One of the most important factors that have a critical impact on your sales volume or sale rate is pricing. According to a recent e-commerce statistics, 80 percent of consumers confirm that pricing matters a lot to them when they are making purchase decisions.
There are many other factors that can affect your sales volumes, but considering that your sales depend hugely on your prices, it should be your priority to maximize them so as to optimize your sales conversion. For inspiration, here are some useful tips:
1. Leverage The Power Of Dynamic Pricing
Dynamic pricing is currently considered as one of the most buzzing e-commerce pricing strategies globally. It allows you to boost sales and profits by adjusting your prices based on a wide range of factors including:
• Penetration pricing: attracting your potential customers while offering them low initial price
• Segment pricing: varying your prices based on your customer segments
• Peak pricing: increasing your prices based on sudden market shifts
• Time-based purchases: setting your prices based on the lifetime of your products
2. Take advantage of charm pricing
Charm or psychological pricing is a pricing model based on the concept that certain prices have psychological impacts. This is where prices are expressed as odd prices or a little less than a round figure such as $2.99 or $34.99. With this type of this pricing strategy, you can target the psychology of your customers in the best possible way so that they eventually end up making purchases. Many retailers have used the strategy to boost up sales and improve their conversion rates significantly. It will definitely work for you as well.
3. Adopt behavioral Pricing Models
Behavioral pricing allows you to decide on the best prices for your products or services based on how your target customers are behaving online. But how can you identify such behaviors? Well, one of the strategies that you can use is to do some split testing of prices across a variety of mediums then analyze the resultant data to establish the prices that increased target behaviors. Some of the parameters to check include social network engagements, browser search history, and customer click-paths among others.
Bottom-line
There are several pricing techniques that you can take advantage to optimize your e-commerce sales. The best strategy to adopt largely depends on your organization goals. If you are focused on getting a market share, consider low pricing. However, if you are focused on profits, consider the markup approach. Whatever model you choose, consider using apps such as Shopify price filter for easier price organization on your store.