5 Pricing Experiments Your eCommerce Store Can Try Today To Increase Sales
Every eCommerce store owner wants to increase their sales, get more customers, have more profits, and reduce the ad spend on PPC and other platforms.
The first thing to do is usually run more PPC ads or participate in a marketplace such as Amazon or Walmart, then go to Google Shopping, etc. However, all these tactics have a cost associated with them.
What if you could generate more sales from your existing ad budget?
That’s something that most eCommerce stores try to do at a much later stage or never. But, there are easy price tactics you can try to increase your conversion rates throughout your eCommerce store.
If you convert 1% more visitors to customers from each product page, it would significantly increase both customers and profits.
So let’s see five pricing experiments you can run today to increase your sales from each product page.
1. Create Urgency By Changing Your Words
I am sure that you are running occasional discount offers (promos) daily for specific products like any eCommerce store does.
Most eCommerce stores create discounts by showing the original price, which is slashed and followed by the new lower price.
Of course, this has its effects, and a customer feels like they are getting a bargain. But, how can you show in a manageable and honest way that your offers won’t be there forever, so they have to get them now; otherwise, they will be gone?
Simply by adding next or above your price something like “Today’s special offer,” “Limited time offer,” “This week’s deal,” etc.
With a badge like this, the customer will know the price won’t be there forever, and you won’t have to necessarily change them in a day because most of them are vague.
2. Make Your Prices As Short As Possible
How do you feel about the following prices?
If you are like the people researched by the US Journal of Consumer Psychology, you would perceive the 4th option as cheaper or more attractive.
That’s because it’s smaller than the rest text-wise, and it appears to be cheaper.
Now, check how your prices in your store are displayed. For example, maybe you have a price such as 14.00 or 14.20. Can you change them to 14?
They should appear cheaper and thus lead to higher conversions.
3. Always End Your Prices With 9 or 7
This has to be the oldest tactic to make a price appear smaller than it is. There has been a debate whether 7 or 9 is more effective in the past years, but this is minor, and the principle is still sound.
Prices that end with 9 or 7 outperform their round comparisons. Even as consumers start to understand this tactic and the retailers try to do that to sell more, they still can’t help it.
It hijacks a shortcut to our brains that look only at the first two digits and ignore the rest. That’s why the .99 our brain rarely sees it, and if it does, it downplays it.
So, what can you do?
If you charge 20 for a product, make it 19.99 or 19.97. It can’t significantly impact your profitability, and it could increase your sales significantly.
If you want further proof, check all the major retailers that keep doing this, and they have hired many people to run these tests.
4. Price Anchoring
It’s a general rule for eCommerce stores, restaurants, and other retailers to have at least a couple of very expensive products in their offerings.
Almost no one will buy them, but that’s not why they are there. The reason is that they serve as an anchor for the consumers for the rest of the products to appear cheaper.
For example, if you sell a $19 and a $39 t-shirt, the second one looks pretty expensive. But, if you sell a $19, a $39, and a $59 t-shirt, the $39 t-shirt looks much cheaper now, and the $19 feels like a bargain.
To test this, you can show more expensive products in the related section of your product page and see if this will increase your conversions.
5. Change The Text Size
You can try one final price experiment whenever you have a discount; you can try showing the final price in a smaller font than the starting price.
Some groups of people will associate the final price with the smaller font to be even smaller because our brains can easily grasp the difference in the font size and thus in the price itself.
This depends on the group of people you are selling to and the country and cultural differences, so it’s best to run a small test before applying it everywhere.
I hope this article has given you some inspiration and ideas for pricing experiments that you can try in your eCommerce store to increase your sales.
For your thoughts or questions, make sure to leave a comment below, and I will reply as soon as possible.
Author’s bio: Alex Chaidaroglou is the director of Altosight, the most accurate price monitoring platform for manufacturers and eCommerce stores. It helps them do Minimum Advertised Price monitoring and competitive price tracking. He also blogs about digital marketing on his blog WeeklyGrowth.