Good price management is essential to effectively develop your activities and grow business on marketplaces. The price management on different marketplace is very tough. Therefore, you need to develop a suitable strategy so that the prices of your products or services match the expectations of the customers. Here are some practical tips to help you better manage your prices on marketplaces.
How marketplaces work
When you offer services or products on marketplaces such as Amazon or Cdiscount , all transactions are carried out via online sales platforms. This operation is chargeable & you should determine the cost of commission on sales before registering in any marketplace. This generally varies from 5 to 20% excluding tax of the price.
You will only pay commissions if you sell. This is one of the main advantages of selling on a marketplace. However, some marketplaces offer monthly or annual subscriptions. It is up to you to determine the subscription method adapted to your needs and your activity.
Some of the best practices to adopt on a marketplace in terms of price
Since competition is fierce in marketplaces, it is essential to develop a carefully thought-out strategy to increase sales. Knowing how to juggle prices is first step to ensure your visibility on the marketplaces with competitive pricing.
It is important to align with the competition. Take the time to evaluate your offers before making any price changes. In the face of competition, sometimes you will have to sacrifice the profit to keep your customers.
Comparing prices is a very common practice among consumers. They are looking for quality products and services at the cheapest price. You must therefore learn to meet the needs of your customers without compromising your interests.
Adjusting the price to customer behavior is as effective as it is practical. For example, when launching a product, its price should be as cheap as possible. You can then increase it if there is positive feedback from your customers.
However, this price increase should be done with some tactics. To compensate, you can make a commercial gesture: free delivery, loyalty card, etc.
Some essential points to know about marketplaces
The marketplaces offer various tools to help you manage your rates and optimize your price management strategy. These tools allow you to save time and improve your user experience. Thanks to these tools, you can easily display crossed out prices, and get a chance to appear on price comparison sites, etc.
In addition to the price management tools, other tools are there in market which allow you to manage user reviews. This is essential since you will need feedback from your customers to effectively manage your prices.
The use of these additional tools may pay off. Find out beforehand before registering or subscribing to a marketplace.