Ecommerce Competitor Pricing Strategies
- Focus on long-term costs when setting margins
Also known as cost-based pricing, for a profitable business, you need the revenues to exceed the total, long-term cost of a product. Operational costs have to take into consideration like salaries of your staff, customer acquisition costs, e-commerce platform costs, hosting costs etc.
- Outsmart e-commerce competitors by closely monitoring their prices
Having an automated e-commerce competitor price tracking and analytics tool, which makes it easy to monitor the fresh online market data automatically, and enables you to act upon it dynamically.
- Let customer-centricity drive your pricing decisions
Customer centricity should drive your pricing decisions, as it’s a proven approach to keeping e-commerce prices competitive. See who your target customers are and check for their demographics. This will help in understanding the pricing strategy.