There are various pricing strategies that businesses are familiar with and almost as many strategies in online stores as user groups. We should consider multiple factors in price strategy building as most of them guarantee high effectiveness as long they suit the criteria of your audience and the status of your eCommerce business.
The main target of all pricing strategies is to improve the income and profits of your e-business. The best pricing strategy to sell more in your e-business will be the one that matches both the needs of the business and the market. Here, we’ll look at the 3 key pricing strategies to help you sell more and be more profitable.
Most common pricing strategies:
- Penetration pricing
- Psychological pricing
- Direct discounts
Joining the market: penetration pricing
If you are launching your e-business in a new market, you need your e-store to be as attractive to your possible. Here, a penetration pricing strategy would be the best option.
This strategy is focused on fairly low prices with a high rate of improvement, which will allow you to enter a market that is already in motion. The ideal partner for this would be a good “omnichannel” marketing strategy that will help you reinforce your launch.
Competing in a very competitive brand: psychological pricing
Psychological pricing is a strategy that plays with displaying your prices to have certain effects on consumers. Psychological pricing strategies use these resources to find the perfect way to make your prices more attractive to potential customers.
This type of strategy has more to do with finding that differentiating element in the prices displayed than the economic value in itself.
This type of pricing strategy is perfect for highly competitive sectors since it will help you gain more attention. To be able to compete in a quickly changing market you need access to the prices of your competition in small intervals.
Tackling extreme competition: direct discounts
Last but not least: offers and discounts in precise amounts. This type of pricing strategy is the most common since it can be executed at any time, through campaigns or simply to empty the warehouse of products that are no longer attractive.
Here, the most important thing to consider is which products you want to offer with a discount. In any of the cases that we’ve shown above, you must have a price monitoring tool to know in detail how the market functions as well as the types of strategies and prices your competitors are using. How else can you make the best decisions for your business?