E-Commerce store is all about how you have priced the line of products that you have on offer to the general public. The more aggressive you will be with the pricing, the more you could be sure of capturing more market. This is a consumer’s market and wherever they are going to find the right deal, they are going to buy the products from the source that is offering more discounts and better deals. Dynamic pricing is the key here to get the right track on online retail space so that you are able to capture and retain customers across all the segments.
Have you ever kept a track on the pricing of the products at different market places and have you noticed how they keep on changing the prices to lure the customers up. That’s dynamic pricing hard at work. Thanks to lot of competition between the E-Commerce stores, you need to be very careful with your pricing strategy so that you get the right margin and you get to keep the clients as well.
- Use The Right Data
To make the best use of right pricing, you have to use the data in the best possible way. You can do this by taking a look at the competition and make a note at the price they have ranged their products. Sometimes, the search engine matches the T shirt that you have on offer at a lower price with a T shirt that is priced at a higher range and this lets you lose a potential sale. According to WIPRO, 64% of retailers don’t actually have a well-defined policy for analyzing data
- Test Your Prices
Once you have sorted the data in a right way comes the time to price up the products in best possible way. You have to bear the fact in mind that what is working for one E-commerce store might not work for you and you need to have a look at your customer base as well. Keep points such as brand value, shipping costs, competitor prices, price elasticity, and more in mind before the pricing strategy.
- Be Dynamic
You need to be dynamic when it comes to pricing the product in a right manner. You also have an option to offer a regular customer more discount than the customer who is purchasing the goods from your portal for the first time. Using options like Emails and newsletter to ping the customers who have shopped on your site twice or thrice will help you lure them to make more purchases. Keep the fact in mind that you always have an option to alter the price to increase the sales.
