4 Tips for Using Smart Pricing to Increase Online Sales

by smallbizbee · 4 comments

The topic of increasing online sales through conversion rate optimization has been discussed in length recently and rightfully so. More and more online stores are looking at conversion rate optimization as a means to increase online sales, alongside traditional means such as increasing traffic volumes.

Four Smart Pricing Tips to Increase Online Sales

One area which is often overlooked, is using smart product pricing as part of the conversion rate optimization process.

1. Show The Customer How Much Can Be Saved

Whether or not your website has the newest features or hasn't been updated for some time, at the end of the day customers are looking to save money. They will often compare your prices vs the prices of their local store, so some savings has to be reflected and visible shown. Products will often come with an RRP or suggested list prices. Visibly show this price and your price as it's a very strong pricing message. My favorite way to display this message is ~~RRP $$~~ Our price $$ (% of saving or you save $$).

2. Waver Shipping Costs

Excessive shipping costs will often result in negative customer reaction and basket abandonment. Free shipping on the other side of the scale, will cause the opposite and result in a more positive customer reaction. Now, of course wavering shipping is easier said than done, but there are couple of tricks you could try. The first is to offer free shipping over a certain order value which works, but is very limited in its effectiveness. The second is to include the basic cost (to you that is) of the shipping in the price of the product. You will still need to ensure the end price is competitive, however the behavioral effect on the customer will be worth the effort.

3. Compare Your Prices To Others

If you excel in this area, don't be shay from visibly showing your prices and your competitor prices (just don't link to them ). Chances are your customers will first look around, research and compare prices anyway. By giving them all the information at once, this pricing strategy can help bring their buying decision forward. Pricing aside and looking at the overall conversion rate process, you could also compare availability and shipping costs next to each price.

4. Reward Customers Who Buy Multiple Items

A smart pricing strategy will reward customers who buy multiple items at one go. From the business perspective, more items means higher order value and more revenue. There are many types of rewards to consider from upgraded shipping (when the normal shipping is free), to discount off the total amount or even upgraded products. The principle is, if you want customers to spend more, you'll need to work for it.

Online shoppers often look for the web in order to save money. Pricing your products smartly will ensure you are still relevant.

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