Price remains the biggest factor in determining the value of products available in the market or sourcing it through various online platforms by the customers. In order to shop for a particular product, pricing remains the most important concern amongst the consumers.
With the advent of various technologies, the customers have become not only technically advanced but are smart shoppers too. They can check the market rates through online applications before buying a particular product. In order to deal with the smart shoppers in today’s times, we must learn to develop certain pricing strategies of the products that will help the e-commerce businesses grow eventually. Let’s discuss some of these strategies in today’s post:
Also read: 3 Innovations in the Retail Industry to look out for in 2021
E-COMMERCE PRICING APPROACH TO DRIVE SALE
Set uber specific pricing for the more real look:
Have you ever come across pricing like 299/- INR or 399/- INR? Initially, it helped the businesses a lot by making the price seem cheaper when the first value is lessened only by reducing a rupee. But trust me, now the consumers are more aware and don’t really react positively to such eyewashes. Again if you are pricing it at a round figure say 300/- INR or 400/-, studies showed that most consumers feel the stores generally round off the prices to a higher scale. The solution is to go uber specific to the pricing. For example 341.25/- INR.
Specific prices work well for products like electronic appliances, technical gadgets etc. For example, consumers think that the price has been determined by calculating all the parts inside a computer. Even if the average consumer does not know what these parts might be, they are of the view that the price is not just a made-up number. Hence it is wiser to price your products more specifically to gain customer loyalty.
Values with fewer syllables work more:
Studies have shown that people perceive the price of a product to be on the lower side if it has fewer syllables. For example, going by the syllables, a product of 59.12/- will trick the human brain to think it is cheaper than the product with 57.48/-
Allure your customers with steal deals:
Have you ever come across supermarkets or grocery stores offering extremely lower values for the staples like 1 kg sugar for 10/- INR or 2 kg atta just for 10/- INR upon a minimum purchase of 1000/- INR. This is what is luring the customers with steal deals. Even though the supermarket might be losing profits on this particular product, they are efficient in luring the customers to buy more than what’s on the offer.
Utilize the visuals and designs to draw in sales:
Using visual cues for sale items are a must now. Studies have shown that companies using their designs to draw sales are more successful than their competitors. Using your designs to depict the contrast between the sales price and original price via colour and size can work great in increasing your sales.
Many online stores use bright colours such as red, yellow or blue to emphasize the price drop in their products and highlight the reduction percentage to attract the customers. Visuals do have an effect on the subconscious mind and using it efficiently to increase conversions on your products is the key to achieve a better sales percentage.
Offer more options of similar kind of product with slightly different prices:
Offering options to choose from a variety of similar kinds of products but with slightly different price tags is a good way of attracting customers. Studies show that the more choices are on offer the more people get lured in.
Prices are essential for the consumers to determine what to purchase given the price difference in each than the usual market rates. Smart shoppers look for options and won’t hesitate if they get a better offer elsewhere.
Reducing the prices of your products is not the solution as it deters the success of your e-commerce business. However, to increase the business one must know how to implement intelligent pricing strategies to ensure better sales. Show the consumers that your price reflects the value of your products. Offer cheap prices to turn people into loyal customers and use psychological tactics to convince them into buying your products. Make sure to determine offers that make your consumers look forward to it.
Do you own a retail business and are struggling to streamline it? oneretail brings for you a highly specialized retail business management solution to streamline your business processes starting from POS, billing, inventory, order management, offer management, retail chain management, customer service management and more. Explore more about oneretail now.