Detailed explanation of pricing strategies and techniques for cross-border e-commerce products

1. Diversion money pricing strategy

In order to attract traffic, cross-border e-commerce sellers usually set up some traffic-draining products, and the pricing of these products is usually close to the cost price. Drainage products can attract consumers into the store, thereby promoting sales of other products.

2. Profit pricing strategy

Profit products refer to products that are normally sold in stores. The pricing of such products is usually higher than that of traffic-generating products, aiming to ensure that merchants can obtain reasonable profits.

3. Pricing strategies for through train models, off-site promotion models, and affiliate marketing models

When setting the price of such products, sellers need to take into account promotion costs to ensure that they do not lose too much profit due to promotion.

4. Pricing strategy for event items

Products participating in platform activities usually require larger discounts, so the cost and the extent of the activity discount must be taken into consideration when pricing.

5. Cost-based pricing strategy

This is one of the most common pricing methods, and its advantage is that it is simple and easy to operate. The calculation formula is: cost + expected profit = price. For example, for a T-shirt that costs $11.50, plus $3 for shipping, if you want to earn $10.50 per item, the selling price should be $25.

6. Pricing strategy based on competitors

This strategy requires sellers to pay close attention to their competitors’ prices and adjust their own prices accordingly. But it should be noted that if you just blindly follow competitors to cut prices, you may fall into a price war.

7. Pricing strategy based on product value

Set prices based on the customer’s perceived value of the product, an approach that requires a deep understanding of the target market and customer needs.

8. Value for Money Pricing

Set prices based on consumers’ perceived value of the product, ensuring that the price matches the customer’s perceived value.

9. Value-added pricing method

Differentiated pricing by adding value to your product or service.

10. Cost-plus pricing method

The selling price is determined by adding a certain profit margin to the product cost.

11. Competitive Pricing

Determine the price of your own products based on competitors’ strategies, prices, costs, and market supply and demand.

12. Product mix pricing method

Adopt a 2:7:1 product mix pricing strategy, that is, 20% of the products are priced at low prices to attract traffic, 70% of the products are priced with reference to the industry average, and 10% of the products are priced at high prices.

13. Psychological pricing method

Use consumers’ psychological perception of price to set prices, such as mantissa pricing, integer pricing, etc.

14. Open high and go low pricing method

Set a higher price first, and then gradually adjust it based on market feedback.

15. Cost issues involved in opening AliExpress

Including purchase price, domestic freight, international freight, customs declaration fees, profits, platform fees, marketing activity discounts, through trains, alliances and brush orders, etc.

16. Pricing formula example

A piece of clothing weighing 0.5 kg has a purchase price of 40 yuan, a freight unit price of 96 yuan/kg, a discount of 0.88, a customs declaration fee of 8 yuan, an exchange rate of 6.2, a profit margin of 20%, a platform rate of 5%, and an event discount of 30 %, and its price is $25.68.

17. Pricing techniques for selling the same product based on different e-commerce platforms

Determine your own pricing strategy by comparing the prices of the same products on different cross-border e-commerce platforms.

18. Pricing techniques based on different characteristics of market buyers

Adopt different pricing strategies for different types of buyers (such as wholesalers and individual consumers).

19. Pricing techniques based on different business objectives of the seller’s enterprise

Develop corresponding pricing strategies based on the company’s business objectives (such as rapid user acquisition or differentiated operations).

20. Pricing techniques based on the degree of discount in logistics costs

Set logistics costs reasonably, especially for products with low unit value, you can set free shipping to attract more customers.

21. Tips for rational use of pricing ranges

Use techniques such as same-price selling, price segmentation, non-integer and arc number methods to optimize pricing.

22. Skimming pricing strategy

New products are priced higher at the beginning of their launch to maximize profits quickly. It is suitable for situations where the market demand for new products is less elastic and exclusive production technology exists.

23. Penetration pricing strategy

Quickly capture the market with low prices, and then gradually increase prices. It is suitable for enterprises with strong production capacity and whose costs decrease as sales increase.

24. Psychological pricing strategy

Use consumer psychology for pricing, such as mantissa pricing, integer pricing, prestige pricing, etc.

Conclusion

To sum up, cross-border e-commerce companies should comprehensively consider multiple factors such as cost, market demand, competitor status, and consumer psychology when setting product prices, and flexibly use various pricing strategies to achieve optimal benefits. .

Please note that the above content is fully integrated from the reference article provided and no personal opinions or conclusions have been added.