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After Black Friday and Cyber Monday, November ends and eCommerce companies must revise their pricing strategies and prepare for their Christmas campaign. They must set the sales aside and restructure the prices in their catalogues in accordance with their market objectives to increase their revenue. With the closing of the fiscal year just around the corner, an increase in sales in the month of December will allow the eCommerce business to reach 2021 with positive results. To achieve this, we at Minderest recommend using an efficient repricing tool and following the advice from our experts.
Analyse your eCommerce sales volume for November
As an initial step, we recommend carrying out a detailed analysis of the outcomes you achieved in November with the different actions that were implemented. The marketing and pricing departments should review the demand, the sales volume, and the return on investment for the campaigns launched to attract customers. Based on these results, you’ll be able to begin making decisions regarding your upcoming prices.
At the same time, you should examine your stock and how your distribution channels functioned during the large events in November. If distribution times weren’t optimal, there’s still room for improvement in the run-up to Christmas, which is a time of the year when eCommerce businesses compete with giants like Amazon that can guarantee delivery the day after purchase. Unifying all of this data in a pricing suite will allow retailers to accelerate decision making, thus optimising the company’s operation.
Choose the most appropriate pricing strategy
After this analysis, defining an appropriate pricing strategy is essential. We recommend avoiding the low price strategies and opting for competitive prices instead, given that the demand for your products will increase considerably. In this situation, the goal is to offer high-quality products than the competition and attract the attention of possible customers. For this, we can use:
- prices based on the competition
- inflated prices or price skimming
- psychological pricing
- pack pricing or bundle pricing
Prices based on the competition
Prices that are similar to those of the competition attract your target audience to your brand. This tactic carries little risk and maintains your profit margin. It’s especially effective in markets with elastic demand.
Inflated prices or price skimming
Higher than average prices can be applied to exclusive, limited edition, and recently released products. Christmas collections of clothing and footwear, sold at a higher cost, are a clear example of this.
Psychological pricing
Psychological pricing plays with the users’ perceptions and emotions. In a situation that’s so competitive, choosing tactics like rounded prices or odd numbers can make all the difference. This strategy includes prestige pricing, applied to products considered to be high end.
Pack pricing or bundle pricing
This consists of offering a different price for the purchase of several similar or complementary items. In addition to offering the client added value by anticipating their needs, you also make it easier to buy Christmas gifts.
To optimise your eCommerce sales, any of these proposed strategies would go hand in hand with continuous competitor price monitoring. Knowing the prices of the other companies in your sector will allow you to anticipate market changes. To perform this task, there are automated tools that you can use to monitor the prices of the competition, which give real-time results with greater accuracy.
Find out how Minderest can take your business to the next level.
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