How to define your pricing strategy during sales

27/04/2017

Angela de la Vieja

To maintain the interest of its users, an ecommerce has to readjust its pricing strategy according to the actions of its competitors. And, of course, there are also occasional seasons in which you must change your prices, for example during sales.

In sale campaigns the impression caused on potential customers by discounts greatly influences the purchase decision. And on many occasions, the brands, anxious to stand out among the others, make abrupt changes in prices that, later on, cause more of a headache. So, how do you plot a good pricing strategy for sales?

In the first place, it must be considered that a good retail pricing strategies during sales must respect both the interests of the brand and those of the consumer. That is, the offer must be sufficiently attractive to the consumer while continuing to generate benefits for ecommerce.

To reach this mid-point, the first recommendation of pricing strategists is not to launch the super-discounts at the first exchange. It is not a question of defrauding your customers, but you must be aware that the sales campaigns have a duration of at least one month. And with a price cut too flashy two things can happen: that your brand loses the profit margin when continuing with those large discounts, or that the sale will brake as the sale period advances because users do not perceive any kind of upgrade.

A safe option for the brand is to draw the discounts in three temporary stages, which will be placed in the calendar to be applied as scheduled in the strategy. How do you know what discount to start with? Thanks to a program that detects competitive prices. This type of software allows us to know the levels between which the rest of the brands of the sector move to be able to adapt the prices to the market.

This way you can establish if it is more positive for the ecommerce to start offering the same discounts as the competition or tighter prices. It’s always the same debate: big discounts on inflated prices or a moderate reduction at a fair price for the value of the product? In any case, it should not be forgotten that many of the potential customers will have made their own follow-up of the products that interest them, so inflating prices can lead to negative connotations to ecommerce.

Apart from the strategy of discounts for stages, you have to take into account the different alternatives with which you can benefit your customers for their purchases in sales:

• Free shipping

• Extra discounts for purchases over a certain amount

• Special offers in multi-packs

There is no doubt that a strategy of pricing in sales gains in attractiveness when it is accompanied by other complements.

Finally, it is necessary to do a competition analysis in real time, with two objectives: to know which products are the best sellers in other ecommerce sector and to control how competitive prices fluctuate by doing online price tracking. In this way, each brand can adapt its pricing strategy to the needs of the moment.

On the whole, designing a pricing strategy during sales is not a complicated task if you follow some basic steps. Of course, always taking into account maintaining customer satisfaction and brand transparency.

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.