Tag: pricing (Page 1 of 2)

How Much Power Do Consumers Have Over Your Business?

Every company claims to be “Customer-centric”, and claims to make customer satisfaction their priority. Of course, everyone wants to keep their customers happy and maintain a good relationship with them. And in these brands-customers relationships, companies would rather see the power balance shifting towards them. It is easier said than done, even in the case of multi billion dollar businesses: customers as a whole sometimes have a lot of power over these massive companies. Some of us may remember Peloton, which was a massive success during Covid but faced customer backslash when they increased their prices and when alternatives became available again once the pandemic improved. 

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Forget Gen Z: Why Boomers are Obsessed with Shopping on Temu

When I first heard about Temu, my knee-jerk reaction was to think it would be a Shein for random items, from kitchenware to toys. I also thought the target audience would be similar, Gen Z, especially after I saw some young influencers showing off their “Temu hauls” on TikTok. 

Recent reports proved me wrong: Boomers placed on average 5.6 orders last year on Temu, while Gen Z only ordered 2.6 times.

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Anecdotal Data on Amazon Pricing and Market Saturation

Below is one of my recent LinkedIn Post. I wanted to also share it here on my blog, as I think the data I collected and charts I built can be insightful to those of you selling on Amazon.

Is Amazon saturated? I don’t have the answer, but I do have some interesting anecdotal data (and some good news if you’re in the market for a massage gun).

I looked at a random product, massage guns. First, the evolution of the sale price for the current top 5 massage guns on Amazon. Most launched in 2020 (the first few months of data isn’t always available).

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Amazon Lowering Their Fees!* (*Only Applies When Competing With Shein)

Did you know that consumers throw away an estimated 60% of clothes within a year of purchase? This is shocking to me, as I still own a T-shirt or two from my high school years. The fashion industry is responsible for about 10% of global carbon emissions, more than international flights and maritime shipping combined. Companies mass-producing a continuous flow of new, cheap designs like Shein have a disastrous impact on the environment. Some experts also claim that fast fashion has a negative impact on customers’ mental health, leading to feelings of inadequacy if they don’t regularly purchase new items, to impulsive buying decisions, followed by regret and guilt. We have all bought something online and regretted it weeks later, but the fast fashion industry takes it to the next level.

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Prime Big Deal Days Success and a Seller’s Dilemma

Everyone has a few products they love, but only buy when they are on sale. Whether it’s electronics, luxury fashion, or even our favorite candies, sometimes we just refuse to pay full price, but are quick to pull out our credit card when we see a good deal online. For me, this product is Liquid IV. I feel like it really helps me not be dehydrated after a long flight. I wasn’t surprised when I heard that Liquid IV products were among the top sellers during the successful Prime Big Deal Days event on October 10-11.

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Choice Hotel International’s Drip Pricing Controversy: The Strategy We All Love to Hate

Don’t we all hate it when we see a hotel room, plane ticket, or concert ticket at an attractive price, only to be hit with a million extra fees during checkout? Convenience fees, payment processing fees, because-we-can fees, and various fuck-you fees makes a miserable shopping for customers. That delicious $12 burger you found on the food delivery app? $40 after various fees, delivery, and tip. And what’s this? An “e-ticket delivery fee”? Receiving your football game tickets via email now comes with a price tag. 

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Navigating the Holidays Ecommerce Showdown of Walmart and Amazon

Chances are, you’ve heard about Amazon’s Big Deal Days, that magical event that makes our wallets lighter. But do you know about Walmart’s Holiday Kickoff sale? Planned from October 9th to 12th, this event will overlap with Amazon’s own sale on October 10th and 11th. Walmart has big plans to increase its ecommerce presence and also said it generated over $80 billion from ecommerce in 2022, which is a 9% growth. That is better than Amazon’s overall ecommerce revenue growth of less than 6%.

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Good-Better-Best Pricing Strategies

Perhaps not everyone is familiar with the Good-Better-Best approach in business, but we have all experienced it as customers, no matter where we shop. Booking a plane ticket? You’ll have to choose between Economy, Economy-Premium, or Business. Pumping gas? Your options are Regular, Midgrade, or Premium. It is an easy concept to understand, and many businesses across various industries are using this approach, while others are still not offering tiered pricing. The G-B-B strategy has many advantages, and if done right, can bring a lot of extra revenues. 

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Pricing Strategies for the Ecommerce Entrepreneur

Whether you have experience in online sales or not, you probably know that pricing is often one of the most important criteria for the customer. Of course, we all like a good deal, but pricing also affects our perception of a product. We previously talked about low-cost pricing and premium pricing strategies. But pricing is more complex than that, and getting the price right is one of the most important things in maximizing sales and profits. Different businesses have different products, customers, and competitive environments, so they need the best strategy for their business. Let’s talk about the seven main pricing strategies that apply to Ecommerce and online sales. 

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Free Shipping : Necessity or Margin Killer?

If you shop online, I’m sure you’ve been there: you find an item you really like at a decent price, you add it to your cart, begin checking out, and find out that shipping will add an extra $7 to your bill. What an awful surprise. The idea of paying for shipping greatly upsets you, and you give up on your purchase. Does this sound familiar? I’ve certainly done that many times. In the age of Amazon Prime, should other online businesses offer free shipping? Is charging for shipping a thing of the past?

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