Do you run an e-commerce business online? How do you decide the pricing of your products? Surely, in today’s competitive world, it is crucial to research and analyze the market before making the pricing decision.

Look for ways that motivate shoppers to purchase a product. Meanwhile try considering important factors like quality, design, brand, or price. 

Research reveals that 60% of customers consider pricing as the most crucial factor in deciding to purchase a particular product. If there is a recession, there is a chance of that number going up by 10 to 15% or maybe even more. 

Accurate pricing data 

Most of the customers opt for better prices for making an online purchasing decision. There are several websites and tools for comparison that do it for them in seconds. Do you consider your e-commerce business prices are all correct?

If not, it is essential to change them according to your rivals. Several platforms exist that offer data services, and you must benefit from this data. Ensure making pricing decisions and place a pricing structure, and it will increase the chance of growth. 

Some pricing facts

Certainly, eCommerce shoppers give foremost importance to the pricing factors before making a purchase. Customers want to know they are getting the best price available before placing an order. 

Top brands change prices of items every minute and customers are always keeping an eye out for discount schemes. 

For those e-commerce businesses who are thinking to implement a customer loyalty program, here are a few facts and figures that research has found. 

• Price comparison tools are a source of 20% e-commerce traffic
• The competitive factor brings price changes in 73% of eCommerce stores
• Top retailers constantly change prices
• Lower prices motivate 54% of shoppers to purchase leftover items in the shopping cart
• If your e-commerce store recreates price comparison, 46% of shoppers will appreciate it
• Discounts compel 23% of shoppers to purchase while 41% search for promotions
• 60% of females go for a better pricing deal

Pricing strategy

Pricing strategy is crucial as it affects your revenue potential. Adopt different pricing models and plans. Keep a vigilant eye on these models and make a change immediately when needed.

To yield a unique product, you may set premium pricing higher than your competitors. It applies where there is little competition. For the price-conscious consumer, you may adopt the economy pricing feature. Set up psychology pricing to motivate emotional buyers. 

In bundle pricing, you sell some products collectively at lower prices. Moreover, run promotional campaigns and offer bundle packages.

Teamwork

Team members should know the pricing facts that you follow. Decision-makers have to train their e-commerce managers, accountants, and sales teams to be aware of analysis and to get leads through pricing data.

You have to adopt a more focused and research-based route to increase your e-commerce sales. It is a known fact that price data analysis can help you a lot. In this complex e-commerce scenario, you must help everybody in your team to focus on pricing matters.

Research has shown us several times that shoppers consider prices and compare different e-commerce websites concerning costs.

Pricing decision making

Our decision-makers don’t have the power to deal with the difficult economic situation. Online retailers are no exception. They do not understand it is crucial to consider pricing factors.

Retailers have to consider internal costs and competitors’ pricing a critical thing to discuss. They have to keep in view different pricing factors while deciding on any changes to the pricing structure. They have to have an eye on their rival’s pricing move. 

Pricing analysis has to take the front seat and one has to be vigilant about competitors’ pricing and performance. It is a daily task for a decision-maker.

Now that they have data, your rivals are working, and shoppers are browsing online e-commerce stores to purchase items. You do not have much time. You will win or lose the customer in minutes.

Promotional schemes

Almost all consumers check their emails daily and purchase during discount schemes. Also on some days, there are a lot of discount campaigns, cashback rewards, and other offers.

You may adopt this strategy to engage customers by giving them cash back rewards or discounts. You may target different customers according to their interests and demography.

However, one of the main factors that motivate your customers to come to your website and make a purchase is promotional offers and schemes. 

To make your e-commerce business runs smoothly, implement NextBee’s Loyalty Solution ideal for brands to increase their customer base. It helps most companies to expand:

• Customer base, retention, and acquisition through a rewards system, loyalty campaigns, et cetera
• Smart admin dashboard gives you complete control over your campaigns and to handle user’s profiles
• Running loyalty campaigns are a cost-effective way of growing your business and allow loyal customers to spend more money

Pricing changes 

It doesn’t always have to be that a change in prices will have adverse effects. You need not change the prices of the whole catalog. You should customize your pricing on a product by product basis.

It’s completely fine to lower down or increase prices based on market data. You must continuously keep an eye on purchase data and change the price immediately based on this data.

Top brands change their prices every three minutes on average. Why not you? Higher than usual prices cause lower business growth, and you lose customers. Therefore data is vital for this strategy.

Team communication

It is required to have a communication system among your team members, vendors’ suppliers, and customers support specialists.

When you have to make a pricing strategy, inform all of them, and get their opinion. Pricing is essential to finances. They have an impact on your customers’ relations. 

Conclusion

We have discussed, how e-commerce businesses grow by making pricing decisions based on purchase data. Collected facts that have found that pricing is the first factor that causes the customers to make a purchase. 

You may have a permanent data updating system and price comparison tool. With these tools and after analyzing competitors’ moves you may take the pricing decision. 

NextBee can help you make running your E-commerce business a smoother affair and make your pricing decisions simpler.