E-commerce has long taken its place in electronic commerce and one of the reasons for its popularity can be called low costs. Your main task is to sell the goods. You do not risk losing money for the goods. You buy goods only when you find a buyer. No warehouses and inventory management. But in order to sell more efficiently you must have a pricing strategy.
What does the cost of a product in E-commerce consist of? First of all, this is the cost of the product. Most often this is the bulk of the cost. Further transportation of goods. Delivery should be as fast as possible. But at the same time, it should be as cheap as possible.
Although most often for the sake of a low price, the buyer can wait. Also, people do not like to pay for shipping. Therefore, sellers put the cost of delivery in the cost of the product. And it is effective!
Do not forget to consider returns. This is also part of the value of the goods. Sometimes the percentage of returns reaches 50% and this is normal for some markets (for example, the market for expensive goods).
Of course, you should try to reduce the percentage of returns. But no matter how many returns you have, this should be taken into account when determining the price of the goods.
And the best part is profit. Do not forget to add your E-commerce costs and the cost of your work to the price of the goods. Using the above information, you should draw up your pricing strategy.
This may be the use of manufacturer-recommended retail price (MSRP) or pricing that depends on the demand of a particular product. There is also a tiered markup on cost approach. For example, a margin on products cheaper than $ 100 will be 30%, and a margin on products more expensive than $ 100 will be 20%.
But first of all, you need a platform where you can sell goods and make money. You can do it fast and easy in Scalehat - the best way to create an online store, attract customers and sell them your products and services. Get Scalehat now!