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Pricing it Right on different Marketplaces
It is not unusual to feel overwhelmed with the multitude of activities when selling in marketplaces across segments. Competition is tough and the enormous amount of data is all-consuming. The competition is especially worrisome when it comes to pricing. Consumers are very price-conscious and to get their undivided attention you need to offer attractive prices that customers cannot resist. So plan for a structured pricing strategy to manage sales across marketplaces.
Generally, pricing a product is a skilful job because you have to hit upon the exact price that will sell. Today automation helps you in this because you can easily track the differences in prices and adjust yours accordingly across marketplaces. This will help to get more hits and greater sales than before. In fact, the right pricing safeguards your sales.
It is interesting to note that “Sellers can strategically set prices on different marketplaces based on demand, time of day or competitors’ prices. Accessories retailer Phoenix Leather Goods sets floor prices or the lowest price for which an item can be sold, for all products. This helps in maintaining gross margin per product on every marketplace, says Brad Rusin, director of e-commerce. Phoenix uses an algorithmic repricing feature from a technology firm to set those prices for all products.”
Successfully managing prices across marketplaces is important because customers are sensitive to changes in price. It is only a perfect price that will popularize sales of your product and for this, you need to follow some common strategies.
- The lowest price does not necessarily get you the best sale. Many a time, if the price is too low consumers tend to think of it as a lower-end product not worth purchasing. Think of your required profit margin before selling at rock bottom rates.
- The ideal pricing is 1.5% more than the lowest offered price. Your product is now considered to be inexpensive enough to be considered competitively priced.
- With the billions of sellers out there it is important for your product to be visible as well as being competitively priced. Today an internet search for a product reveals a huge number of the same product but from different brands. The prices vary and the cheapest is not always the best. However, it is wise to keep a tab on competitors and how they modify their prices. This will help you to manage prices across marketplaces more efficiently and effectively. Focus is the key here.
- Make use of data analytics and repricing software to give you insights into inventory and competitor’s prices so that you can take strategic decisions about managing your prices in different marketplaces. Price wars are never a solution and the use of predictive and statistical analytics, as well as pricing algorithms, will aid you in enhancing your ability to formulate pricing strategies effectively.
- It makes sense to have a Unique Selling Proposition because that will give a unique identity to your brand, will earn you a niche in the potential customer’s mind and that is crucial to your pricing decisions. It could be free shipping, great customer service or even a Flexi return policy. Whatever it is it leaves an impression in the mind of the consumer. When there are loyal customers out there waiting for you, complications due to pricing take a back seat. However, you still have new and potential customers to consider and you should continue to attract them to your products with the above services combined with irresistible pricing.
- Offering discounts is another awesome way to manage pricing across marketplaces. Offer unique deals even if the marketplace does not.
Competition is quite intense today and the best way to boost your sales is by being proactive, using automation tools to check other’s pricing and thus manage the pricing in different marketplaces you sell on effectively.
Do remember the following when managing prices in different marketplaces:
Be consistent in your pricing across marketplaces. They have their strict policies of sales and ethics, it is important to abide by them so that the marketplace image is preserved. After all, they want to impress upon the shoppers that they offer the best.
Make tweaks to your pricing based on supply and demand, the outflow and the required inflow of stocks. This will make a significant difference in your revenue in the long run. With automation, this is no difficult task. A leading AI-powered ecommerce enabler, Eunimart, helps you to automate all your business processes saving you time and 30% costs on manpower and helps to optimize Pricing, Product Information Management across all your channels of sales and reconciles all payments on a single platform for consolidated control.
Not to forget the Best Practices you can follow:
- Audit your Agreements with the marketplaces regularly. Pay attention to details and audit your pricing strategies.
- To stay ahead let data analytics guide you into monitoring competitor’s prices. Use tools as benchmarking tools and visualization dashboards. Let the tools guide you 24/7 about how your products are faring against the rest.
- Use bundling to land bigger sales. Offer discounted multi-packs, i.e., three for the price of two for example. All these pricing strategies help you to manage sales and control prices across the marketplaces on which you sell.
The art of managing prices in different marketplaces is thus sheer hard work, agility, alertness to changing market price scenario and the use of technology as algorithms to help you. This effort leads to better business with growth in sales and an expanding customer base combined with brand exposure as well as popularity. So Price it right with Eunimart and watch your sales grow!