eCommerce Pricing Tip: Demonstrate a Clear Savings
Web shoppers are well aware that discounts can be found online with a minimal amount of research. Be sure to demonstrate a savings on your product pages to reassure the shopper that they have found a discount compelling enough to dissuade them from comparison shopping.
A good strategy to accomplish this is to employ three pricing levels: Retail Price (aka MSRP), Our Price (aka Everyday Low Price), and Sale Price (if applicable – as a rule of thumb, no more than 10% of the products in your store should be on sale). With this model, each product shows an everyday discount from the Retail Price, which gives the shopper a sense of confidence in the store as a whole.
The difference between the Retail Price and Our Price should be compelling, without seeming overblown or arbitrary. In most cases, a 15% – 20% savings on the Retail Price is ideal. Sale prices should reflect a 10% – 15% savings at minimum. This strategy does not apply to all brands or product categories, but for the vast majority of online retailers, it’s a fundamental element for increasing sales conversion. E-Commerce Web users want to know there is an obvious price advantage when they buy from your Website.
Intuitive Websites, LLC