3 keys to present the prices on your product page

31/05/2017

Angela de la Vieja

One of the essential elements in an ecommerce is the price of the products, and their perception by the potential buyers is a key factor to encourage the purchase. That is why the pricing strategy of an online store should not only focus on issues related to the economic value of the product, but should also be concerned about how to submit their prices on the product page.

The price can be presented in different ways, depending on the costs involved. We will analyse the 3 aspects of the price that most influence the perception of the buyers.

1. With or without shipping costs. This is an important decision that an ecommerce must take: are the shipping costs associated with each particular product or do they represent a fixed amount for the purchase? In the first case, the experts recommend to break down the price by 'product price + shipping costs'; In this way the customer will be clearly presented the value of the product and it will be easier to identify the price differences of different products and different brands, or make a comparison of competitive prices. If you can filter the results by 'price higher or lower' in the category page of the catalogue of your ecommerce, it includes the option of 'price + cheaper shipping costs' so that the customer has access first to the products that they will be cheaper on the whole.

If the price of the shipping costs is applied to the total of the purchase, it is better that it only appears added in the shopping cart. Therefor there will be no distractions as to the real price of each product. A little extra advice? Include in your pricing strategy a discount on shipping costs if the purchase exceeds a certain amount. Your customers will appreciate it!

2. With or without taxes. The presentation of prices with or without taxes depends to a large extent on the buying habits of the consumers of each region and, in any case, of what the regulation indicates. In Spain, the most common is to present the price of the product including the amount corresponding to VAT or IGIC. In an exercise of transparency, you can indicate below the general price what the tax applied is. Generally, not including taxes in the price of the product will be counterproductive for the image of your ecommerce, since the consumer will find themselves later with added expenses when they finalize the purchase.

3. With or without discount. Always with discount. Few things call so much more the attention of a user than to know that they can buy at a cheaper price than usual. Here the question is how to present the prices on offer.

a. With percentage or through the amount. In this case, the recommendation is clear: if you can include both formulas, much better. Why? The numerical dimension of the amount makes it much easier for the customer to compare the price with other brands, and the percentage helps you become aware of the savings you are getting with your purchase. Our product may not be the cheapest a priori without being discounted, but if the amount is somewhat lower than the competition when applying a good discount, it will surely be the one chosen by consumers.

b. Per unit or pack. If the campaign of offers that you are promoting in your ecommerce depends on the purchase of a minimum of units, it is advisable that you indicate what the discount is when choosing a pack. Always point out at what price each unit finally ends and what the discount that is enjoyed in that case. Also, in the dropdown of units to be added to the cart, clarify how many would correspond to a pack. For example, '1 unit, 2 units or pack of 3 units'.

If you still have doubts about how to submit the prices of your ecommerce, we recommend that you take a look at what the competition does. Competitive price monitoring software can help you be clearer about how they manage their prices. In any case, the best way to ensure which pricing strategy works best in your online store is to test the options that you consider most appropriate and analyse the results by campaign. After all, the goal is to promote conversion in your ecommerce, and to achieve it the only key is to see what is most attractive to your customers.

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.