Wayflyer’s Post

Tired of discounting with no return? Let's change that. A quick guide to smart promotions. Consider the following tips for your upcoming planning session. Don't: -Use storewide discounts indiscriminately. -Get stuck in a loop of repetitive promotional offers, conditioning your customers to wait for the next sale. -Forget to disable other discount avenues (like cashback or code discounts), which can lead to customers double-dipping. Do: 💲Consider the full cost of promotions, which includes not only the discount but also the expense of promoting that discount. Think about using lower-cost channels like email to drive sales without paying for ads. ⬆️Aim to increase your Average Order Value (AOV). Change your strategy from simply cutting prices to offering bigger discounts for larger purchases. 🎁Experiment with bonus gift voucher offers. This gives consumers a great deal and an incentive to return for a second purchase, and you secure the sale without taking a big hit through discounts. This headline is from the recently released Aus Post eCommerce report—link to the full report in the comments.

"Slow shopping" is the new retail reality as shoppers take more time to consider each purchase. With credit card debt rising, price perception has never been more critical for retailers. Consumers are now researching deals, tracking prices, and being more selective about what they buy. To stay competitive, retailers must understand how customers perceive the value and fairness of their prices. By mastering price perception, you can find the sweet spot between profit margins and providing true value to price-conscious shoppers. Learn how to manage your price perception in this old and insightful read. https://lnkd.in/dMfwcq4c #ecommerce #pricing #retail

🛑 Stop the Pricing Panic! Struggling to price your products in this crazy ecom world? You're not alone! Forget the "one-size-fits-all" myth. Here's the tea: ☕ 💡 Value over Price: People pay for solutions, not just the cheapest option. Think "barista-quality coffee at home" vs. a basic machine. Which would you spend more on? 🔍 Competitor Check: Research what others charge! Can you undercut them, match their prices, or offer a premium experience that justifies a higher cost? Let's discuss in the comments! 💬 🚀 Dynamic Pricing FTW! Imagine prices that adjust automatically. Tech can be your secret weapon! 💰 Bonus Tip: Don't be afraid to mix things up! Combine these strategies and test different approaches. Remember: 🔑 Communicate Value Clearly: Make sure everyone knows WHY your product is worth the price. 📊 Test & Analyze: Don't guess! See how customers react to different pricing with A/B testing. 💥 Strategic Sales: Maximize profits by using discounts wisely. Limited-time offers and tiered discounts can be powerful tools! By understanding your market and goals, you can craft a pricing strategy that unlocks sales and makes your ecom biz BOOM! What are your biggest ecom pricing challenges? Share them below! #ecommerce #pricingstrategy #ecommercetips 💻📈

Cut Or Climb? The Returns Tug-Of-War That Keeps Making Things Worse When one goes up, the other comes down. That reality is one of the most challenging for retailers and eCommerce brands. There's a need to change your offer, but have the pressure of a competitor going after your clients when you do. Walmart announced that they are raising shipping rates for seller-fulfilled orders through their marketplace. At the same time, Mercari announced changes to their platform. Eliminating seller fees as well as changing their return policy. Walmart is looking to offset a very costly part of their business, while Mercari is looking to take advantage and entice more customers to shop theirs. Both policies are generating negative feedback from sellers that are the lifeblood of both of these shopping hubs. Interestingly enough, both platforms are doubling down on the opportunity for a consumer to get a refund without having to return the product - a clear signal to the astronomical operation costs associated with online returns. (I shared my best strategy to dramatically reduce returns in my newsletter a few weeks ago - it has NOTHING to do with better shipping and handling). These changes are another signal to small and medium eCommerce businesses about how careful you need to be with your channel management and the operating costs of each platform. Rules change. When they do, you don't want to stuck scrambling to mitigate incoming losses. How confident are you on what's happening on your sales floor or through your website? How much information are you tracking? Are you identifying your best (and worst) customers? Now's the time to fully integrate your execution with your sales data - and make changes before it gets too late into the year. -------- ---------- ---------- ---------- ---------- Would your network find this interesting? Be the first to get it to their feed by commenting or sharing Interested in Deeper Dives right to your inbox 1x/wk 👇 Take 10 seconds to paste your email here: https://lnkd.in/dCsUAauR Want to submit a question for me to write about 👇 AMA: https://lnkd.in/e3RjBiJD

Price elasticity is fundamental to understand how the demand for your products changes with price variations ➡️ This knowledge can be the key to optimizing your pricing strategies and significantly increasing your revenues in a competitive market. Here’s what you’ll find in our latest blog post: 🔍 What is price elasticity, and how is it calculated? 📊 The main factors that influence a product’s elasticity 💡 Strategies to manage price elasticity and increase profits 👉 Dive into the blog post and elevate your pricing strategy: https://hubs.li/Q02H2z9J0 #elasticity #pricingstrategy #retailinsights #ecommerce

🤔 Ever wondered how much people really care about a price change? In the world of e-commerce, that's where price elasticity comes in. It measures how sensitive customer demand is to price fluctuations. Here's the gist: High Elasticity: A small price increase leads to a big drop in demand (think luxury chocolate vs. candy bars). Low Elasticity: Demand stays pretty steady even with price changes (think gasoline or essential medications). ⛽️ Why is this important? Because it helps businesses understand how much they can tweak prices without losing a ton of clients. #Netflix in Action: Netflix famously uses A/B testing to play with different subscription prices for various customer segments. By analyzing the impact on sign-ups and cancellations, they can determine the price elasticity of their service. This allows them to: ✅ Maximize Revenue: Find the sweet spot where they charge enough to maintain profitability but not so much that people jump ship. ✅ Targeted Pricing: Offer different tiers or discounts based on customer needs and price sensitivity. This way, everyone can find a plan that fits their budget! So, how can YOU use price elasticity? Analyze your data: See how your sales change with price adjustments. Consider your product's value: Luxury items tend to be more elastic than necessities. Segment your audience: Tailor pricing strategies to different customer groups. Understanding price elasticity is a superpower for any business owner! Share your thoughts on price elasticity and how it impacts your buying decisions in the comments! #ecommerce #pricingstrategy #retail #demand

🚀 Importance of pricing in Ecommerce. It's not just about numbers, it's about the sweet spot between profit and pizzazz. Here's why it's so crucial: 🏆 Competitive Edge: Stand out in the digital jungle with prices that make your rivals jealous. 💰 Profit Maximization: Find that magical price point where sales soar and profits sing. 👀 Customer Perception: Let's keep it real – fair prices build trust faster than you can say "discount." 💡 Conversion Magic: Price it right, and watch those carts fill faster than a Black Friday sale. Ready to turn your pricing game from "meh" to "heck yeah"? Let's chat and sprinkle some pricing magic on your Ecommerce Empire! #Ecommerce #pricingstrategy #businesssuccess #customersatisfaction #pricingoptimization

Discounting is hurting your LTV more than you think (and a scary example). Many brands rely on discounts to acquire new customers or to patch up a lackluster conversion rate. But this discount hurts your LTV twice: 1.) You're losing immediate margin on the first purchase. 2.) You're probably acquiring a lower-quality customer. - trained to seek discounts in future purchase - often single category/product buyers (they just want the discounted items) Let's play this out w/ math: Full-price scenario AOV = $100 Discount Rate = 0% Expenses/COGS = $70 Orders/Customer = 1.5 LTV = ($100 - $70) * 1.5 = $60 Discount Scenario AOV = $100 Discount Rate = 25% Expenses/COGS = $70 Orders/Customer = 1.5 LTV = ($100 - $70 - $25 discount) * 1.5 = $10 (eek) Yikes, the LTV is very different. In the full-price scenario, you can have a break-even CAC of $60. However, if you use the same CAC target in the discount scenario you'll lose $50 per customer...and go broke. So should you avoid discounts? No, I'm not saying that. Every brand is different. Instead, do the math. Look at YOUR unit economics. Other considerations...  - higher margin brands have more opportunity to discount - if you have a lower CAC you can discount more too - look at creative discounts aside from direct $/% off (GWP, bundles, upgraded shipping, cash back on future purchases, etc.) - don't expect the same LTV out of all your customers. Segment them and treat them appropriately. - when you hit the bounds of what your economics support, pull back. Brands that thread the needle between acquisition and longterm profitability will win and grow. #marketinganalytics #ecommerce #uniteconomics #discountstrategy

A recent study found that 58% of online shoppers were unable to purchase products due to out-of-stock issues. Are inventory issues causing you to miss out on sales and disappoint eager customers?  🎉 Meet Boost Commerce's New Pre-order feature!  🎉 Keep sales flowing even when stock is low, or out of stock entirely: 💡 Secure Early Revenue Pre-sell products to boost cash flow before they even hit the shelves. 💰 Flexible Payments Offer full, partial, or no upfront payment options, to drive conversions and reduce abandoned carts. 📈 Optimize Inventory Use pre-order insights to forecast demand and avoid costly overstock. 🤗 Delight Customers Give shoppers the confidence to secure must-have items in advance. With Pre-order, customers can reserve products ahead of time, ensuring they get what they want and you secure the sale. It’s the perfect tool to turn potential losses into gains this holiday season. ⚡ Ready to transform your holiday sales strategy? Read our latest article to learn how: https://lnkd.in/dZ9BKm2F #ecommerce #sales #inventorymanagement #preorder #boostcommerce

💰 Discover how to use price matching policies to snag the best deals and avoid overpaying. Get insider tips, tricks, and strategies to make the most of your purchases. Become a savvy shopper—read the full guide now! 📚✨ https://lnkd.in/gdpNAkfu #PriceMatching #SmartShopping #SaveMoney #Fetchie