Latest Pricing Trends and Commonly Used Tools
Taking advantage of pricing trends can lead you to have higher profits. Let’s discuss the latest pricing trends in the ecommerce industry to keep you on track. Hopefully, knowing these trends will help you develop an up-to-date pricing strategy and avoid outdated practices.
Trends in Ecommerce Pricing
1. Dynamic pricing
Dynamic pricing is a strategy whereby businesses adjust prices according to market conditions. The factors affecting the changes vary for each company, but they are usually based on demand and supply forces, competitor prices, seasonal shopping events, etc.
Commonly used examples of dynamic pricing are flight tickets, Airbnb, and Uber payments. The amount of money you pay changes depending on your willingness to pay and urgency. For example, all the passengers on a plane bought their tickets for different amounts of money since their payment dates are different.
Applying this pricing method to your ecommerce store can create a big change in your overall profits.
2. Transparency
Today’s shoppers not only find the best deal they can get in seconds, but they can also compare price offerings from different cities, states, countries, and regions. Consumers are becoming more price-sensitive day by day.
You need to keep it clear and simple if you want to build trust with your customers online and encourage sales. When you increase your product prices, you might let your customers know the reason behind it. This way, you can protect both your brand image and sales.
3. Psychological pricing
It is a strategy that uses pricing to influence customers’ spending or shopping habits to make more or higher value sales.
Starbucks, one of the most well-known coffee company, offered short, tall, and grande drink sizes in the past. Most consumers went for tall drinks instead of the grande option.
When Starbucks added the venti size and removed the short size from the menu, the grande became the middle — and most usually chosen — option. People start paying more as a result of the minor difference. They were lured into purchasing a large cup of coffee on a psychological level.
3.1. Odd pricing
This strategy involves changing an even price to an odd, slightly lower one to boost demand. Products with an odd number at the end sell better than those with an even number, such as $66.49 or $103.95.
These price strategies will be successful for you, particularly on websites with many visitors, like Google Shopping and Amazon. Tiny improvements might have significant effects on your profitability.
4. Automation
Business owners can step into a more strategic role by automating tasks that take much time. Automation lets you compare your products’ performance with competitors systematically. Since competitor tracking tools are very trendy for ecommerce store owners, you can better understand how many products you’d need to have in stock, the optimal price choices to profit more, and your overall market positioning.
If you want to learn more about these popular pricing trends, you can check out the blog article: Pricing Trends: What’s Ahead in Ecommerce. We can continue with recently popular price comparison tools in Europe. Let’s go.
Popular Price comparison tools in Europe
If several online shops offer the same product, online consumers are likely to be more price sensitive. A buyer may often discover at least five competitor online stores offering the exact same goods at different prices. So, for most online shoppers, finding the same products for the lowest price is the most critical consideration. For this reason, we have listed some of the most used price comparison tools in Europe:
- Google Shopping
- Shopping.com
- Shopzilla
- Bestlist.nl
- Idealo
- Webprice.eu
Are you familiar with these price comparison tools? Have you ever tried them? When we comprehensively searched price comparison tools in Europe, those were the most used ones. Please share your thoughts on these tools in the comments section below. Your ideas and experiences are precious to us.
You can have a deeper dive into the topic if you’re interested. Check out our blog article: Price Comparison Engines: Commonly Used Services in Europe.
See you next week!
