Some of the popular deals and discounts, those ‘buy one get one deal’ have become a regular view as soon as you open any of the online shopping websites. Online shopping only gets fun when you get huge discounts and add on benefits on the different products. As much as online shopping is fun and easy on the pocket for you, for most of the e-commerce owners, it’s that much tough to price the products which they sell online.
One of the major things that most of the e-commerce owners keep in mind is that not only the quoted prices should be appealing and mouthwatering, but also it must keep the sales figure in peak, and proper condition. This is where the importance of dynamic pricing begins since most of the online retailers put in a lot of different marketing strategies to decide the prices of the products. This makes you keep excited, and crave for more every time you shop online. Listed below are some of the effective strategies which online retailers use for marketing.
Pricing based on the basket
This is one of the unique and innovative methods of pricing in which the price of the products is done in a way so that it forces the customers to purchase more. A lot of popular e-commerce websites use this method of pricing which is quite effective as well. Such e-commerce shoppers are given attractive incentives for the purchasing of the recommended products. If you are not aware then, a proper real-time pricing strategy and algorithm goes on behind the stores.
Known as ‘smart card’, the strategy matches the delivery location of the customer for a few of the merchandise with nearest and trustable suppliers. This means that if the distance between the delivery location and the supplier is more, the cost of the product is much cheaper. Hence, this innovative method of product pricing can help in giving discounts along with a good profit margin.
Pricing based on competition
Searching and shopping for any particular product from plenty of different websites is difficult and definitely, most of the shoppers are guilty of. As the concept of webrooming and showrooming is growing, and becoming common, the retailers due to these reasons tend to keep the prices more competitive. The method works effectively when shoppers tend to get similar kinds of products across different online shopping websites. Storing of different products having competitive prices is surely a huge challenge but it can be addressed by using some improved technology.
Real-time price boosting
Proper using of the real-time retail insights to find out the different price at which the items are sold is an effective way of making sure to gain a huge amount of profits. Lowering the image, and the quality below the competition is not a good idea and a proper strategy to adopt. Instead, incorporating the out-of-stock situations to find out in real by any of the retail analytics items is by far the best idea to raise the prices.
Hence, these are some of the online retail pricing strategies which are adopted and used by most of the e-commerce websites that have gained popularity over time due to its effectiveness and accuracy.