In times of hyper-connectivity, competition has become aggressive and owning an online business. Being in eCommerce can feel like a mad adventure. Not only will you fight to stand out from thousands of similar stores and drop shippers who may have chosen the same products as you, but you’ve also embraced a difficult journey against big online retailers.
So in this post, we’d like to share a few ways that will allow you to offer a reasonable price without sacrificing profits.
Know your game.
Find a reliable supplier. Compare at least three options before committing to one of them.
Being aware of different costs will incentivize a negotiation, allowing you to close a better deal.
Also, find a balance between quality and quantity. You do not want to purchase a 1000 piece stock only because it will be cheaper. You can end up with a bad product or an unreliable seller.
Become an expert.
If you’re thinking about creating a general store, know you’re at a disadvantage against big online retailers like Amazon or Target. Try to focus on a product you already know something about and that you feel that you can take it to a whole new level.
Knowing the product and the benefits it brings to people will help you to conduct a market analysis, determine your target audience and finally, it will lead to creating better content to attract customers.
This is also linked to the first point above. For example, let’s say you’re interested in selling candles. Either you want to produce them on your own or outsource the production to a local company, chances are that you will be able to find materials at acceptable prices that will reduce your overall costs.
Use a sentimental approach.
Build a brand, develop a story. Create an experience that resonates with your target audience and makes your customers become loyal and want to come back to support your business.
Write thank-you notes for your customers. Explain how much effort you’ve put into this and how much it means for you that they’ve chosen to purchase from your store. If something goes wrong, go beyond just making it right for them, let them know that you care - we all appreciate a little personal touch!
Keep it interesting.
Define all seasonal sales in advance. Throughout the year, there are certain dates when customers expect to catch a discount.
Create bundles or BOGO promotions using older stock. This can help you to continue selling products at a regular price while getting rid of not-so-popular pieces and without burning your margins completely.
With that in mind, consider that it isn’t necessary to reinvent the wheel when it comes to your pricing strategy. Look at how bigger retailers or your own favorite stores play with prices and then adjust to whatever feels right for your business.