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The Fundamentals of an eCommerce Pricing Strategy

Pricing can make or break your business but it's surely the easiest way in which you can manipulate and control demand for the products or services that you sell.

Knowing how much your products are worth, and how much potential customers are willing to pay, is key to developing your successful eCommerce business.

Most ecommerce retailers use cost-plus or value-based pricing strategies. These usually work satisfactorily but there are other effective ways to price your products that you may not yet have considered. 

Pricing Strategies are necessary as most of us make purchasing decisions based on price so of course setting the right price takes on enormous importance when you are starting up your eCommerce company.

"Pricing is the only element in the marketing mix that produces revenue; the other elements produce costs."  - Phillip Kotler

Product pricing can be your most powerful tool with which to boost sales. Fact! However, do you often feel uncertain about your current pricing strategy, that it's not "quite right" - nor achieving your desired sales objectives?

Sometimes it boils down to how you wish your business to be perceived - is it as the retailer who sells below the competition to get loads of sales or the one who sells at a higher price but gains added respect because of the value and service you offer?