How to Avoid Pricing Mistakes on Your Ecommerce Website
Keeping your ecommerce prices competitive yet profitable requires careful management. Successful businesses review pricing regularly, sometimes more than once a day. However, they don’t check prices manually - they use technology. It keeps them in complete control, at all times. And it lets them display different prices to different groups of customers – effortlessly.
One of the quickest ways to lose revenue is to set a pricing multiplier and then fail to review it. The best method to manage prices and attract new customers is to use real-time data and automation. If that sounds a bit complicated, it isn’t. In this blog post, we will outline how managing pricing on your ecommerce website can be simple with the right tools. If you are an established business expanding your ecommerce offer, this guide will help you understand how your competitors stay on top of pricing trends.
How managing pricing on a website can go wrong
When you initially set the price of products on your website, there is a lot to take into consideration. You need to apply pricing rules that will take into account the initial cost of a product, any taxes, shipping and the overheads of your business. Don’t forget to factor in the cost of accepting online payments and the need to compare your prices to competitors’.
Managing pricing manually, including using a simple multiplier tool, poses significant risks. Here are just a few of them:
- Human error. You would be surprised how many businesses add or drop a digit when setting a price manually. This type of error can lead to heavy losses or a big drop in orders. Because humans are fallible, this type of error poses an ever-present risk.
- Showing different prices to different customers is almost impossible. You will need this feature to show lower prices to bulk-buying customers. If you can’t, they will go elsewhere.
- Pricing requires constant monitoring. What you pay for your products can be impacted by everything from stock levels and demand to external market forces. If you fail to keep a proper check, your pricing can leave you in the red or price you out of business.
- Updating pricing manually is extremely time-consuming. This adds a cost to your business, which may not be reflected in what you are charging.
- If the cost of a product drops and you are not aware, your competitors will be at a big advantage.
There is a better way to manage ecommerce pricing
We are advocates of using real-time data in pricing. That is why ecommerce platforms developed by Comgem offer outstanding levels of supplier integration. Our solutions mean prices can automatically update. Optimising the management of pricing on your website is much easier if your software takes into account factors such as:
- Supplier’s price
- A competitor’s price
- Type of product
- Minimum margin
If you sell a lot of products or supply a sector where the price of goods can change frequently, supplier integration and automated pricing is for you. It will change your prices to reflect your costs and ensure your products remain attractive to buyers.
Not only that, our pricing management features allow you to show different prices to different segments of your customer base.
Want to learn more about managing pricing on your B2B ecommerce website? Visit our website and download our new free guide to ecommerce solutions.