Pricing your products as an eCommerce store owner can be one of the most difficult jobs you will ever do in that business. Although pricing is not always a deal-breaker for consumers, as often they are not simply looking to buy the cheapest product, it’s always an important part of the equation.
In essence, you have to figure out the right balance of profit-making per unit and the optimum number of purchases. There are plenty of strategies to price your products and help you do the above, but the best way is to usually mix at least 2 strategies.
Pricing can really make or break your ecommerce business, so it’s important to spend enough time here to get it right. Also, don’t forget that depending on your overall strategy you can add other tactics into the mix to increase the profit from each customer and their lifetime value.
Before we dive into the strategies, let’s get our facts straight first. You need to know the following before you develop a pricing strategy or formula: