How much does price influence in online shopping?

12/04/2017

Angela de la Vieja

As consumers, we know that one of the main factors that influences us at the time of buying a product is the price. We constantly try to find the most attractive offer, which meets all the requirements we seek at the best possible price. But is it the only thing we have in mind when making an online purchase?

From the retailers point of view, the most widespread belief is that the absolute value of the price is the only factor that interests the customers, that the cheaper the product, the better. But the truth is that there are elements that influence the perception of the price before the decision to buy online.

The key is in the image that the user has of an ecommerce through their prices and competitor´s prices. In the digital environment there are 3 factors that directly influence this perception: the discounts and promotions, the value for money and the transparency of the ecommerce.

Discounts and promotions

Always be the cheapest or to have the best offers? It is important to know from the outset what position the brand wants to achieve with its pricing strategy. In many cases, a timely offer from an online store that has become a reference for the user can be much more attractive than the 'always lower' price of other ecommerce.

Value for money

Offer the lowest price or show the best quality-price? These two options do not have to be at odds with each other, although experience shows that an excessively low price of a product can generate mistrust, especially in users who land for the first time in an ecommerce. In addition, if these users have already purchased similar products in other online stores, they will have a price reference and will doubt the large difference, unless the price has a reasonable explanation as a wholesale price or a specific promotion.

The customer seeks maximum savings, but does not leave aside the confidence factor or the quality of the product. And to verify the value for money they will use previous experiences, tracking competitor´s prices and comments and ratings of other customers.

Ecommerce transparency

The honesty of ecommerce in terms of its prices is a determining factor in the user's perception before making a purchase decision. Stores that are looking to increase sales with very low-priced deals that then skyrocket at the time of payment are not the model to follow. In fact, this type of strategy is one of the most rejected by potential buyers, not because the final price of the product may seem very high, but because they feel cheated by the brand.

A practical solution is to break down the prices on the product sheet itself, indicating, for example, shipping costs. They can also be included directly in the final price, or you can clarify in a conspicuous place what the expenses associated with the purchase are: by the shipment, by the selected payment method, etc.

The pricing strategy

The price, obviously, affects the image that the user has of the brand and the trust that it conveys. And if the pricing strategy is one of the fundamental pillars of any online store, even more important, if possible, consistency and honesty.

In the digital environment, saturated with options, tools such as price comparators are increasingly used by users, who follow in detail the products they want to buy. There is nothing that escapes them, so you have to be always alert not to make mistakes.

Properly plotting your pricing strategy is a complicated process, but the effort is worth it if you take your ecommerce to success. By having and transmitting security through the prices of your products can be the factor that makes the difference between you and your competitors.

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.