How to efficiently price products in an e-commerce shop

Tuesday, January 5, 2021 - 3 min read

The utmost influential aspect for a retailer to consider when building an e-commerce shop is product pricing. Besides price tools, you should consider to use some price techniques to properly affirm your e-Commerce shop and simultaneously yield sales.

Pick an encouraging number

Number owns strong power in persuading shoppers to keep on searching. You can choose to display either specific numbers or round numbers in your e-commerce site. Studying your products and the customer’s feelings thoroughly to make the decision.

1. Apply specific price for electronics and tech field.jpg

Apply specific price for electronics and tech field

For instance, your offerings are computers and accessories which are assumed to be practical in nature, specific price will be recommended while a rounded number might let your customer surmise that the price has been made-up with other product’s parts.

2. Rounded numbers used for clothes .jpg

Round number used for clothes

On the other hand, fewer syllables will be applied for emotional-choice products such as clothes or bags. Don’t drive your customers confused and mad by counting the phonetic prices. Rounding off the price will entertain and comfort your visitors rather than the logic-based value strategy!

Similar products but minor different price

3. Slightly different price of similar product.jpg

Slightly different price of similar product

This strategy is advantageous when you offer similar products with different types, for example, chocolate cereal or vanilla cereal. When picking flavor is struggling, price will be of help.

Loss leading price strategy

Loss-leading pricing assumes that a product is sold with ridiculous bottom price compared to market value. The principle of the strategy is complementary and additional purchase. You lost profit of one item but can boost sales of the rest of the products and eventually increase overall purchase. For example, a cheap pillow cover can encourage your customers to look for a new blanket, this means that you successfully stimulate your shopper’s interest and a new door is opened for more sales. Low-CPA products are recommended to be sacrificed to minimize loss.

Clever product organization

This pricing strategy is simple but notable. Put the expensive item on the left and the cheaper ones on the right.

4. Cheaper products at the “right”.jpg

Cheaper products at the “right”

The visitors will be hit by the expensive products, strongly impressed by the low-priced ones, appealed by the feeling of a great-deal achievement and willing to pay.

There are thousands of strategies of product pricing you can apply for your e-Commerce shop but you should be aware that forming an online business requires experimentation. The best one can be one or more of these written here, the smart approach is to set a goal for the campaign, calculate the price carefully and thoroughly study strategies and measure the result.