The keys to adjust your pricing strategy to different markets

17/05/2017

Angela de la Vieja

When an ecommerce wants to enter new markets, it is important that it draws up a new pricing strategy that fits perfectly with its characteristics. To do this, the brand must carry out two analyses: the in-depth study of the audience to be addressed and the analysis of the competition in the new market.

This research process is as equally as important with each new approach to a market, as it was in the initial launch of ecommerce, since the audience and competition factors form the base of the new reality in which the brand wants to start moving.

The target audience profile

In order to establish a pricing strategy, it is essential to trace the demographic profile of potential ecommerce customers and to know their buying behaviour.

We could say that the demographic profile is the most descriptive, the answer to 'who is': age, sex, profession, income ... Although it may seem like a lie, depending on the market there may be differences in the audience that are essential when it comes to Driving the pricing strategy one way or another.

A practical example: a beauty product ecommerce plans to enter another countries market. Is the target audience going to buy makeup exactly the same? How do women use make up in this new environment? What do their tastes depend on?

As for consumer behaviour, it is important to know how the process of buying online is in the new market. Regarding price, the keys are three: identify the value of the product for the potential customer, know how the price influences the purchase decision and know how it affects the perception of the online store. It is fundamental to understand how much the consumer is willing to pay for the product and for what reasons, in addition to knowing what the customer's expectations are regarding the product.

The competition analysis

Studying the prices of the competition is fundamental to know if the pricing strategy of an ecommerce can reach relevance within a new market. So to have a program to detect competition prices is the key. And these product price tracking tools help ecommerce to know in which market position their prices are at all times compared to other retailers.

In this respect, it is essential to identify correctly who actually competes with the ecommerce, using a comparison of key elements such as the type of product, the target audience, the price range in which it moves and the objectives that the brand seeks to achieve (besides selling, becoming a benchmark of the sector or be the cheapest, for example).

In addition, price intelligence software facilitates other tasks related to prices and online catalogues, such as the exchange of currency or the calculation of the stock needed to cover the market, based on information collected from the websites of the competition.

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.