The old concept of the 4Ps in marketing (price, product, place, promotion) still remains relevant. Each of its elements is a challenge and requires a broad-based look at both the product and the industry in which you operate.
According to the E-commerce 2020 report of the Chamber of Electronic Economy, for ¾ of Internet users, the reason for choosing online shopping is a more attractive price than in a stationary store.
It is said that a product is worth what the customer is willing to pay for it, but today, given the growing competition in every industry, this saying is slowly becoming a thing of the past. That is why an appropriate pricing strategy is a key element of business.
Price in E-commerce the Customer
The customer may think that the price is an invention Ws Data of the company selling the product – nothing could be further from the truth. The price of a product or service includes a number of costs related to, for example, production, service and logistics.
One of the most frequently used strategies in e-commerce stores is to adjust prices to market expectations and the prices offered by the competition.
This involves setting prices based on customer expectations and analyzing the competition’s price levels so that they are ultimately close to industry realities. Thanks to the reference point, we can set rates and offer additional benefits to make our offer the most attractive.
Creating a pricing strategy
Some e-stores adopt a strategy of imposing margins. However, other online BI Lists stores also know the prices from manufacturers or distributors and unfortunately this limits the room for maneuver because we still cannot avoid comparing our offer with others. In such a situation, many people decide to lower prices, attractive time-limited promotions, or bundle products.
Due to the dynamic development of e-commerce, pricing strategies are also changing. Once upon a time, the most popular strategy was the “cost plus” strategy , which involved increasing the price of the product by the margin charged by the entrepreneur. It is no longer applicable now.
The price of the product should be consistent with market conditions and adapted to the brand’s image – when positioning yourself as a luxury brand, you cannot sell products at a low price, because you will look unreliable in the eyes of potential customers.
