Although Lazada focuses on the low-end and mid-end markets and guides sellers to approach standardization and specialization, it is undeniable that the average customer unit price in the Southeast Asian market is not high, and product price is still the main factor affecting customer purchase decisions. This requires merchants to adapt to the market. In addition to the correct product selection, it is also necessary to set reasonable product pricing. Otherwise, it will not only be difficult to compete with preconceived sellers, but will soon be eliminated by the market. This article emphasizes that in addition to considering various basic costs, Lazada merchants should also consider two product price competitive advantages:
1. Reference to competing products and market prices
In the stage where there is no sales and comments, if a new product wants to be quickly ordered, it may take at least 30 days to naturally order.
For products without reviews, customers are very worried about the quality of the products, and it is difficult to form a transformation without a trust foundation.
Therefore, when launching new products, we must first have enough price advantages to have the opportunity to obtain the platform’s traffic tilt, get attention among a large number of competing products, and let customers complete orders at ultra-low prices in a short time.
Therefore, referring to the prices of competing products of peers is the basis for setting reasonable pricing and advantageous pricing. Not only the competition on the same platform, but also the comparison and analysis between different platforms is needed.
After statistically analyzing the average market price of the product, the merchant should understand the cost price, and then search for low-price and high-quality supply through the entire network channel in order to gain advantages in supply channels and prices.
In the market, there are many products with similar functions, strong substitutability and low prices. What merchants need to do is to grasp the price range of the product, and then compete for the traffic and orders of competing products with price advantages by finding substitutes.
2. Reserve enough discount space
The discount space includes the price reduction ratio of the strike-through price and the selling price, and also the price reduction ratio of the selling price and the promotional price.
In many products, when we see a product with a marked price of 99 yuan and a promotional price of 39 yuan, we will immediately feel very cost-effective, even if it is a product that is not needed temporarily, we can’t help watching it. This is also a common promotion method used by some sellers: displaying the product price in the form of “99-60=39” on the promotion page or main picture. This intuitive subtraction expression can improve the intensity and effect of “price reduction” to a certain extent.
Almost everyone can’t resist the temptation of a big price cut on a product, and promotional activities also cater to consumers’ enthusiasm for price cuts, bringing more order conversions to sellers.
The price cut of a product will inevitably affect the profit of the product. Therefore, when setting a price, you should consider the price reduction space of the product in advance. For example, if the cost price of a product is 100 and the price is 199, the maximum price reduction rate can reach 99, and the discount rate is nearly 50%. Whether it is daily promotions or holiday promotions, it can achieve the effect of big profits while controlling costs, reflecting the price advantage of the product. For customers who like low prices, it is necessary to increase the publicity effect of “super big price cuts”.
The above content is about two important factors that Lazada merchants need to consider when considering competitive advantages. Compare competing products externally and prices internally, and then highlight the price advantage with the help of product and promotion information optimization, cooperate with advertising to increase product exposure, and merchants will have unexpected gains.