Correct Pricing in E-Commerce

Correct Pricing in E-Commerce

In e-commerce, pricing plays an important role in sales rates. Online retailers always keep track of competitors’ prices. Every e-commerce store also knows that their prices are tracked daily not only by their competitors but also by consumers.

The top three reasons consumers shop from an e-commerce store are linked to pricing. Before many consumers shop online, they compare prices between e-commerce sites and look for sites that offer coupons or gift certificates. In the past, consumers had to go to the competing store to track and compare prices. This process can now be done through online platforms.

The top three reasons consumers shop from an e-commerce store are linked to pricing.

There is a price war between e-commerce sites, not price competition. In large retailers, this war can be seen much more clearly. This war has led to the emergence of software that supports e-commerce pricing strategies. When an e-retailer lowers prices through these software, the rival e-retailer can automatically make a price reduction on their site.

However, price wars can sometimes be intense and difficult between small and medium-sized e-commerce stores. These sites have to offer a competitive price and make a profit, not only against major retailers but also against competing e-commerce stores.

Points to Consider in Correct Pricing

Correct pricing; It is a strategy that will ensure success in the competition while maximizing sales and profits. As technology improves, pricing wars are getting bigger. However, being the cheapest e-commerce site is not the only way to stay competitive. By using technology strategically, strengths can be brought to attention. This method can provide an advantage even against large online retailers in price wars.

The number of e-commerce stores is gradually increasing. In this environment, it is necessary to automatically monitor the prices of competitors’ products daily or even more than once a day to compete in pricing. It can be difficult to track competitors’ prices. Pricing automation can be used for this. Automatic price monitoring saves time and provides competitive advantage over competitors.

Points to Consider in Correct Pricing

Large online retailers can act more flexibly in terms of price due to their structure and volume. Tracking the prices of online retailers can provide an ideal strategy for accurate pricing. For example; Large online retailers are able to offer their customers attractive options with low-cost shipping and fast delivery. With the same method, smaller-scale e-commerce sites can also provide a competitive advantage.

The following strategies can be followed according to the structure of the e-commerce site for correct pricing;

Cost-oriented pricing: This method is pricing by adding some profit rate to the changing product cost. In this method, the profit margin can be kept low in some products and high in others. Pricing integrated into fixed costs can also be made. It is a commonly used pricing variant for first-time priced products. It can be used for a wide variety of products that are difficult to price.

Market-oriented pricing: It is a pricing strategy used to keep up with the competition in the market. It is aimed to prevent potential customers from going to competitors. For this pricing, price movements in the products of competitors should be constantly monitored. In this pricing, it is necessary to keep the profit margin low. If this process is prolonged, problems may arise in financial targets.

Market-oriented pricing

Periodic pricing: It is a pricing option made according to the period. Demands for some products may increase or decrease in some periods. It is necessary to follow different pricing strategies in order to keep sales at a certain rate during these periods. Practices such as the end of season sales are examples of this strategy.

Promotion-specific pricing: Special pricing for existing customers for new products being promoted. A launch-specific pricing can especially attract a customer base with brand loyalty.

Value-oriented pricing: It is pricing based on the value added to the customer by a product. Some customers will not hesitate to pay more for products they believe add value to them. Customers need to be informed in detail about the value the product provides. Marketing strategies can be used for this.

Value-oriented pricing: It is pricing based on the value added to the customer by a product. Some customers will not hesitate to pay more for products they believe add value to them. Customers need to be informed in detail about the value the product provides. Marketing strategies can be used for this.

Psychological pricing: It is the pricing in which the number “9” is used in the last digits of the products. For example; 6,99 TL. This pricing strategy creates the perception that the product is cheaper than its real price. It is a very commonly used pricing variant because the brain focuses on the first step in price.

Promotional pricing: It is a commonly used type of pricing. More than one product in a single package is offered for sale with the perception that it is given at an attractive price with messages such as “3 area 1 free”. If more than one product is purchased, sales are made at a determined promotional price.

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