The pricing models for ecommerce stores are determined by the strategies based on product cost, the brand or customers. The alternative pricing models are frequently used by the brick and mortar stores and now, online ecommerce stores try benefiting from them to get successful in sales. But I would like to warn you about all pricing model have positive and negative features and you need to find the most suitable one for your store.
Personalized PricingAnything personalized within the framework of ecommerce always helps the business owners to personalize their stores for their customers. So personalize your store prices and offer special prices to your special customers. But the point is that all huge companies and brands use “big data” to perform personalized pricing model professionally.
This pricing model is really useful for the online stores having a wide product range and getting new products very frequently. They can offer personalized prices to their loyal customers when they add a new product to their product range. This helps to create a good impression on the customers and persuades to continue shopping from here.
Some brands make discounts on the products with high profit margin. They may offer simultaneous discounts or promotions for the users who has added certain products to their shopping carts but not purchased them yet. This model requires extra time and effort since it requires immediate data proceeding and analyzing. But keep it in mind that it is one of the most effective method make the customers more loyal to an online business.
FreeThis pricing model does not mean giving away all your products and services to the customers unless you sell digital or software products. Selling at a loss is another strategy. You may offer the unprofitable products to your customers as free and direct them to buy other profitable products by the cross-selling and upselling methods. Prefer using this strategy for the products suitable to completing with other products.
A brand selling products special to some seasons and special days can attract new visitors to their online stores by offering sample products to them. These new visitors will take their own friends to the store and create a popularity effect in their minds about your brand. Another method is offering trial versions of some products and selling more comprehensive Premium versions in return for good prices. Most of software and mobile firms benefit from this method to persuade their customer to meet with their new products.
Pay What You Want (PWYW)This is a pricing strategy where buyers pay any desired amount for a given commodity, sometimes including zero and used by some physical stores. For example, Jon Bon Jovi’s restaurant doesn’t have a price list and anybody can pay what they want for what they have. This is difficult method to be applicable in online stores but you may try to use it for your loyal customers. And you can request your customer satisfied with your products to pay any amount they want.
Gamification is also very useful within this pricing concept. You can request the users to pay the amount they wan for a certain product. If they accept paying an amount above the product’s real value, you can reward them with a gift. But do not forget to announce these campaigns via social media tools to reach many potential customers, which also results in an increase in your website traffic and visitors.