Best Pricing Tactics for Online Sellers to Increase Competitive Edge

Can’t you price your products based on costs and target profit margins? What’sWhat’s the worst thing that could happen if you ignored competitor prices?

You’d have few people visiting your store and even fewer buying stuff. In other words, you’d lose sales. We understand that competitive pricing seems confusing, yet it meets the needs of online retailers.

If you’re ready, let’s break down what competitive pricing is.

It’sIt’s a strategy where businesses consider competitor prices while setting their prices.

As an online retailer, you have many competitors to keep track of. So it would help to have a solid data collection system and a deeper pricing analysis.

What’sWhat’s more, you must be able to respond immediately to competitors’ price changes.

Manually tracking 100 product prices from 10 competitor websites takes 12,5 hours, so we strongly advise price tracking automation.

Using a price tracking and dynamic pricing tool can give you many advantages.

To learn more about competitive pricing, read our blog article: Competitive Pricing: Definition, Advantages & Disadvantages. We love this blog post since it explains competitive pricing in detail while demonstrating real-life examples.

But do you already have a pricing strategy? If the answer is yes, we should look at how efficient your pricing strategy is.

Let’sLet’s examine different techniques to prove your pricing strategy’s effectiveness.

The primary technique is that your prices have to reflect the value of your products. The value you offer is one of the primary factors customers keep their eyes on. You should always ensure that the products you are selling offer value.

Another important technique is that your prices should consider your competitor’s pricing. Pricing your products without knowing your competitor’s prices is a huge mistake. Market research is one of the first steps in determining a pricing strategy, including identifying your target customers and tracking your competitor’s pricing.

There are a few lot more techniques you can use to determine your pricing strategy. Want to learn? Then, it’s time to read our blog article: 6 Techniques that Prove Your Pricing Strategy Is Good.

Now, after learning about a competitive pricing strategy and finding out whether your pricing strategy is good, the last step you should take is to test your pricing!

It’sIt’s crucially important to find the sweet spot where customers are happy to buy, and you are happy to sell. But it needs to be more attention by some online retailers. But we can do a price test without alerting your customers in easy steps. Let’s take a look at them!

The first step you can take is to determine your goals. Do you want to increase sales, maximize profit margins, or strengthen your brand image? All the answers depend on your business goals so that you can start testing your prices.

The following step is to choose a similar product group for testing. Let’sLet’s say that you need to raise the price of your high-selling product. Logically, this is risky because it can reduce the number of buyers. In this case, you must think “out of the box.”

Choose a product from a different group that is less popular among your customers. See how they will react to the changes you made. If you receive much negative feedback, it is usually not the right moment for a price change.

To learn more about price testing, read our blog piece: Price Testing: How to Test Different Prices Without Alienating Customers.

You can increase your competitive edge with our best pricing tactics. You can go over our blog posts to learn all about pricing.