During the process of listing a product or communicating with customers, a product often needs a certain price.
(1) The target market must be clearly defined.
(2) Costs must be calculated. In the pricing process of many cross-border e-commerce companies, for ease of operation, only variable costs are generally calculated. The product costs of production companies can be roughly determined based on their parameter configuration. In trading companies, product costs generally refer to the purchase costs of products.
Another factor that needs to be determined here is the product transportation cost, which is generally directly related to the weight of the goods and the transportation method used. In RTS product pricing, some products are set with free shipping. In this case, the logistics price needs to be added to the product transportation cost. In addition, cost factors that should also be paid attention to include profit margins, category commissions, exchange rates and other influencing factors.
(3) The target profit margin must be predefined. The profit margin should be calculated based on industry experience or competitor pricing. After determining the above factors, we can derive the general standard price comprehensive pricing formula:
Pricing = (product cost + product transportation cost) x (1 + profit margin) pricing / (1-platform commission ratio) x exchange rate x (1-discount)
Based on the pricing formula, we can further calculate the pricing of a certain product in various situations, and combine it with the simple pricing method to derive pricing in various scenarios, such as sample package free shipping price and discount price.