According to eMarketer.com, global eCommerce retail sales are expected to top $27 trillion in 2020 and the biggest eCommerce retailer by a mile is Amazon. Bryan Eisenberg recently published the book “Be Like Amazon: even a Lemonade Stand Can do It (co-authored by Jeffrey Eisenberg and Roy H. Williams). Perhaps you could experiment with some of Amazon’s most successful strategies?
Profit margin is a measure of your profitability. The figure varies from business to business but is a pretty good indicator of how successful you are. As author Doug Hall says, “If your profit margins aren’t rising, chances are your company isn’t thriving.” With retail, some of the biggest brands commonly achieve profit margins of 50-60%. In 2017, Ted Baker had a profit margin of 60%, Inditex 57%, and M&S 56%.
Topics: Profit Margins
If you’re having trouble coming up with new ideas to increase eCommerce sales, here are 10 ways to generate more sales.
According to Tim Walker writing for The Guardian, the days of fixed pricing appear to be coming to an end. The traditional concept of RRP or ticket price has gradually been eroded and now there are many exciting opportunities for dynamic, personalised pricing models.
Topics: Smarter Pricing
No matter what product or service you sell, the price you charge your customers or clients will have a direct impact on the success of your business.
A truly effective pricing strategy should:
- Communicate your value
- Position you in the market
- Reinforce your revenue strategy
- Allow you to invest in continuing innovation
Topics: Pricing Strategy
Warren Buffet was not wrong when he stated "The single most important decision in evaluating a business is pricing power."
Effectively controlling your pricing does give you a definite advantage in the marketplace. However, if you are still using spreadsheets to manage your prices, a method which is outmoded, and possibly even foolhardy, the future growth and prosperity of your business could be in jeopardy.
Getting paid on time is one of the most frustrating issues for businesses. Customers are never overjoyed to part with their money. But if they are happy with your products and service they are much more likely to pay within the negotiated time frame.
There is a real danger in “race to the bottom” pricing – basically, no one wins.
By automatically diving to the bottom price all you’ve done is dented your profit margin and your reputation – and lowered the perceived value of your product.
In his article "How to Implement Dynamic Pricing without Sacrificing Margins or Customers”, Arie Shpanya confirms what we probably already knew, that Amazon is still the reigning champion of dynamic pricing.