CHAPTER 25 – HOW TO CHOOSE THE PRICES FOR YOUR PRODUCTS?

It often happens that our customers ask us what are the right prices to apply on the products of their e-commerce.

Maybe you don’t know, but when we deliver your DroppyBrands site we will take care of everything, providing you with a catalogue of the best fashion brands complete with suggested sales prices and a reference of the normal price applied in retail.

This is because we know perfectly well that creating pricing strategies for your e-commerce business is essential, but not so simple. Especially if it is the first time you have run an online business. You must certainly take into account the costs that you will incur for the purchase of products and marketing activities to promote them, but at the same time you must be competitive for your potential customers.

But don’t worry, by selling in dropshipping (therefore without warehouse risks!), you won’t have to deal with the production costs or pay the products in advance, since every time you make a sale you buy your products directly from DroppyBrands.

So what are the main strategies?

  1. costbased pricing
    the shipping costs and the profit to be obtained (always taking into account, as already mentioned, any expenses incurred for the promotion) are added to the cost of the product.
  2. competitionbased pricing
    it is a more complex strategy, but equally accessible to beginners. It consists in writing down the prices established by competitors for the same brands/categories and establishing an acceptable price range within which to move
  3. customer value-based pricing
    this strategy is a synthesis of the previous two: the “value” of a specific brand or product category is established, which corresponds to the union of the base price (obtained from the sum of cost, shipping and marketing) and the price applied by the competition.

Obviously the prices are not fixed. Strategies must have some flexibility, just as market prices do, to ensure you are always up to date.

Remember that you can refer to these three methods and with DroppyBrands you can change prices by category or by brand.

But don’t worry, if with DroppyBrands you leave the initial settings unchanged, the pricing strategies developed directly by our team of experts on the individual products will also be applied on your site.

In this way your sales will increase and you will always have a gross margin of 50% on sales! Not bad, right?

We really hope these suggestions will be helpful for your online business with DroppyBrands!