How To Price Your Products On An E-Commerce Platform?
When it comes to E-Commerce platforms, the most important thing to remember is PRICING PRODUCTS In these platforms. Pricing decision has further gained importance. It is very crucial for you as a seller to price your products right. If you price them too high, you lose valuable sales and if you price too low, despite gaining significant sales, you may end up with very less profits. In this article, we will be discussing 4 product pricing and will try to understand what factors you need to take into account while you are pricing your products.
1.PRICE OF YOUR PRODUCT WILL DECIDE YOUR MARKETPLACE EXPENSE AND THIS EXPENSE SHOULD BE PART OF YOUR PRODUCT PRICE:
Ensure these Prices While Pricing Your Products
2. ANALYSE PRICING AND PERFORMANCE :
Another critical aspect of pricing decisions is understanding the current price range of similar items in the marketplace. A simple rule to follow: Go to Amazon marketplace and search for some important search terms relevant to your products and study the search results on page 1. Analyze their pricing and their performance in terms of sales rank, search result rank, no. of reviews, etc. This can give you a peek into what pricing band your competitors are using to sell the same or similar product
3. DON’T STICK ON TO FIXED PRICES :
Price is not something that you can decide once and stick with it forever. It is a dynamic decision. It will depend on the stage of the product lifecycle. If your products are new in the market, you need to have a very low-profit margin. Once you start to gain more popularity and traffic, then you can go ahead and increase your margin. Other than that, you should also vary your price depending on your competitor’s offer price to make sure you stay ahead of the competition. This does not mean you should be blindly following your competitor’s price. You should rather keep looking at their prices and take a call on whether you need to revise your prices.
4. FOCUS ON FESTIVE SALES:
You should also vary your prices keeping in view the seasonal or festive discounts. Usually,the traffic on marketplaces is high during the festive seasons and by lowering your price by offering discounts you can hit the target of sales and profit balance where you will be getting enough sales as well as making good enough profits.
5. GENERATE AND ANALYSE REPORT :
You should be strategizing your pricing in a manner that leverages the number of potential buyers in E-Com Platforms Increase.
Always Generate and Analyse Report Based on this points;