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Should Your Pricing Strategy be Simple or Complex?

There is undoubtedly a desire from both Sales and Marketing professionals and consumers for a simple, easily understood pricing strategy.

When pricing, a seller must always consider the costs of shipping goods to the buyer. These costs grow in importance, as the freight becomes a larger part of total variable costs - quantity, weight and distance from seller will generally increase shipping costs considerably. Pricing policies can be established whereby the buyer pays all the freight expense, the seller bears the entire cost, or the seller and the buyer share this expense.

What is the Pink Tax?

Despite leaps and strides in the fight for gender equality, one area that remains conspicuously unfair is the price disparity between men's and women's products, often referred to as the "pink tax".

Introduction

You've made the decision to grow your business, but how can pricing help you achieve that growth?

Pricing plays a crucial role in various business objectives such as increasing market share, boosting revenues, or achieving greater profitability. In this blog post, we will explore different pricing methods available for your eCommerce business, providing detailed analysis of each method along with their pros and cons.

Want to change your prices in real time to adjust to market conditions?  Want to keep up with your competitors at all times?  Well, dynamic pricing might be the answer you are looking for.

Pricing is king because nothing else will define your business and products more – or, have such a vital impact on the success of your business. Your prices influence how many customers actually make a purchase, how your products are perceived, the types of customers you attract and the amount you collect in sales revenue.

It shouldn’t be a surprise that ecommerce has changed dramatically in the last few months. Lockdown has significantly altered consumer behaviour as we’ve been forced to adjust our lives.

Why should you stop stressing about competitor prices? In this post, we will share why only using competitor data to inform your pricing strategy is a red herring that will cause more harm than good to your business; and the key to fully optimising the prices of your products online or in your physical stores, is to use competitor data, as one of many data sources to make pricing decisions.

This week, we have a guest blog post from Patrick Foster.

Patrick is a writer and ecommerce expert from Ecommerce Tips — an industry-leading ecommerce community on a mission to share myriad business and entrepreneurial insights from the sector. 

We've all become used to the idea of the price of an airline seat varying according to the season, day of the week and time of day.  This is dynamic pricing in action.  The “new kid on the block” however is the setting of the price of an airline ticket according to the attributes of the customer i.e. personalised pricing.