toothbrush as well. But, what if you combine that two in a bundle and lower the price a little. It can make the customer think of buying the bundle to save money instead of buying individually and pay full price.
Now, the question is – how can you apply the formula still having your profit? Simple as it is. Raise the two products prices reasonably a little higher individually so that you can lower the price while applying the theory for bundle offer.
Knowing human psychology – Psychological or Charm Pricing
You certainly have noticed the bizarre odd prices like 2.99$ or 299$. But why not using a rounded value $3 or $300? A scientific experiment was successfully held by Universities of MIT and Chicago in 2005 regarding this pricing issue in which how human psychology works. And the result was quite astonishing.
It was found that the number 9 has a numerical influence on market pricing. Using this 9 by lowering just one cent or one dollar instead of putting a rounded number on price tags creates an astounding impact upon the human brain. Instantly, a person tends to think of saving money by purchasing that product.
In reality, you are not losing your profit at all, but by adopting this psychological trick, you can raise your sale undoubtedly.
Draw a visual price difference – Anchor Pricing
This anchor pricing is another game of psychology. How? Bringing an example can clear the whole thing quite easily. In 2010 in a press conference, Steve Jobs announced that the price of a first-gen Apple iPad coming soon in the market and the price was supposed to be 999€ but Apple decided to make it 499€ eventually. That statement brought a massive opportunity in the future sale of the product.
You have to make your customers visualize the possibility of saving money and gain more at a comparatively cheaper price. You can create a chart of offers just increasing the benefits of purchasing the product at a larger scale. For example, you are creating a chart for a 5$ product – buy one in 10$, buy two in 17$ and buy 3 in 23$. See you are selling 3 by decreasing the price only 7$ yet keeping 8$ profit in your pocket successfully.
Know your competitors – Market Based Pricing
What is market-based pricing? With a simple example – the whole thing about market-based pricing will be crystal-like clear to you.
You are selling a product along with two others in the market. Your price is $50, another selling the same thing in $75 and the other $78. You can just raise your price to $70 yet having the best profit and sale as well as competing for the market successfully.
There are 860,000 to be exact ecommerce companies currently existing in the market. And your customer does research and compare prices before buying something online. So keeping the update information of your competitors’ product prices can bring you great success in the business.
Loss Leader Pricing
Often we see that an e-commerce site selling its one or two products in the loss but still they are successfully doing business. Why and how they are doing it?
This is known as loss leader pricing. Selling one product in loss brings traffics to your site and increases the sale rate automatically. This loss-leading product is used as a bait to attract customers. Simple yet considered an amazing strategy. And nowadays it’s becoming popular too.
Premium or Prestige Pricing
It’s about targeting customers those find pleasure and feel strong self-esteem by purchasing something unique no matter what the price is. To successfully execute this strategy you must ensure quality, reliability, and uniqueness of your product.
Besides that, be certain you are the only one capable in the market to provide such level of product to your targeted customers. And there is no substitute for the product in the market as well. This way you can easily run your business and have enormous profits.
What if your customer decide what price to pay
It is surely a very risky strategy yet found success in large scale. But not applicable to all the products you are selling. You can apply this theory only when you find a product piled up for a long time or the sale is going unexpectedly slow that might eventually come up with a loss for you.
This is a warning for you beforehand, and think a hundred times if you are about to implement this strategy on a particular product sale. It can save you from loss as well as bring attention to your site far better than any marketing strategy can do for you.
You already have realized how e-commerce pricing works and what role it plays behind a successful business. With the right strategy, you can shine like a star in the sky of the e-commerce market. We hope you have found this article a huge help in your future endeavors. Wish you all success…