Online shopping is one of the most popular online activities worldwide. According to the Statistics Portal in 2017, global retail eCommerce sales grew 24.8% compared to the previous year. Customers can choose between an enormous variety of products, quality and prices. In addition, they can consult dozens of comments and reviews from past buyers to support their decision.
Everyone who is engaged in B2B eCommerce knows competition is intense. Any company competing must know the best strategies to convert and retain clients. Companies need to offer a unique and personalised experience to impress the customer. Software technology can be used to remain competitive on pricing and at the same time ensure profitability.
We discuss some helpful Trade Revenue Management tips that every business in the eCommerce space must be aware of in order to be competitive.
1. Use a Mix and Match discount strategy
Instead of competing head to head on a single item, use a Mix and Match discount strategy. This is where a company offers customers a considerable discount when they purchase a specific combination of products. It can enhance customer loyalty and motivate customers to purchase additional items to qualify for a price discount.
The company can change what kind of products and discounts that will be included in Mix and Match discounts and combine items by different attributes, products, product groups, and apply discounts based on quantity, weight, or volume.
As an example, you can define a Mix and Match price where a customer purchases 12 bottles of red wine combined with 12 bottles of rosé wine, to get 15 percent off the total price.
2. Change your prices instantly
The online market is very dynamic and competitive and this adds an extra layer of pressure. E-Commerce business are changing their prices all the time and require a fast and agile system to be able to keep up with regular price changes. Having the ability to make instant changes is essential for survival in the eCommerce race to winning a new customer.
A Performance Pricing system can deliver up to 2,000 price lines per second to any point of sale, allowing your business to keep the fast pace to manage real-time calculated pricing ensuring you are offering the best price.
3. Manage your Promotions Pricing
Using technology can help your business to streamline pricing administration that will consequently affect your promotion decision process. For an eCommerce business, managing promotions efficiently is the core process that will ensure business success or failure.
When it comes to promotions, a software solution can enable more creative combinations of promotional pricing and tactics to drive sales that will result in profit. Repricing shopping baskets based on order volume will render the new prices immediately should there be a volume discount. Calculating prices in real time seems so much easier than looking up millions of lines of pricing in a spreadsheet, doesn’t it?
As reported by the PipeCandy Blog, there are between 2 and 3 million eCommerce companies in the world (excluding China). In order to succeed, companies must develop a solid pricing strategy and execute it with consistency and accuracy that only Trade Revenue Management technology can provide.
When a company combines these two elements they have the formula to succeed, regardless of who the competitor is. A remarkable brand and product experience, as well as competitive pricing promotions, will increase your attractiveness. You will be better prepared to compete against the biggest eCommerce business and experience considerable sales growth to expand your business.