Advice about how to define an appropriate pricing strategy and optimise your eCommerce sales

Advice about how to define an appropriate pricing strategy and optimise your eCommerce sales

05/08/2020 - Pricing strategy

The sales price for a product or service is a key factor when it comes to improving the conversion rate for an eCommerce business. In the end, it’s the price that will determine if a customer makes a purchase or not, thus shaping the company’s flow of revenue. Therefore, companies must establish an effective pricing strategy that will continue to be appropriate in terms of their activity and objectives at all times. To begin, here at Minderest, we’ll provide you with a series of tips to help you take the first steps. We’ll also explain the principal types of pricing strategies that are currently in use. As your starting point, you must have extensive knowledge of the company itself and its sector. The pricing strategy will use this to move within certain margins, using costs and minimum profitability as the lower limit and the market demand and its variations as the upper limit. Your strategy must also respond to the company’s policies and annual targets. Within this preliminary study, you must take into account the legal framework of each country of distribution and sale, since pricing regulations may be in place to avoid monopolies or predatory pricing. The economic situation of each territory, the competition, and the different economic agents that intervene in the production process should also be considered. 3 types of pricing strategies Within the current pricing strategies, 3 have proven highly effective in optimising sales and growing eCommerce businesses. Depending on the market situation and the needs of the company, these strategies can be combined for better results.

Category: Pricing strategy

Tags: ecommerce, pricing

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Angela de la Vieja
Content Manager

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