It should come as a surprise to exactly no one that product pricing is the most prominent driving motivation behind purchasing decisions for more than 60 percent of people who shop online. The internet is a perfect venue for price-shopping; before ecommerce became a big thing, prospective buyers relied on search engines to comparison-shop.
Now that sites dedicated to performing meta-searches and offer best-price selections are flourishing—some estimate that one in five online shoppers consult them—it’s tempting to try to get in on that trend. Even if you don’t make the sale, your business is a discovery for someone who may be intrigued enough to come back.
Depending on your volume and longevity in the business, you may prefer to work on a cost-based pricing model. This is a non-discretionary mathematical formula that incorporates your cost of purchasing and your target profit, and assigns a price per unit.
Sounds simple? Perhaps. But there are variables that throw a monkey wrench into this strategy. Your actual wholesale cost may not reflect overhead and other factors that alter the per-unit cost you shell out.
It’s a new year, and a new chance to evaluate your strategies as an ecommerce player. Maybe you’ve noticed the proliferation of ecommerce giant Amazon.com, which is quickly becoming the Microsoft of the computer sector. Amazon CEO Jeff Bezos is determined to dominate the online sales market by expanding offerings and by snatching up ancillary entities such as delivery services.
What does this mean for you? More opportunities. And approaching the Amazon sales model is always a wise choice; by all accounts, they are the venue of choice, surpassing even eBay for vendors of new merchandise. Ecommerce experts estimate that 2 million sellers sold more than 1 billion items on Amazon in 2015. That number is expected to escalate quickly.
Amazon’s sea of opportunity is competitive. There’s no getting around that. If you’re peddling goods that are not custom-made, it’s likely you’re going up against other sellers who may be larger and selling at volume, or smaller and willing to accept a lower profit margin.
All of this means you’ll want to keep an eye on your bottom line—your pricing. The most customer-friendly policies and business model in the universe won’t lure pure price-shoppers away in many cases. This doesn’t mean you should be forced to undersell yourself, but just to make sure you’re offering a deal you can live with.
Enter Amazon “repricing,” or a tool Amazon uses to push their own branded and sponsored merchandise above yours. They scan pricing for like items by using automated analytics software, and reduce their pricing accordingly. Does this put you at a disadvantage? Yes. Is it insurmountable? No. Why? Because you also have access to that strategy.
There are several apps and programs out there that allow you to track pricing of the goods you sell on Amazon. You may adjust pricing the minute Amazon does, and also monitor your third-party competitors.
To honor the start of a new year, we’ve identified four tech companies that we expect to make a huge impact in the retail space in 2018.
Amazon is seemingly at the center of the Internet, but for up-and-coming entrepreneurs aiming to put a product in customers’ hands as soon as possible, there are young companies that are working to make retail tasks less intimidating.
Particles is going on a little vacation in celebration of the winter holidays.
We wish you a wonderfully peaceful holiday season, and hope that you'll join us when we return with a brand new post on January 4th, 2018!
Happy New Business Year
If you think the pace for technological change is mercurial, you are absolutely correct. With the digital platform came a seemingly endless array of possibilities to make things bitter, better, and more voluminous.
If you run a business that is centered around the internet, your need to keep up with these changes can’t be overstated. One of the most distinctive will be a need to confront a change in the way people access the internet. Mobile devices are quickly topping desktop and laptop computers as the consumers’ go-to media, so it stands to reason that 2018 will see a significant transformation. If Google moves on this and makes 2018 the year of the mobile-first index, you won’t want to be behind the 8-ball. Keyboards rank far differently when it comes to mobile versus desktop content, and showing up in searches may require you to update your SEO strategy.
Many SEO experts foresee a move toward “dense content,” or a reduction in volume that still manages to preserve the information you want out there. This is consumer-driven; if potential customers are tired of wading through scads of overused copy, you may just lose a sale.
How a popular ecommerce tool just became more useful
Late last summer, Google rolled out a new feature in its impressive AdWords offering, and we think it’s worth a mention. It’s called a “search card,” and before we expand, let’s start with a primer on AdWords.
Anyone using AdWords is familiar with its one-stop shop concept for vendors who may be too low-volume to invest in a major commerce infrastructure just yet. It provides an auction-based method of pushing your products up the chain of search results that appear when potential customers go looking for what you’re selling. Ordered search results can be gold, or they can render your hopes moot, depending on where you place when all is said and done.
AdWords provides a path to zeroing in on the way your products are searched for, and how to improve your chances of showing up as a hit. Its individual variables are known as “cards” that categorize different functions relevant to a keyword search strategy. With the addition of search cards, you now have a pretty reliable method of refining your keyword tags in a manner that will bring better results from those potential customers you just know are aching for your goods.
Boosting Sales with Facebook
As 2018 approaches, it’s hard to imagine that smart ecommerce merchants are not already present in the social media stratosphere. But it’s a fact. Building a business is time-consuming, and attention to more pressing matters such as inventory, payment processing, and other finite details come first.
Everybody gets that. But the social media revolution has flourished along with the pace of the internet in general, creating a remarkable opportunity for merchants to ingratiate themselves with potential customers who are socializing, sharing, and often living much of their lives in online communities. Facebook, especially, increasingly has dominated the average internet user’s time.
With more than 2 billion users, the social media behemoth is such a household name that it transcends family interactions, politics, hobbies, and other areas of life that once were segregated into groups accessed individually. With a single account, a Facebook user may keep up with relatives, recipes, fellow dog-lovers, news, and finally, consumer life.
If your business is not already established with a Facebook page of its own, you’ll need to launch one post-haste. The cost-free exposure to markets and buyers – and even vendors – is invaluable. More to the point, it’s a gargantuan negative to not have a presence on Facebook.
As we celebrate a day of Thanksgiving surrounded by family and friends, Cennos would like to take a moment to say thank you. We're grateful for a wonderful group of co-workers and clients, for the many blessings in our lives, and for continued success.
Wherever you are today, we wish you a very happy and healthy Thanksgiving celebration.
Particles returns next week with a great post exploring Facebook marketing.
When targeting a specific demographic, utilizing keywords is crucial for success in social media marketing. Across all social media platforms, it is becoming increasingly easier to research what your customers are saying and searching for, giving businesses the upper hand when it comes to ensuring that their ads show up in the right place at the right time.
Consistent success in advertising from platform to platform takes understanding the differences of identifying keywords in search and social. Expecting success with the same approach across the entirety of the Internet is not going to work in this day and age. It would be like expecting to franchise an ice cream shop that sells vanilla as its only flavor. The helpful online marketing company Wordstream lays out some common mistakes that they see from companies online.
As the days of November are upon us, ecommerce vendors must be kicking around thoughts of how to make this holiday season their most successful yet. Every year the competition increases; also, every year there are new potential buyers ready to shun full parking lots and complete holiday shopping from the comfort of their desktops.
To ready for what could be a record-breaking year for your business, make sure you have prioritized and planned. That sounds cliché, but get this: While shoppers a decade ago were content to await the “Black Friday” post-Thanksgiving kickoff date to dive in to holiday buying, by 2016 more than 40 percent of all online shoppers began their purchasing before Halloween. This year, that’s expected to increase.