Even if you have the perfect product for a captive audience, your online sales strategy is incomplete if it doesn’t include ecommerce price optimization. Pricing is one of the most impactful ways businesses interact with their customers, which means it should always be a prominent part of your business plan rather than an afterthought. Don’t worry if you’re already feeling behind the curve. This guide will walk you through the simple steps needed to make the most of your online sales.
Businesses looking into pricing strategy optimization have more variables to consider now than they ever did before. The good news is that they also have many more ways to ensure their prices are right for them as well as their customers.
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What is Ecommerce price optimization?
What is Ecommerce price optimization?
In short, ecommerce price optimization is the process of using data to ensure goods sold on the web and via apps are priced in the best way possible. “Best” is slightly reductive here, but we’ll get more into that after we’ve covered a few more key terms.
Actively optimizing prices is essential due to the principle of price sensitivity; that is, the price of a product determines how likely consumers are to purchase it. The quality of the product itself is another key determinant in purchasing decisions, but we already know you’re selling good products — the question is how to find the ideal amount to ask for them.
The principle of sales lift is also useful to know regarding pricing strategy optimization. This is an easy one: it just means how many more sales you get compared to baseline sales for that same product. The term is often used in reference to specific promotional pricing or advertising campaigns, rather than optimizations for the standard price of an item, so keep that in mind for any attempts to compare your figures.
Now we can get back to that notion of pricing your products the “best” way. For some businesses, ecommerce price optimization means going for the highest possible revenue: selling as many units as possible rather than trying to make the most amount of money on each individual sale. This is a common strategy for smaller businesses trying to establish themselves in the market. A better-established business, or one that deals in products with thin margins, may focus on making the most profit per sale instead.
You’ll need to evaluate your business’ priorities to decide which strategy will bring the results you desire. However you go, specialized tools exist to help you find your optimal prices.
The best ecommerce pricing strategy optimization tools
You could attempt to handle your own ecommerce price optimization process internally. It would be a matter of experimenting with different prices over time and seeing the impact they have on your bottom line. However, this standalone, manual process could make for a frustrating experience for whoever has to crunch all the numbers and implement the changes, as well as for customers who may notice prices fluctuating from day to day.
Instead, opting to use dedicated tools will allow your business to benefit from multivariate testing models that yield stronger findings in less time. It will also provide access to a solid baseline of knowledge to help with better pricing strategy optimization right from the start.
Here are the best tools for ecommerce price optimization.
Best for apps and NFTs: wappier
If your business includes selling via in-app transactions or NFTs, wappier comes out on top with the best machine-learning-powered tools built to meet your needs. wappier global pricing automatically adjusts prices to suit buying power for each supported region, and its promotional pricing tools make sure each individual gets the right price at the right time in their unique journey through your product.
Best for Shopify: PriceStack from Preflect
PriceStack is an AI-powered price optimization suite purpose-built for Shopify brands. It focuses on identifying non-verbal cues that make shoppers likely to buy products online, letting businesses automatically analyze these cues to increase sales. Formerly a standalone service, PriceStack is now part of the overall marketing automation services offered by Preflect.
Best for WooCommerce: ELEX dynamic pricing
If you run your store via the WooCommerce plugin for WordPress, you may be more inclined to do-it-yourself solutions. The ELEX WooCommerce Dynamic Pricing and Discounts Plugin will let you easily change prices across your catalog based on categories, combo deals, and more. It doesn’t feature any built-in tools for arriving at the best prices — that’s where the DIY part comes in — but its licenses are very affordable.
Best for Amazon: SellerLogic
SellerLogic’s dynamic Amazon repricing tool is built on two fundamentals. First, whichever seller gets placement in Amazon’s prominent “Buy Box ” for each product is by far the most likely to get the sale. Second, after your product lands that placement, it should be sold for the highest price possible to maximize profit. SellerLogic’s tool uses AI-driven price adjustments to keep your product in that sweet spot.
Best for subscriptions: Price Intelligently by ProfitWell
What if your business model runs monthly or yearly instead of a la carte? Price Intelligently by ProfitWell uses proprietary algorithms and a market panel to make sure your subscription tiers are priced just right. ProfitWell says optimizing pricing is 7.5 times more effective than simply focusing on acquiring new customers for subscription-driven businesses. It may pay off fast.
Time to get to work
Setting up your ecommerce price optimization means you can rest easy knowing your prices are pulling their weight. Although “rest” probably isn’t the right word, knowing most business owners. Instead, you can put that extra time you would have spent on manually adjusting prices and comparing results to other areas of the business that will truly benefit from your personal touch.
If you’re looking for even more ways to enhance your business, wappier has a full product stack of solutions for brands and publishers at work in the metaverse era. Our AI-powered technology will help you maximize revenue as you model, predict, and optimize customers’ behavior in real time, and it has everything you need to get started on the blockchain. Get in touch to chat with our team of experts.
