Whether you have your own eCommerce site or use a Piggybacking site like Click Market Online, you need to price your products correctly. If you price them too high, they will not sell, especially if you have lots of competition for your target audience. If you price too low, you’re not going to make any money and you will be wasting your efforts. So, how do you price products?
The Importance of Pricing
Having the right price for your products isn’t just about how much you will sell, but it is also about converting potential customers. When web visitors go to your eCommerce store, the pricing can pull them in or scare them off. Obviously, you want to pull them in and encourage them to buy in order to make money. Here are some considerations for setting your prices.
What is Your Baseline Price?
In order to set your price, you have to consider everything that goes into selling a product. You have to account for your advertising costs, distribution or shipping costs and production costs. If you’re making your own products, your production costs will be the time that you put into making your products. However, don’t think in terms of hourly rate, but in how many units you hope to sell.
Add all of your costs together and determine how much you would make after production costs have been subtracted. If you are using a Piggybacking eCommerce site like your distribution and advertising costs would be the fee you pay them upon each sale. Once you have the amount, you would make with each sale, multiple that number by your sales goal to get your baseline price.
Research Similar Products
Check out to see what your competition is charging for products just like yurs or similar to what you are selling. You can use your competitors’ prices as a guideline for your own. Just remember to consider your baseline price before you attempt to undersell your competition by featuring low prices. While you may sell more units, you may not make the money you need to keep your online store open.
If possible when you research other sites, try to find out how many units of the product they are selling. That will help you to determine if they are pricing the items too high or at just the right amount.
Consider What You Need to Make
Determine what you need to make from your sells in order to pay your bills and live the life you want. If you need to make 2,500 pounds a month, determine how many units you will need to sell based on your baseline price. Be realistic as you will need to produce that many units if you are handcrafting your items.
Setting the right price is one of the most important factors to your online success. There is way too much competition online for setting your prices too high, but at the same time, you need to take into account the amount of money you need to make for yourself.