How To Price Your Products As Ecommerce Businesses

Pricing your products as an ecommerce store owner can be one of the most difficult jobs you will ever do in that business. Although pricing is not always a deal breaker for consumers, as often they are not simply looking to buy the cheapest product, it’s always an important part of the equation.

In essence, you have to figure out the right balance of profit-making per unit and the optimum number of purchases. There are plenty of strategies to price your products and help you do the above, but the best way is to usually mix at least 2 strategies.

Pricing can really make or break your ecommerce business, so it’s important to spend enough time here to get it right. Also, don’t forget that depending on your overall strategy you can add other tactics into the mix to increase the profit from each customer and their lifetime value.

Before we dive into the strategies, let’s get our facts straight first. You need to know the following before you develop a pricing strategy or formula:

1) The margins of your products.

This is relatively easy to do. You calculate the cost of each unit of a specific SKU (transit to your warehouse and any other fees included). Then you try different prices and you simply follow this formula:

(Price – Cost) / Price

This simple formula will give you your margins for each product. Under no circumstances should you put a price on that product that results in a negative number.

2) Cost of advertising.

Are you going to advertise your products? Chances are that you will and most probably online.

You should add to your costs the cost of advertising to promote that specific product or simply divide it between all your SKUs.

For example, if you spend $3K each month on Google AdWords to promote your products and your ecommerce store, you should divide that between all your products equally.

With those 2 basics out of the way, let’s move on to some simple pricing strategies for ecommerce businesses old and new. Remember that you can use any of them or ideally a combination of them. What works best for you will depend on your location and market, don’t blindly copy others.

Pricing Strategy 1: Cost-based Pricing

This is one of the most popular and simplistic pricing strategies both for ecommerce stores and brick and mortar retail stores.

The way it works is by simply taking the cost of a unit as identified in step 1 (transportation and other variable costs included) and then either simply add the desired margin on top of that or a simple fixed amount of money that you deem optimal. The total amount will be the final price of the product.

The 2 challenges with this approach are that you have to figure out the exact cost of each unit without forgetting any costs out and that you have to know that cost in order to always stay above it during promos etc.

If an ecommerce business has really nailed down its operations aspect of the business they can easily utilize this method with minimal effort.

How much overhead you will add is up to you, but usually, the employees’ salaries are left out of the equation.

The second tricky part is how much profit to add. A part of it can be done from experience and another part (or the whole part) from tracking competitors’ prices that sell the same or similar products.

Pricing too high or too low can cripple your sales. Doing a check of your competitors by hand first and then regularly with a software can help you stay on top of them.

Pricing Strategy 2: Market-oriented Pricing

Expanding from the last section of the previous strategy, this strategy is also called competition-based strategy and it factors in what your competitors are doing and in what condition the market is in.

This is a good strategy for commoditized products and if you can compete on price. Usually, this is paired with another pricing strategy like #1, cost-based pricing. In essence, it helps you identify when to lower your prices in order to get more sales, but without compromising your profitability from #1.

Not only that but when your products are too low, you can also increase that price, remain the cheapest vendor and squeeze that extra profit.

Pricing Strategy 3: Consumer-oriented Pricing

This is also called value-based pricing and it’s usually for non-commoditized products. In these cases, the value is usually sold and the price has just to be reasonable.

For example, a novelty product that might not have direct competitors can follow that pricing strategy, while highlighting its benefits over older or other competing products.

Conclusion

Focusing solely on revenue and number of sales might prove disastrous if you don’t have a solid and profitable pricing strategy. By utilizing pricing tools you can always stay competitive and paired with the right pricing strategy you can keep your sales and profits up and to the right!

5 SEO Tips For Your Ecommerce Website

SEO for the Ecommerce website can be quite overwhelming. There are various web design companies who are providing the SEO services to all large and small Ecommerce business websites. Whether it is small scale business or large scale business, your website should be easily found by your prospects. In the present day, creating a trading website is not only the solution, but it is required that your business should also appear on Google’s first page. Thus, SEO has become the essential requirement for the Ecommerce websites and here are 5 tricks to optimize your Ecommerce website and they are:

Keyword Selection: Selection of the right keyword is the key to rank up your business on the search engine. You should take the time to research your competitor’s keywords and pick the similar one that has gained the highest visibility. Remember, long tail keywords have more chance to rank up on Google’s first page.

Avoid Repetitive Content: This is true that content is king. You should write the unique and informative content, which is easy to understand and free from repetitive words. Do not try to copy the content from the competitor’s website because Google bots are smart enough to detect the plagiarized words.

Optimize Your Product Image: Ecommerce store rest on the bedrock of the product images. The product images can pump up your sale because images make the vision of the visitors clear and they become rest assured to deal with you, as they consider your company the right choice that can keep their users satisfied.

Optimize Your URL Search Engine Crawl: URL’s are very important for the SEO. The optimized URL’s allow the search engine robot to search what is written on your website if the content is relevant to your business URL’s ranked-up on SERP’s. Apart from crawling the website appropriate URL also increase your website indexation.

Avoid Broken Line: To give your target audience the great experience of browsing your website, broken lines should be avoided. It is no surprise that visitor is not expecting the error like “Page 404 Not Found” while clicking on a specific page. That is why broken links are a terrible idea.

These all tips can help to increase and maintain the visibility of your website 24*7 in a day on SERPs. Following these tips, your target customer can easily approach you and can be easily converted into the potential customer. So, don’t hesitate to contact the website designing company, but make sure you choose the right and trustworthy company, call now to share your requirements.

Why Ecommerce Website Is the Need of the Hour for Your Retail Business?

From new companies to expansive ventures with well-known brands, relatively every organization is picking up an advantage from their eCommerce site where they can offer their particular items or services. In the present focused society, buyers never again search for adventures on the high boulevards to purchase merchandise or items; instead, they use online assets for their shopping accommodation.

“According to Statista report, in 2017 eCommerce was responsible for around $2.3 trillion in sales and is expected to reach $4.5 trillion in 2021.”

This is the place internet business sites gain ubiquity in the market. Numerous retailers are favoring this choice to offer their items on the web. There are immense advantages of internet business sites and here are a few motivations to pick an eCommerce platform for your business:

Extends Your Brand

Consistently the number of online clients expanded by some rate and half of them invest energy in seeking and shopping of items. Thus, web-based business site can be a viable device to expand your brand image alongside internet showcasing services and eCommerce life utilities.

This will enable you to grow your items and administrations to a full degree while making your business famous in the online commercial center.

Comfort of shopping

Have you ever wish to go out shopping late at night or have required a few products on dire premise? Online business sites are accessible every minute of every day to buy products whenever and with quick coordination, it will be an additional favorable position.

Also, individuals don’t generally have much time to go out and look through the things they need to purchase, so they go online shopping for those things. This demonstrates the online retail business is exceptionally advantageous for shoppers since it has no time requirement.

Focus on a more extensive engagement of people

Web is a huge field where you can discover billions of clients web-based, hunting down something, or creating something applicable to them. A large number of clients may look for merchandise and ventures for their benefit. Ecommerce development can take your business to them and achieve a vast amount of online clients.

Subsequently, you can focus on a substantial number of engagement of people through your web-based business and satisfy their necessities with your items and administrations. At the point when clients discover your site essential and helpful, the movement will increment and draw in more groups of onlookers.

Displays launching of services or products

There are a wide variety of internet advertising devices and practices that can be used to make your site prevalent among online clients. Internet business is where you can get best-promoting open doors that can get quality movement on your website. Most conventional advertising systems are SEO and SMO, PPC, content showcasing and some more.

To set up an eCommerce website for your business, you will require certain things, for example, a group of best eCommerce business site designers, online advertising techniques, a god spending plan and some an opportunity to actualize your thought effectively. Internet business has everything that can make your image mainstream through online assets.

After everything, you need to decide, go for something which you can control in the future when your business will expand. Don’t be in a rush. You can check our blog on things to remember before developing a website.

Read more about Magento vs Shopify: Select the best platform for your eCommerce

Free Conference Call Services – Why Find Free Web Conference Call Hosting

Web conference call services have made a revolution in the conference calling world. Now you can hold and manage your conferences anytime or anywhere simply using your laptop and the Internet.

You know how web conference call services are becoming more and more popular instead of traditional phone line conference services. Because it is easier to use, faster, and automated.

And as if all the benefits already wasn’t enough, web conference hosting companies are coming with more ideas to improve it even better and win more customer by offering free conference services.

Yes, the good news is, now you can run your own conference call on the Internet and use all the powerful features… for free.

But doesn’t it sound too good to be true?

Wise question. So let’s find out…

What Are the Pros and Cons of Free Conference Call Services?

Even though they may sound amazing, there are a few things you want to be aware of.

There are dozens of companies that offer conference hosting for free, and even though they all may claim to be the best in the market, you and I know it can’t be true for all of them.

Naturally we have great services, average services, and even terrible services that you want to stay away from.

But the good news is, there are a few top quality services that offer you such a great service that you will find is even better than many paid ones out there.

So how can you find out which conference call hosting service is the best for you?

There are a few important factors to look for when comparing them together. Also there are some very important questions to ask before, so you know you’re getting the best deal.

Language Issues – E-Commerce Website Solutions

It is suggested that the only way to do business successfully in other cultures is to adapt to those cultures. The phrase “think globally and act locally” is perfectly describes this approach. The main step that an online business usually takes to reach their potential customers in other countries is to provide local language versions of their Web site. This means you will need to translate e-commerce Web site into another regional dialect or language. According to a research, customers are far more likely to purchase products and services from the websites in their own languages. Only about 400 million of the world’s 6 billion people learned English as their native language.

Researchers also analyses that only fifty percent of the content available on the Internet is in English and more than half of current Internet users do not read English. International Data Corporation predicts that by 2010, more than 80 percent of Internet users will be outside the United States, and 65 percent of electronic commerce transactions will involve at least one party located outside the United States.

Even many languages require separate dialects and multiple translations. For instance, Spanish languages spoken in Mexico, Spain and Latin America have different dialects. So, it is important to check and translates the differences between the spellings and word meanings. Usually, many companies translate their website pages. When the web company grows larger, they become more selective in their translation efforts. Some e-commerce websites have thousands of webpages with much targeted content; the web businesses operating those sites can discover the cost of translating all pages to be expensive.

The decision whether to translate a specific webpage should be made by the corporate department responsible for each page’s content. Remember, that the home page of an e-commerce website should have versions in all supported dialects and languages. E-commerce website pages designed for product information, marketing and brand establishment should be given high priority of translation.

Different approaches can be appropriate for translating the different types of text that appear on an electronic commerce site. For key advertising messages, the touch of a human translator can be crucial to capture subtle meanings. For more routine transaction-processing tasks, automated software translation may be a satisfactory alternative. Many of the companies in this field are working to improve software and databases of previously translated material that can help human translators work more accurately and efficiently. The translation services and software manufacturers that work with electronic commerce sites do not generally use the term “translation” to describe what they do.