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...
Cart Abandonment Strategies: 6 Ways to Fine-tune Your Cart Recovery Approach
Category: E-commerce marketing
This article was created in collaboration with targetbay.com. Cart abandonment is an obvious scenario when it comes to eCommerce. It happens very often and it has now become a part of the consumer purchase journey. There is no amount of over-exaggeration in that statement considering the fact that 3 out of every 4 people who...
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...
Cost-plus pricing strategy – definition and usage in e-commerce
Category: Pricing strategies
In the e-commerce and retail world, pricing is one of the most significant elements of your business. After all, you have to ensure that your profits are high enough to run a business. That’s why you need an effective pricing strategy. Is cost-plus pricing potentially a worthy candidate for the optimal pricing strategy in your...
Online grocery shopping – a trend that is here to stay
Category: E-commerce
When thinking about e-commerce growth, one usually has in mind numerous offers for electronic products, cosmetics, apparel, etc. available online. Until recently, e-grocery wasn’t the first thought – in 2018, even in the US, as many as 84% of respondents said they were never buying groceries online, according to the Gallup poll. The COVID pandemic...
Value-based pricing strategy – definition and examples
Category: Pricing strategies
Every brand should thoroughly understand the role of pricing strategy. For customers, the price frequently indicates what products they are dealing with. Usually, expensive items are considered high-quality ones, while cheaper products – inferior. This approach is based on the assumption that price reflects the value behind the product. That’s why, in the value-based pricing...