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E-Commerce and Market Price Fixation Mechanism: How to Do It?

Summary: To get into the best part of the competition you will have to understand that price fixation will always keep you ahead.


Running an e-commerce store might be delved into a lot of difficulties when you have to decide on the pricing. Pricing is the essential element based on which the demand of the business would be defined. In this piece you will come to know about few basic pricing mistakes that most of the e-commerce enterprises have been making and you can prevent the history from repeating itself by not going along with this fashion.

Price Fixation of the Product Sold on e-Market Places

At the time of fixing the prices the e-commerce companies fail to understand the basic principle that units should be always sold at a higher price than the cost of production. For e-commerce market places in India it is a tough ask to analyze the input price that must be fixed for each product. In the pursuit of selling on the e-commerce market places the e-commerce company must understand that they have to add overhead and other expenses like marketing and sales promotion in the price of the product and subsequently forward the price to the customers. This will happen only when store owners will understand that price of the product is not directly proportional to the acquisition price of the product which has been put on their market place.

Price is always stagnant

Most of the sellers have been paying little or no interest towards the prevailing trends and their prices will remain more or less the same every time on their e-commerce store. You will have to adjust based on the demand put forward and only then you can function effectively in the competition. If your prices are continuously high they will not attract demand whereas if you keep your prices low during high demand it will eat upon your profits and never let you grow in compliance with the stipulated standards of the industry.

Always Aim for Minimum

Striving for excellence will come only when you are able to keep your prices low but yet they should be fixed in such a way that you can cover the cost along with the profit. But when you are going for the minimum pricing mechanism you must always ensure that operational cost and profits have been covered. In the initial stage to capture the market you can work on the break-even point but from the perspective of expansion you cannot be there for long. So at the time of fixing the minimum price always make sure that you have included the profits if not super-profits for the purpose of greater competitive analytics.

Keep in Mind the Competition

Do not be of the view that e-commerce is a monopoly zone, on the contrary it is a perfect competition and you will have to keep an eye on the movement of the competitors. When you are aware of all the aspects of the competition and how to adjust accordingly it will always keep you ahead.

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