Father's and Mother's Day: how to fix prices for the dreaded packs?

14/03/2018

Angela de la Vieja

Like Valentine's Day or Black Friday (which has now become Cyber November), Father's Day and Mother's Day are two key dates for ecommerce. During the year, online stores face these featured dates trying to be the most competitive, an objective that can lead to making the wrong decisions along the way.

Over the days of Father´s and Mother´s day, the sales strategy focuses on making good packs that attract more customers and increase sales. However, sometimes the way to set their prices is not the most appropriate, since it does not respect the main goal of all ecommerce: to make a profit.

Thanks to monitoring the prices of the competition, each brand and online store can know in real time what prices other ecommerce set for their products. In order to adjust prices to the competition without losing profit margins, it is important to take into account the characteristics of our own brand, the costs of the sale and the other associated factors, such as shipping and delivery costs.

In this case, the pricing strategy for the packs must reflect the proportional part of these costs for each product. How to do it correctly? Here are a few suggestions.

Percentage discount: discount the price of the pack thinking about how much you could reduce each product separately. In this way it is ensured that the final amount will continue to report benefits to ecommerce.

Include a gift: once the price of the pack at which it could be sold has been analysed, direct the call to action to a free product for its purchase. This gift must have the same value as the possible discount to be made to the rest of the pack, so that the margin of the brand is insured but this offer can easily hook the customer.

Do not forget that the goal is to encourage the purchase, so making the right packs (however attractive its price) also implies a good selection of the products it will contain. If the offer is based on a pack with lots of products making inevitable the high amount of its price, the sale will surely slow down on its own.

When selecting products it is essential to recognize which ones can be associated by logic and necessity. For example, a razor with its refills, a perfume with the same aroma lotion or a wireless keyboard with a matching mouse and mat. For this same reason, it is also necessary to keep the product catalogue updated for the occasion. Do not hesitate to launch a catalogue intelligence tool to avoid the sale of products that are out of stock, as a poor stock management is one of the problems that generate the worst image to the customer for an ecommerce.

The ideal pricing strategy for these days must be accompanied by a strong marketing campaign that encourages the purchase during the entire period of time that will be affected. Remember that this type of sales respond to a very important time factor, since the deadline is the key. Add last minute discounts is a way to take advantage of the urgency of the buyer, who can also be attracted with express or weekend shipping costs at a reduced price or, even, free. Everything will depend on the costs that have to be covered with the sale and the (realistic) forecast of the total sales.

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.