First, let’s learn some knowledge about the average order value. The average order value refers to the total amount of money a customer pays in a purchase. The average order value of a store can be calculated by dividing the store’s sales by the number of customers.
Five factors determine the average order value of Lazada:
Factor 1: The breadth and depth of store inventory: The breadth and depth of store categories have the greatest impact on the average order value. The average order value of hypermarkets is usually higher than that of supermarkets and convenience stores.
Factor 2: Brand product positioning: The brand’s product positioning is an important factor. Correct brand product positioning can increase the average order value.
Factor 3: Brand promotion activities: Promotional activities can stimulate customers to buy additional products, thereby increasing the average order value.
Factor 4: Product association combination: The appropriate product association combination can guide customers to make impulse purchases, thereby increasing the average order value.
Factor 5: Product display: Reasonable product display can attract customers’ attention, increase their likelihood of purchase, and have a certain effect on the average order value.
Some products can bring lucrative profits, but not everyone has the ability to operate or utilize them. This may be due to the complexity of the product, the requirement of professional knowledge, or the limitations of market conditions. Similarly, the average customer unit price of Lazada is not the customer unit price that all sellers can achieve high profits.
In the Southeast Asian market, the average customer unit price is relatively low, and consumer purchasing decisions are mainly affected by product prices. Although Lazada focuses on the low and mid-end markets and hopes to promote sellers to standardize and specialize, low prices are still an important consideration for customers’ purchasing decisions. Therefore, the customer unit price of Lazada is closely related to customers.
When pricing products, in addition to calculating the basic costs, it is also necessary to consider the competitive advantages of product prices. The following are two aspects to consider:
1. Reference to competing products and market prices: Understanding the pricing of competing products is the basis for setting reasonable pricing and obtaining advantageous pricing. By comparing the prices of similar products, you can determine the price range of the product and find low-priced, high-quality sources to gain a competitive advantage.
2. Find substitutes: There may be many products with similar functions, strong substitutability and low prices on the market. In the pricing process, it is necessary to grasp the price range of the product and compete for competitors’ traffic and orders with price advantages by finding substitutes.
3. Reserve a certain discount space. This includes considering the price reduction ratio of the strike-through price and the selling price, as well as the price reduction ratio of the selling price and the promotional price when pricing. For example, for a product with a strike-through price of 99 yuan and a promotional price of 39 yuan, by displaying the price form of “99-60=39”, the price reduction effect can be enhanced and consumers’ desire to buy can be attracted. However, price reduction will also affect product profits. Therefore, when pricing, it is necessary to consider the price reduction space of the product in advance to ensure that a large discount margin can be achieved under the premise of controlling costs, and whether it is daily promotions or holiday promotions, the price advantage of the product can be demonstrated.
In short, there is a certain relationship between the average customer price of Lazada and the pricing of the seller’s store. Although the average customer price in the Southeast Asian market is not high today, as long as reasonable pricing is used, the price is competitive in the market, and more consumers are tempted to buy, the average customer price will slowly increase.