Price is of utmost significance for buyers irrespective of whether they buy offline or online. It’s the top factor that determines where people shop. Buyers also purchase where they feel like these days, be it through apps, websites, social media etc.
It is also possible to check rates via Google Shopping or price comparison sites. What we need to understand is that shoppers are becoming smart and you, as a seller, have to be so, too. That’s the reason we have created this list to share with our readers the best competitive pricing strategies that can to help e-commerce business to grow its online sales.
If a customer’s buying decision is based on logic, a particular price works well. An excellent example of specific is $319.76, instead of $310 or $320.
Going by a study by the University of Florida, buyers believe that shops make rounded-off prices intentionally higher. Thus, they are not very likely to click on that CTA button. You could have chosen any random price that is too high for the actual worth of the product.
Select Values with Lesser Syllables
An individual thinks that a price is lower if it contains lesser syllables. A study from the Clark University highlighted that even if a pair of prices have the same length, such as $27.94 and $28.16, if the price sounds longer phonetically, it will seem higher, which is $27.94 in this instance, despite being the lower amount.
Let’s assume that the local supermarket promotes disposable barbecues at a crazy low price – so low that the customer thinks that they’re looting the supermarket. They are losing profits in this category. However, the supermarket is still the puppet master, pulling on the buyer’s strings. They understand that they are going to make good profits on the steaks, beer, and salad along with anything else that the customers will buy with the barbecue.
It is called a loss-leader.
Use Visual Cues
84% of marketing, creative as well as tech professionals think that design-driven companies are surpassing their competitors. The way one can use design is crucial. Creating a visual distinction between sale prices and actual prices, using colour or size, for instance, heightens the difference, as AMS Amazon marketing does.
Display a Product’s Maximum Retail Price (MRP)
It is a clear statement to your consumer. Look at the amount you could be paying. The great idea is to persuade visitors to purchase by underscoring the stark disparity between the maximum retail price and your offers.
Place an Expensive Item on the Left
It is crucial to organize the category pages carefully. An excellent way to put this technique into effort is by placing the costlier items on the left. Once a customer sees a valuable commodity, anything laid out after that will look like a great bargain. This way, they are likely to be more ready to part away with their money.
Display the Equivalent Daily Price
When you show the daily price just beside the regular rate, the product the consumer was pondering upon doesn’t appear to be an expense. The strategy is similar to the way one might offer monthly financing options for the high-ticket items. As with any tactic, you can put your unique spin on it depending on the nature of your brand.
A/B Test Your Prices
A/B testing is a desirable means of increasing conversions. It is the second most prominent CRO method after customer journey analysis. Try pinching the prices to see what could be most profitable for your store overall.
A site that sells exercise guides split tested the pricing with exciting results. Their course used to be sold at $19.95. They wanted to see if its increase to $29.95 changed the number of purchases. The variation in the number of buyers was negligible.
Similar Products at Different Prices
If visitors come to your site only to find a ton of similar products being sold at the same price, they are going to bail. You don’t need that. To avoid such a situation from taking place, reduce the effect by selecting slightly different rate points to related products.
It is not feasible to continuously reduce prices if you want to build a thriving e-commerce business. It is necessary to employ smart pricing strategies to guarantee that your sales progress and grow.