On 27 November 2019, the Directive (EU) 2019/2161, more commonly known as the omnibus directive, was published. And, since it has just been transposed into national laws and must be applied by May, 2022, we decided to take a quick look at the most important changes that this new law introduces. Long story short –...
Category: Pricing strategies
Pricing trends in the electronics & household appliances e-commerce market: Interview with Jakub Kot, CEO at Dealavo
Category: Pricing strategies
This interview is part of the report “Trends in the electronics and household appliances e-commerce market“. Over the last few years, you had a chance to discuss the pricing topics with representatives of several industries. Have you noticed anything particular about the companies offering electronics or household appliances? Are their pricing needs somehow different? Jakub...
Effective sales promotions for e-commerce
Category: Pricing strategies
Sales promotions can be very effective when it comes to increasing sales and customer engagement in your online store. However, as always, you should start with a well-thought-out strategy. What should you remember about when it comes to sales promotions? What techniques can you use? And what mistakes should you avoid? That’s what we are...
Everyday Low Prices vs High-Low – what are EDLP and HL pricing strategies?
Category: Pricing strategies
Everyday Low Prices and High-low are two popular pricing strategies used in retail. How to recognize which one a particular shop follows? Which one can bring better results? How to make sure the chosen strategy is implemented successfully? Check our article to understand the differences between the EDLP and HL strategies! Pricing strategies in retail...
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...
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...
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...
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...