Ultimate Guide Of eCommerce Pricing Strategies

Oct 10, 2019
4 min read

eCommerce is one of the booming industries right now. Global eCommerce market trends are showing rapid growth and the report reveals that in 2020 there will be 4.1% rise and the market will reach 26.074 trillion US dollars. Consistent sales are the key factor for any kind of eCommerce success and before pricing, development of eCommerce also essential.

To develop your eCommerce always choose Magento. Magento isn’t only free but it has numerous benefits which will help the owner to drive better ROI and generate revenue. Magento eCommerce, developed by professional Magento eCommerce development company, always fueled your business to the next level. Here given some expert recommendations and ultimate guide how you build strategies of Pricing for the betterment of your eCommerce.

Key pricing strategies will help to attract more people to your store, convert more onlookers into buyers and overall profit boosting.

Here given in details:

# Pricing strategies for traffic:

Online traffic means the people who come to your store, so you need to place them first and attract them to your store by utilising various eCommerce pricing strategies.

Non-profit based pricing: To implement this strategy you need to pick some products that make little or even no profit. This strategy is often used by eCommerce retailers where there are discounts on offer. Here the main purpose is to create such a great deal around a product that people stick around to look at the other products. This kind of approach is often seen to sell those items where there’s a necessity to buy supplementary products such as saving products or toothbrush etc.

Free+shipping based pricing: Another interesting pricing based strategy is free plus shipping based pricing, here you need to set certain products for free with the customer only paying for shipping. But be careful, you can’t charge more money for shipping when you offer to give away. In the case of free shipping, you need to be as transparent as possible.

# Magento eCommerce Pricing strategies for conversions: Customers can come from various channels such as they find your store through word-of-mouth, an advert, social media or even through a Google search, you need to find ways to convert them into customers.

Anchor pricing strategy: Here you show the value of the price of a product by anchoring it next to another one which helps the buyers to develop an image on their mind that they are getting a good deal because they can see the price they could be paying.

Studies have shown a discount of 5-10% is enough to create that memorable moment and sense of value.

This strategy works by setting the original price as the reference or anchor point in the minds of consumers, which they use as a reference point to form an opinion of how much they’d be happy to pay.

Bundle pricing: Bundle pricing is another great eCommerce pricing strategy to convert consumers when they land on your Magento eCommerce store. This strategy helps to sell multiple products for one single price point.

Always be careful when you do use the bundle eCommerce pricing because if you make the costs too low, you’ll have severe trouble trying to sell the same products at individual prices.

# eCommerce pricing strategy for profit-boosting:

Your Magento eCommerce development can boost your sale process when you’ve attracted people to your store and encouraged them to make a purchase, it’s time to increase the amount of profit you generate by applying dynamic pricing.

Dynamic pricing: It’s an interesting pricing strategy where you can change your product price based on demand. This type of pricing strategy essentially gives retailers flexibility in their pricing. It is allowing them to increase and generate more profit when business is booming or decrease to increase sales when business is a lot slower.

This pricing is different in that it has multiple price points instead of just one. You can set any criteria to apply this. Here given the tactics which are mostly followed by the retailers.

Time-based dynamic pricing: Adjust your product prices based on how long it has been on the market.
Segment based pricing: Here you can offer one price point to a certain segment of customers and a completely different price point to another.
Demand-based: You can set a higher price according to higher demand.

When you have already set your mind to transform your physical business online. Then you need to consult with professional Magento eCommerce developer from Magento eCommerce development company to get proper and more in detail guidelines to boost your sales process.

Wrapping up:

Above given ideas can help you to streamline your business into another level. PHPProgrammers, Australia’s 1# Magento eCommerce development company offers customer-centric and tailored Magento eCommerce development and strategy planning to drive more ROI and generate revenue from random onlookers as well as regular customers.