5 Most Effective eCommerce Pricing Strategies For Your Business

ECOMMERCE PRICING STRATEGIES - HOW TO PRICE PRODUCTS IN 5 EASY WAYS 5 MOST EFFECTIVE ECOMMERCE PRICING STRATEGIES FOR YOUR BUSINESS CST-BASED PRICING Cost-based pricing is a simple and most commonly used strategy.Cost + Desired Margin = PriceBut is it that easy? For eCommerce, it is trickier than the normal retail pricing because there are many hidden costs that sellers fail to consider. In offline businesses, every payment is visible and noted. TARGET RETURN PRICING Target return pricing is a riskier strategy for small businesses and individuals. It is a strategy where the eCommerce store will set a price that would give them profits only if a specific quantity is sold.lt requires serious calculations and confidence to sell a specific amount of products. This is the reason why eCommerce giants like Amazon and Flipkart operate on target return pricing strategy. VALUE-BASED PRICING Value-based pricing is where the customers feel the right value for handing over the money to buy your products.Rolex sells the watches, and so does any other brand. Similarly, Nike sells the shoes, and so does Gucci. But what makes the price difference so high? The brand! COMPETITIVE PRICING Competitive pricing is the most common strategy in any market. From road-side vendors to large companies, it is visible everywhere.Pick up your nearest competitors and spy on their pricing strategies. Once you get all the data, price your products equal to them or less than them. REAL-TIME PRICE OPTIMIZATION Real-time prize optimization is the best strategy for eCommerce websites to implement along with other methods. It involves reducing or increasing the prices of your products based on the ongoing situation or time. www.cpcbusiness.com %24