How webshops build a positive price image

PRICE STRATEGY With a well thought-out strategy, retailers can avoid the often tough price war on the web and secure better margins. A positive price image plays an important role in this. The Internet World Trade Fair has compiled six factors for online retailers that influence a positive price image.The high level of price transparency online creates massive competition for retailers: whoever is at the top of the price comparison rankings, even if it is only two or three cents less, attracts the most potential buyers and therefore has the chance to increase sales. For the vast majority of shoppers, price is still the most important criterion when choosing a store. This is a major challenge for web store operators: they have to determine a price that is interesting enough for potential buyers so that they don't sit on their goods, while at the same time offering enough margin to make a profit. The Internet World trade fair shows webshops the most important factors in finding the right pricing strategy.1st assortmentThe product range plays a key role in pricing. If a retailer offers high-quality goods or only branded goods, it does not want to be perceived as a discounter, but instead focuses on a premium image. It is important that the product range and image are carefully coordinated, otherwise the retailer will quickly appear untrustworthy.2. price perceptionAn important factor is the customer's perception. This perception can be massively influenced by the store design, the colors, fonts and symbols used as well as the use of certain terms.3. relevant price rangesA retailer should cover all relevant price ranges for each product group. These can be determined by observing the browsing and purchasing behavior of your own customers, the pricing of competitors, empirical customer surveys or also through experience, for example of the buyers or product group managers in your own company.4. correct pricingAnother important component is the correct pricing of selected items within the product range. Key products, also known as frequency drivers or hot items, are items that are highly relevant to the customer and are the first to end up in the shopping cart. It is important to price them attractively in the competitive environment, i.e. to position them as bargains. Main products are the long-term sales drivers. Prices can be moderate here, as the products are bought as standard. In most cases, customers do not even know exactly how much the items cost. By-products, on the other hand, are real profit generators. These are items that supplement the standard purchase or end up in the shopping cart as a suitable additional product. The price for these products can sometimes be higher than the average competitor price.5. own brandsIt may make sense to develop a multi-brand strategy in order to cover different price segments. This may also be possible with private labels. They have the advantage that the products are not so easily comparable and customers develop a feeling for the value and the right price for a product.6. actualityThe life cycle of the item and seasonal factors ultimately determine when an item goes on sale. This raises the question of what price the customer is willing to pay and what the stock situation is. To this end, the purchasing and browsing behavior of your own customers can be compared with stock levels to determine the best price. However, this does not mean that the price can actually be reset every 24 hours. This is because consumers react extremely sensitively to overly frequent price adjustments.