5 price mistakes to avoid in your ecommerce

06/04/2017

Angela de la Vieja

One of the most important challenges in an ecommerce is to fix adequate prices to the products in each moment. Valuing together the product costs, their value and the competitor prices can be a more complicated task than it seems.

Its obvious that for fixing product prices for your eccomerce, first you need a pricing strategy adjusted to the characteristics and objectives of your online shop. However, at the time of executing it, there are 5 errors that many ecommerce commit again and again, both in terms of the competition and the relationship with the potential customer. Do you want to know what they are?

1. Underpricing. Reducing prices always results to be more attractive to the consumers, but, to which point can you make offers? Bear in mind that in the price of your product the costs, the shipping costs and the VAT will influence; with this figures in mind you can play above or below, but always with control. Pricing software that reflects the benefit you get with the product at any given time can help you to have a clearer view of your prices.

2. Permanently copy the competition. Is it worth changes your products prices every time you competitor does? If the difference is not as important as to have an impact on your ecommerce, it’s better to contain the profit margin. Keep in mind that your customers aren´t just motivated by the prices in your shop, but also by values such as trust and transparency.

3. Skip the consumer impression. How much would your potential customers pay for your product? Remember your client’s aren´t going to pay more for your product just because it seems to be exclusive, there should be a clear value proposition that differentiates it enough from other products to make them attractive. And on the other hand, the same thing happens; few clients would pay less than they thought a product was worth, as an abysmal difference in price with your competition may generate mistrust or reluctance as to the actual quality of the product.

4. Modifying prices before campaigns or sales. Putting prices up and down before these discount times can make you stand out with your potential customers and your competition. In your pricing strategy you must have those dates well located to plan the price changes in the calendar without anyone being able to question your transparency.

5. Having insufficient data on competitive prices. At this point you should be clear on two variables: how to monitor the prices of the competition and which brands can really compete with yours.

First of all, to monitor the competition in real-time, it is imperative to have price intelligence software. Manual monitoring can overlook some data from other brands and vendors that may not have been on your list of competitors.

And secondly, from this list of potential competitors, you must be clear which companies can really be the competition in your market. Doing online price tracking with brands that are not relevant to your business can cause you economic loss and damage to your company image.

So now you know, if you want to avoid unwanted surprises, keep in mind these 5 common mistakes - easily avoid ed- before modifying your ecommerce prices. You will see how quickly you begin to consolidate your pricing strategy.

11/11/2022

Consumer behavior: How can behavior tracking be effective for setting the right pricing strategies?

Behavior tracking is becoming massively popular today. As a result, pricing strategies born from studying consumer behavior are a merchant's dream come true. If done right, it can conquer every market for the business quickly. With abundant data available, the strategic makeover of the pricing models is becoming easy for companies.

What is behavioral tracking, and how is the data beneficial in pricing?

For a quick understanding, behavioral tracking refers to gaining in-depth knowledge and insights into consumers through their web data. Their browsing habits, spontaneous decisions, shopping interests, and preferences come under behavioral tracking.

How can enterprises use customer behavior data?

Companies can use customer behavior data as a tool to strengthen their hold on the market. A customer’s preferences, values, and tendencies allow businesses to work in sync with them through the collected data. Apart from this, customer behavior can also aid in:

Tailoring customer needs for customer retention

Personalization is becoming the heart of a company’s growth. No matter in which area an enterprise is functioning, tailoring the services, products, and solutions is becoming increasingly crucial. Uniqueness and personalization attract the crowd like no other.

Increasing the overall value

One of the best ways customer behavior data affects a business is by upgrading the value of customers for the business. The customer’s characteristics allow the company to target the people that match the business prospects well.

Optimizing every type of content

Everything that is up for digital display requires content. You must have seen companies unveiling their products or services through advertisements and making the initial public appearance. Two essential sales strategies – upselling and cross-selling comes through content optimization.

Pricing Strategy

Last but certainly not least is the influence of customer behavior data on the pricing strategy. The pricing strategy essentially constitutes content derived from data analysis. Companies need to have a dynamic approach to the pricing system to attract the right customers.

17/02/2015

Saint Valentine’s Day, always a good opportunity

V-Day is looming, a long-awaited date for all and also a good occasion for the eCommerce. According the study conducted by Prosper Insights and Analytics, it is forecasted the average consumer expense that day will be the highest in last years. Furthermore, 25% of them will buy online, which means an increase of 4% regarding 2014 (The US department of Commerce). This is, therefore, a key date where market competitiveness increase and which could be assumed as a big opportunity for our business or, a big fail if we do not adopt the correct strategies.

How to turn this event into an opportunity? To achieve this goal, we need to adapt our prices to this hostile environment, i.e. we need to develop an appropriate Dynamic Pricing strategy that allows us to adapt our prices to the variations produced in supply and demand and to position us ahead of our competitors. In V-Day, the frequency in changes will be higher, carrying it out each hour or even each minute. It is estimated that 65% of leader retailers have the ability to respond quickly at these variations, such Amazon. For this reason, it acquires great importance the correct use of a software specialised in price motorisation of competitors. Do not miss the time and adapt your business to new adversities.

28/12/2022

Which are the best footwear marketplaces to sell on?

Footwear marketplaces are booming. The last decade has seen the launch of new specialized marketplaces with millions of different users. Among them are Spartoo, Sarenza and Farfetch, portals with international reach. Their main value is that they unite hundreds of footwear brands, as well as offering clothes and accessories. Although each has its own characteristics, they are all vertical marketplaces, i.e., they focus on a specific area, and their sales categories are interrelated. For sellers, these portals provide an opportunity to expand sales channels and drive the globalization of their e-commerce business. We explain how to sell on these footwear marketplaces so that you can assess whether they align with your plans for the future and then start defining a possible pricing strategy.