Practical Pricing Strategies & Experiments For Your Shopify Store

Doing experiments on your Shopify store about critical features such as price is very important no matter what stage your business is at.

If you’re a new store, getting your prices right the first time is always a tricky task. You’re conflicted between wanting to charge the highest price so that you can to ensure a healthy profit margin but also your store is newly established so you don’t want to turn away customers. This tangle should lead you to make experiments on your pricing strategy. Just test it. You can try to stay dynamic and chase the market’s status.

There are many platforms used by ecommerce merchants.

Shopify is a very common one among others. Ecommerce is like a hot pot in which competition boils. For this reason, you need to take strong market steps. You should always be on the lookout. Running your business manually can be a complete waste of time. We recommend that you consider these when doing price experiments for your Shopify store.

If you’ve been running your store for a while, you might find that you’re reaching a plateau point where your sales are decent but stagnant. A price decrease (or increase) could help with that. How you can find out the answer is again trying out, testing and experimenting your steps to achieve success.

The good news is if you’re running your store on Shopify’s platform, they make it super easy for you to test your pricing and find the optimum point for your customers such as A/B testing and more.

You can check our blog post Shopify Price Experimentation: Testing Different Prices to learn more about what we have discussed here. It will help you to take the first steps to experiment your Shopify store pricing or encourage you to make changes to become able to leave your safe plateau.

Well after some experiments on strategies, how about expanding your customer network and selling internationally?

With more people starting to do their shopping online, it’s more feasible than ever to sell to a global audience. 4.54 billion people now have access to the internet. International selling allows you to broaden your reach and expand your business, as well as spreading the risk.

But of course, you should do it with a great calculation of your shipping and other costs which means that you need a strong pricing strategy. A good question to consider: will the profits from selling cross-border be worth your company’s effort to enter these new markets? Once you know which international markets you want to tap into, try calculating the cost of running international operations.

Automated software on the Shopify app store can easily help you to have multi-currency options for converting currencies for your customers at checkout, automatically rounding up prices to match your pricing standards and making refunds in foreign currencies without using a third-party app.

But to be successful and profitable, your pricing strategy must be informed by the right currency considerations, the correct shipping strategy, and accurate calculations for the metrics that matter.

We strongly recommend you to read How to Optimize Your Shopify Pricing Strategy for International Selling blogpost to have a better understanding of the topic. You can have a deep dive for your Shopify store’s international selling requirements.

A common fact is that managing a store in the competitive world of ecommerce is very difficult.

Running a Shopify store sounds like a good idea for many, but keeping that store profitable is what ecommerce owners struggle with. Without a proper profitable pricing strategy, your Shopify store will quickly end up costing you more money than it makes you.

If you want to keep your store profitable, think seriously about how you plan to ship your products and where to. If international shipping is a lot more expensive for you than consider simply domestic shipping options. And if you want to offer site-wide free shipping you should factor that additional cost into your plan.

The simplest way to calculate your margins is to take the total cost of you acquiring your products from the cost you sell them at. Some people create general stores when they first start with Shopify. This is fine but the difficulty you’ll run into is how to make your store stand out from the rest.

Whether you’re looking to improve your current store, or get started on the right track, if you’re not thinking about profit first when it comes to your ecommerce store, you’re inevitably going to leave money on the table.

You can check out our blog post: Shopify Profitable Pricing Strategy for the strategies to ensure your Shopify store remains profitable. We can meet in the comment section. That would be great to hear from you and your experiences…

See you next week on Prisync Medium! 👋