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
Categorie: 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
Categorie: 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
Categorie: 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...
Prestige pricing – what should you know about premium pricing strategy?
Categorie: Pricing strategies
Price competition is an everyday reality in a number of sectors and industries. However, there is a world where price doesn’t matter, and seemingly ordinary products can cost far more than you’d expect. Welcome to the high-end universe where the prestige pricing strategy is not only common but also highly appreciated. Examples of the prestige...
Product feed – what is it and how should it look like?
Categorie: E-commerce
To promote an online store’s assortment effectively, you need to present it in several channels – not only on your website but also on marketplaces and price comparison websites. We have discussed it in more detail in our article about multichannel selling and promotion. Additionally, to monitor your store’s performance and competitiveness, you probably use...
Price index formula – definition and how to calculate price index
Categorie: Pricing strategies
Every brand and every e-commerce business owner should be vitally interested in their price positioning. Why is that? Building a consistent pricing strategy is essential from the strategical perspective for building brand image. To manage it effectively and find out how your products are positioned on the market, you need reliable data about your competitors and...
How to maximize profit in e-commerce?
Categorie: E-commerce
During the Covid-19 times, e-commerce boosts. Only in 2020, it grew by 44% year by year in the U.S. [1]. This is an incredible increase in only one year. On the one hand, it gives great opportunities for e-commerce businesses to grow. On the other hand, the number of competitors grows as people are attracted...
Dropshipping – definition and pricing strategies
Categorie: E-commerce
Online sales have been steadily gaining popularity. According to Statista, e-commerce sales will increase by 14.3% in 2021. The growing competitiveness in this market makes entrepreneurs constantly look for new ways to maximize profit and optimize costs. That’s how the dropshipping model gained popularity. What is it, how does it work and what do you...
Target marketing in e-commerce
Categorie: E-commerce
Go far and wide or rather focus on a specific customer segment? This is a question almost every e-commerce business owner faces, and this is what target marketing is all about. You can generally think about your products and customers in two ways: By treating them like one mass or dividing them into narrow niches/segments....