Like any other business, the main motive of an eCommerce business is to maximize profits through maximum reach and reception. While from the customer’s point of view; the main motive is to get the best products at affordable rates. This is where an effective pricing strategy comes into play.
Maintaining the pricing of products and Strategies for Business Growth services is one of the most interesting yet challenging processes in an online business. If the pricing strategy is correct and falls in place, it can pave a path for omnichannel success. Following are some of the most effective pricing strategies that can be implemented in eCommerce.
12 Most Effective eCommerce Pricing Strategies
Cost-based pricing
In this mode of pricing, the retailer mainly Strategies for Business Growth sets prices without doing much research about consumer behavior or the demand-supply chain. The process is quite simple in approach and ensures minimum return of the namibia phone number list products that are being sold. In most cases, the retailer adds some extra markup on the cost price and creates a profit.
For example, If you are manufacturing a pair of shoes at an overall cost of Rs. 700 and want to keep a 20% profit margin, you will sell the shoes at a cost of Rs. 840. This is precisely what is cost-based pricing.
This model of pricing strategy works well for small and medium businesses that cater to a local target audience.
Factors affecting the cost-based pricing strategy include capacity, material cost, overhead expenses, shipping costs, and labor costs. Shipping costs are a major contributor if you do not ship at reasonable prices.
Thus, tie-up with shipping solutions like Shiprocket to reduce your shipping costs and price your products in a more competitive manner. Since you get to ship at discounted rates with multiple courier partners, you can easily improve shipping and do much better.
Competitor-Based Pricing
In this pricing strategy, the retailer tries Strategies for Business Growth to set the price after doing a comparative analysis of the pricing of other competitors. According to the comparison, you can set the pricing of your products based on the pricing of your competitor.
Myntra and Ajio are two eCommerce stores best services for selling digital products in 2025 that sell identical products like men’s and women’s apparel from similar categories and house a number of brands. They usually follow competitor based pricing and most of their product prices are very similar and have only a small marginal difference.
This pricing model is ideal for selling identical products in the market. However, one drawback of this form of pricing is misleading information, which may hinder the progress of your business.
Value-Based Pricing
This is one of the most effective pricing strategies applicable to eCommerce.
You thoroughly research deep into the industry segment, the product segment, consumer tastes, behaviors, and buying preferences and accordingly come up with the right price of the products.
Although value-based pricing requires in-depth argentina numbers market research and customer analysis, the returns and profits that you reap from them are wonderful.