Problem: Charging too much– or too little– for your products online.
When customers have endless options, price is king. What you choose to charge for your products can help you leave your competitors in the dust, or put you at the back of the pack. It’s not a decision to make without harnessing every resource available.
I strongly believe in the fact that pricing is kind of the vital element in e-commerce. More than 60% of consumers are stating prices as the main purchase criteria when they are actually buying stuff online. The reason why I’m saying is, that people don’t really like to admit it is that it’s not fun to compete on price. People are afraid of losing margins and stuff, but still, at the end of the day, pricing is absolutely vital.
Put Pricing on Autopilot– Let Software Do the Work
Instead of devoting valuable and tedious hours of labor to manually checking prices, leverage software to stay up-to-date on the market. It’ll make you more accurate, more efficient– and better equipped for growth, too.
We save a ton of time, but also at the same time, they also get scalability because when they try to do this manually they only try to focus on their top 100, maybe top 200 products, not the whole long tail assortment and so on. And they only focused on their key competitors. So they can still do a limited, let’s say, research, with their manual labor. We actually helped them to not just save the time, but also have time to scale this competitive intelligence that they can generate thanks to automation.
Tip #1: Bring Prisync On Board
Prisync is a versatile and effective tool to automate pricing for your site.
We are directly integrated with Magento and Shopify at this stage, but we also have an API which can be easily connected to any merchant platform that the merchant brings it to. But I would say our primary focus as of this year will be Shopify. because we see Shopify as a big opportunity because I think pricing is really neglected in this area.
Tip #2: Take Your Intel to the Max
Once you’ve automated the harvesting of competitor pricing data, it only makes sense to automate what happens next. Trust Prisync to dynamically ensure that your pricing is in line with the market.
We have this dynamic pricing that utilizes this competitive data and merchants can simply set up rules, like, if this, then that kind of rules, incorporating the competitor prices, their target profit margins. So they simply write down repricing rules and our automation simply follows those rules. And actually reprices the merchants’ prices accordingly.
Tip #3: Ease Up on Marketing
Marketing is more expensive than ever. As e-commerce enters a new era, focus on creating a business that’s got steak, not just sizzle.
They shouldn’t really any longer “spray and pray” with their marketing budgets. You know, they shouldn’t really waste a ton of cash just for unprofitable ad spending but instead, as much as they think about their customer acquisition strategies, they should also be thinking about their inner workings like their existing customers. For example retention strategies, more efficient shipping, optimizing their internal costs, technical costs, and stuff.
Tip #4: Be Optimistic
New software is leveling the playing field for e-commerce entrepreneurs. So, look towards the future, confident that you can slay Goliath in the long run.
Automation, commerce enablement tech, can really level the playing field for those less efficient merchants so that they can convert better, so they can merchandise in a smarter way so that maybe those merchants can really close that gap between Shopify and them. This will encourage more entrepreneurship at this smaller, medium-size level. So I really believe strongly in e-commerce entrepreneurship throughout the coming years.
Burc Recommends These Resources:
- Smart Pricing Tactics (E-book from Prisync)
- Crossing the Chasm
- The Economist
- Harvard Business Review
- Prisync Official Website
- Prisync – Dynamic Pricing on Shopify App Store
- Offer: Prisync offers up to a 50% discount for your first 3 months.
This interview is part of the How We Solve podcast. To hear more from industry experts who are solving everyday business problems, check us out on Spotify, Apple Podcasts, and on our website.
About the guest
How can people reach the guest:
Linkedin: Burc Tanir
Official Instagram: @Prisync
Official Website: Prisync