Therefore, Below is an easy-to-understand guide on how to follow a pricing strategy for your Lazada and Shopee products based on different market triggers. What Is a Pricing Strategy?
Basically, a pricing strategy deals with a set of methods or rules that your business can use to set the appropriate price for your Lazada/Shopee products.
While pricing and marketing are different arenas, they are closely related because setting the right price for your product is key to increasing your conversion rate.
As an online seller, if you fail to set your prices correctly, one of two things can happen:
What Are the Components of a Good Price Plan
Therefore, When you formulate a price for your product, it will produce the following results:
- Optimizing your product for visibility, click-through and conversion rate
- Give you optimized profits
- Help meet the specific goals of your product listing at its unique phase (launch vs steady state)
- Give you more sales and Latest Mailing Database profits
- You will be able to beat your competitors
- Therefore, Cost of goods sold (COGS) – this relates to your expenses in buying the products or materials that you invest in production
- Landing costs – relate to cost of goods sold (COGS) + all shipping and taxes to get the product to the warehouse
- Operational costs – the compensation you pay warehouse or customer service personnel (your staff)
Therefore, How Often Should You Change Your Prices?
With that said, a 30% to 50% discount on that price point will allow you to collect enough reviews to increase your credibility with potential buyers. If you’re not sure about your starting price point, AB testing is a good strategy to use to determine what will be most profitable for you.
Therefore, Split Dragon has an Canada email lead AB testing feature that allows you to automate the process. To learn more about this feature, you can read our post on AB Testing for Lazada and Shopee Sellers – Why And How To Do It .
As you build your credibility, you can gradually retrieve the original price of your product.