Pricing strategy
After clarifying the product positioning of their own store, the market demand and supply, and the prices of competitors, sellers need more data analysis to formulate prices that suit buyers’ wishes in order to maximize sales of goods
Use data analysis to price
As we all know, Sam Walton, the founder of the retail giant Walmart, has a very valuable price theory; a product with a purchase price of 80 cents is sold at $1, and the sales volume is three times that of a product sold at $1.2. Although the profit of a single product is reduced, the actual total profit is increased. This shows that in the process of commodity sales, a small difference in commodity pricing can have a great impact on the final sales effect.
In order to accurately position the price of a commodity, it is also necessary to refer to the prices of similar competing commodities. In AliExpress, there is no tool like Shengejing that can obtain data for analysis, but sellers can obtain the required data from the homepage of AliExpress for analysis. Let’s take the “dress” product as an example.
Check the price range of keywords, get the percentage of buyers who like this price range, and use Excel worksheet to generate a “3D pie chart”.
In the 3D chart, it can be found that the sales volume is the largest when the price of “dress” is in the range of 5.99 US dollars to 13.76 yuan. This range is divided into two intervals. When the seller’s business competitiveness is strong, that is, it can guarantee sales, then it is natural to choose a higher price, that is, 10.18 US dollars to 13.76 US dollars: If the seller’s competitiveness is not enough, then you can choose a price with a larger sales volume, that is, the price range of 5.99 US dollars to 10.18 US dollars.