Technology enables the automation of many repetitive and time-consuming processes in business. Today, it’s hard to imagine manually checking the same data in multiple sources every day or sending emails about the order status to every shopper. Automation of such processes guarantees: Time savings – thanks to automation, employees can spend more time on tasks...
Where do online shoppers look for product inspiration? Best ways to drive traffic to your online store
Category: E-commerce
When you sell online, you need to understand your customers. Where do they look for product inspiration and information? What is the most effective triggering factor to making the purchase? The latest report “The Behavior of Online Shoppers Survey 2021” prepared by Epinion and iPaper gives some interesting insights about customers’ online behavior, preferences and...
The bundle pricing strategy
Category: Pricing strategies
Selling more than one product at once can be profitable for both parties. You, as a seller, have the possibility to increase the average order value (AOV). Your customer, on the other hand, pays less for shipping and gets a discounted price. This is what bundle pricing is all about. Today, we want to show...
m-commerce – what do you need to know about mobile commerce?
Category: E-commerce
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...
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...