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6 Tips to Develop a Competitive Product Pricing Strategy for Ecommerce | Shopify

Do you know how much your products are worth? How low are you willing to price an item to compete with another ecommerce retailer?

With the advent of highly competitive pricing tools, winning the online pricing war can be a lose-lose for ecommerce retailers. Large online retailers like Amazon have an advantage in competitive pricing, as they can set the price low enough to run smaller retailers out of business. But there are other ways to compete – and it all starts with developing (or at least thinking about) an ecommerce pricing strategy.

Here are 6 tips that will help you develop an ecommerce pricing strategy:

1. Know your Margins

The reality of online retail pricing is that the lowest price doesn’t always win. In fact, pricing battles usually end with you pricing your products too low. Even with enough customers, you still may not make a profit. If you are lowering your prices to a point where you are losing money, you should consider finding a better source, or adjust your product offerings to include more profitable items.

Getting your online store into a pricing battle can hurt you in the long term as well. When you consistently price too low, your customers will always expect the lower price, even when it is unsustainable to your business. As a result, you could lose those customers over time.

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6 Tips to Develop a Competitive Product Pricing Strategy for Ecommerce.

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