Considering the Important Aspects of Ecommerce Pricing
It’s such a turn-off for you when you are headstrong about buying a favorite product and then suddenly you see an exorbitant price tag attached to it. It almost feels like your dream has come to an end and you return home with frown on your face, utterly disgusted with the experience you have had at the shop. This is a common scenario that most consumers face while opting for an offline buy and hence they seem to be driven towards online buys.
Why pricing matters and the fact underlying
Creating a purchase environment is of true importance. For physical stores this aspect is differently approached and in case of online stores the approach is more outwardly as shop owners are busy competing with each other, implementing the best price they could offer for attracting an online customer base.
You can consider the following facts which may let you see pricing in a different light:
• 60% consumers who look for products online find pricing the most compelling factor influencing a purchase. Emerging markets may find a rising number of consumers relying on the pricing part.
• An estimated 20% of the traffic arrives from the different price comparison shopping engines. The percentage goes high for various price driven segments.
• A research has shown that over 90% of consumers tend to hunt online for enticing deals.
• A minimum 10 minutes of investment on each interesting purchase has been noted
The different types of pricing approach
Among the various pricing approach which are in operation, the cost based pricing deserves special mention for being simplistic.
Cost based pricing entails defining of a price, which is considered the cost of the product and above it lies a profit margin; this sums up to the price mentioned on each product. Measuring the price and deriving upon an estimation are two important parameters for cost based pricing. The cost of a product also includes overhead expenses which are related to the ecommerce operations involved. Under valuing is a major threat while over valuing too is not good.
Consumer oriented pricing entails decision making in implementing a price tag that relies upon the consumer’s preferences. In order to define such pricing aspect it is elementary for the business owner to concentrate on the following:
• Target audience
While considering these two aspects do not fail to include the profit margin that you want to implement.
The Quadruplet of Pricing
Pricing being an elementary aspect of marketing should entail the ecommerce business owner to take into consideration the following:
• Smaller font
• Less syllables
• The “9” ending
• Emotional vs. logical purchase intent
You have to consider that most of the purchase intents are either logically based or emotionally based. While some may purchase out of emotion and may forego the price tag latched with the product, others may use reasoning to why he/she should purchase the product.