Shopee product prices directly affect conversion rates and profits, so product pricing should neither be too high nor too low. A suitable pricing will also test everyone’s ability. This article will introduce how to price shopee products?
1. Store opening expenses.
There are expenses incurred when opening a store, such as transaction commissions, value-added tax, logistics fees, and accounting processing fees. Sellers need to pay attention to these factors.
2. Profit margin.
If there is not enough profit margin, then the profit will not be much no matter how much the sales volume is. First of all, sellers must have an expected profit for the product and determine the minimum profit of their product. This should be at least 30%, and then add it to the pricing of the product.
3. Refer to competing product prices.
Finally, you can also refer to the prices of competing products on the following platforms. The main thing is to look at the pricing range of the product to prevent your pricing from being too low or too high. However, the specific pricing should still be based on your actual cost. To operate, only in this way can you ensure that the pricing of the product brings you an advantage.
4. Promotion expenses.
Sellers must promote when operating a store. Search advertising and affiliate promotion are two paid promotion methods. Promotion costs a lot, so sellers can also take this part of the price into product pricing.
Sellers should try their best not to engage in price wars with competitors. Don’t see the prices of competing products being low and follow suit, because the cost, logistics, promotion and other expenses of each store are different.
Product pricing formula: product cost + platform commission + domestic logistics fee + international transportation fee (warehousing fee) + expected profit + others.
Relatively speaking, the unit price of consumers in Southeast Asia is relatively low, so sellers should not set the unit price of products too high, otherwise it will have a greater impact on conversions.
The above article introduces how to price shopee products. Of course, you can refer to the pricing formula above. As for how to set the price, you still have to operate it according to your actual situation. Only by considering multiple aspects can the product have a reasonable pricing and bring greater advantages and competitiveness to yourself. It is also more helpful in improving conversions and profits.