eCommerce Pricing Strategy – 3 Website TipsLast Updated: February 11, 2019
When establishing your eCommerce store, an important and often ignored factor is what price one should sell their products at. Pricing requires a willingness to experiment as well as a natural feel for how you want your brand and products to be perceived.
eCommerce Pricing Strategy Tips for 2019
Here are a few basic concepts that could come in handy while putting your products on the world wide market.
eCommerce Pricing Strategy Tip 1. Keystone Pricing
Keystone pricing is the act of creating a 50% markup. A retailer would take the cost they paid for the wholesale products and determine the price for individual products this way. If your products tend to have a slow turnover or higher shipping and handling, you might be able to mark the prices even higher. Alternatively, if they are easily available in other store, keystone pricing can be harder to get away with.
eCommerce Pricing Strategy Tip 2. Simple Pricing Calculation
The most simple of pricing formulas is used to specify what the exact price for your products might be. In many instances you’ll want to change the percentage mark-up for a specific item, and you can do that easily with the below formula.
Retail Price = [(cost of item) ÷ (100 – markup percentage)] x 100
eCommerce Pricing Strategy Tip 3. Anchor Pricing
Psychological pricing is an interesting thing in business. In anchor pricing, the original price of a product acts as a reference point for customers who then compare it with the listed marked down price. You can take advantage of anchor pricing by placing a higher priced item next to the cheaper ones to draw the attention of the customer towards it.
eCommerce Pricing Strategy Infographic
Pricing can be a great incentive for some consumers to buy your products, but it takes more than that. Here’s an infographic showing some other facts about winning sales. The Infographic dates from 2014, but the underlying truths it represents are timeless for devising an eCommerce pricing strategy.
Download this infographic.