Smartphones have triggered a massive revolution in the way we use the internet. Thanks to them (and other mobile devices), we are online 24/7, and the mobile internet is in no way worse than the desktop one. Our smartphones enable us to find the information we need, look for a nearby restaurant, and, yes, shop...
Author: Aleksandra Holownia
Price & cost escalation – definition, meaning, factors and effects
Category: Pricing strategies
When your business starts operating internationally, there is a whole set of new challenges and issues waiting for you. Price and cost escalation is one of the critical ones, as they directly affect the prices of your products and, thus, your business performance. In this article, we are going to take a closer look at...
Marketplaces and auction websites
Category: E-commerce
The two largest e-commerce companies in the world (Amazon and Alibaba) are marketplaces. Nowadays, the e-commerce world is shaped not by single online stores but by extensive shopping platforms, which are, right after Google, the main source of product information for millions of customers. In this article, we are going to take a closer look...
Pricing in online retail – when is it key? An interview with Francesco Donato
Category: Pricing strategies
Prices influence the strategy and the image of the company as well as its profit margin. That’s why it’s usually treated as a key element of the company’s strategy. However, there are situations where an online shop should focus on different elements. What are they? Read the article with Francesco Donato, Head of Pricing at...
Target return & target pricing – what is rate of return with examples
Category: Pricing strategies
Today, we want to show you two approaches to setting the perfect product price that work opposite to value-based pricing or cost-plus pricing. In target return and target pricing alike, you start with the desired price and then adjust all the other elements to it. Does it sound unreasonable to you? Let’s check that by...
Loss leader pricing – definition and examples
Category: Pricing strategies
Attracting a customer is a large part of success in retail. Led by this assumption, some companies decided to go with something called loss leader pricing. It’s a pricing strategy where you attract customers to your online store by selling one particular product below profit. However, as you will shortly find out, there are more...
Free shipping – how to use it to increase online shop’s earnings?
Category: E-commerce
Customers are more and more used to free shipping. The reason is the popularity of such programs as Amazon Prime or Walmart+. Some of the online shops implement it as well – to attract more customers but also to increase the average order value (AOV). Is it worth it for an online shop to offer...
What is the future of retail and why do we still shop locally? Interview with Karsten Holdorf (gap intelligence)
Category: E-commerce
We all observe the shift towards digital in retail but there are still several challenges that it doesn’t cope with. Why is virtual shopping not ready yet to replace analog shopping for high-priced products? What was the impact of the pandemic on purchasing behavior at local stores? Karsten Holdorf, Managing Director at gap intelligence GmbH,...
Direct-to-Consumer (D2C/DTC) model – why is it getting more and more popular?
Category: Distribution, E-commerce
For the past years, the D2C (direct to consumer) sales model has been gaining popularity – more and more manufacturers have decided to open their own branded shops or sell through such channels as Amazon. What are the advantages of this model? What do brands have to pay attention to when making a transition to...
How to build effective cooperation with retailers? An interview with Agata Mossop.
Category: Distribution, E-commerce
Agata Mossop, VP Channel Development at Lenbrook International, shares her insights on how to build a distribution network suitable for a particular brand, combine the direct-to-consumer approach with selling through distributors and attract the attention of the customers of an online shop. Aleksandra Hołownia, Dealavo: In recent years, you have cooperated with distributors and explored...