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Eight Psychological Pricing Techniques to Test on Your E-Commerce Store | MarTechSeries

Psychological Pricing Is a Strategy Which Is Based on the Idea That Prices of Certain Products Create a Greater Psychological Impact in the Mind of a Consumer. Pricing Strategies Are Important Components of Growing Your E-Commerce Business and Increasing ROI

Warren Buffett had quipped, “The single most important decision in evaluating a business is pricing power. If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. ”

Pricing strategies are important for any business to succeed.  An unprecedented growth in online consumerism has led to proportional rise in e-commerce businesses. Pricing products or services act as major influencers in a consumer’s preference within a buying process. Pricing an item too low may increase chances of losing a significant profit. Whereas pricing an item at a higher price may cause customers to alienate themselves from the brand.

Some e-commerce websites tend to have products that are unique and have a winning streak associated with it. Yet, the efforts may be in vain if you don’t have the power to convince customers to buy the product. Why would they buy your product? Attractive prices and features bundled together may seem like a good place to start!

What is E-commerce Psychological Pricing?
Implementing strategies which can help increase profits and conversion rates can influence people to buy products and be frequent customers.

E-commerce psychological pricing is a concept which uses the power of a price tag to influence people during a decision making process. Creating prices which help in pandering a consumer’s beliefs towards making the purchase decision successful is what sums up to be an e-commerce pricing initiative.

Implementing psychological pricing for many e-commerce owners is the source of revenue and profits which can then be layered across an entire business.

In What Ways Can You Tackle E-commerce Pricing?
Consumers have an inclination towards responding to certain types of pricing techniques. Appreciating how to strategically price products and run successful promotions in this world of e-commerce sales is the key to success. So if you want your consumers to forgo their inhibitions and make the right choice of purchase, following are the tips that can be implemented for the same;

Freebies:
The word “free” brings about a lot of exciting emotions and entices people to buy products, though they may not have intended to buy any in the first place. The BOGOF (Buy One Get One Free) concept has always been around in brick-and-mortar stores, but applying the same to e-commerce stores is known to be just as successful.

Offering free delivery is another added bonus. 28% of shoppers are known to abandon their shopping carts due to unexpected delivery charges. Amazon Prime is an excellent example of offering free delivery.

The Effect of Number 9
Generally, consumers are known to prefer paying less for products and often associate prices with discounts and bargains. Knowing the power of 99 is also what psychologists call the “left-digit effect” wherein consumers see the price and round it down, instead of rounding it up.

This is the reason companies like Apple price their products at $129.99 instead of $1300. The $0.01 makes a positive difference in sales surprisingly. Ending a commodity’s price at 9 would be more appealing to shoppers though they may not even be looking for discounts, yet they would go ahead and finalize a purchase.

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Eight Psychological Pricing Techniques to Test on Your E-Commerce Store.