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eCommerce Pricing Strategies that Drive Sales

By: Thomas Young

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.

Josh Derr
eCommerce Specialist
Intuitive Websites, LLC
Author profile
Thomas Young

Thomas Young is the CEO and Founder of Intuitive Websites. He is a consultant, award winning Vistage speaker and author of Winning the Website War available on Amazon. Tom has helped thousands of companies succeed online and has over 20 years digital marketing experience.

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