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WooCommerce Dynamic Pricing – A Weird Way to Optimize Conversion Rates

May 20th, 2021 Comments off

Introduction to Dynamic Pricing

If you want your business to scale, you need to stay with the times. Nowadays, consumers are highly aware of the market and do their research on a brand before making a purchase. Thus, it’s important to be aware of the current online retailer trends to stay on top. One such common trend in today’s e-commerce competitive marketplace is dynamic pricing. Strategically adjusting the price of your product to match the current demands is a sure way to gain customers’ attention and make them choose you for their business.

So how does it work? Dynamic pricing curates prices for products by gathering large amounts of data regarding customer demand, competitors, and market conditions. So the prices are always changing depending on the market and time. This is especially beneficial for businesses related to traveling, e-commerce, transportation, etc.

But is it beneficial for consumers? Are there any disadvantages associated with it? And how to implement it? We are going to answer this and much more ahead, so keep on reading.

Dynamic Pricing Strategies

Dynamic pricing is available in multiple forms which you can implement depending on your business and product type:

1.    Time-Based Pricing

In the time-based pricing strategy, businesses can increase or lower the price of products based on their inventory available in their store or warehouse, date of release, and competitor price. Businesses can also use specific hours of a day to increase their sales, such as “happy hours” in a bar or offer same-day delivery with slightly higher prices.  

2.    Market-Based Pricing

Fluctuation in the market is a common thing and recent times have made us more aware of this than ever. Businesses would need to lower their prices if the demand decreases and increase the prices when demand is high.

3.    Segmented Pricing

Segmented pricing refers to setting different prices for the same product. This is done by segmenting the buyer into categories, such as prices that could be higher or lower based on location, delivery time, membership, high-value customers, and much more. You can also set prices for the services provided, such as faster delivery and quality. Through segmented pricing, everyone can afford your product on their terms.

4.    Penetration Pricing

Penetration pricing is perfect for new businesses who want to get noticed immediately. This strategy involves initially pricing the products and services at prices lower than those provided by the competitors. This results in increased visibility which helps startups gain the traffic they desire.

5.    Peak Pricing

Peak pricing is implemented when the demand is high and the competition is low. It is mostly employed during peak hours or seasonal sales where the products are priced dynamically to result in more sales. For example, during the holiday season, travelers buying airplane tickets normally see much higher prices than in non-seasonal time. 

There are many dynamic pricing plugins available that can set up different pricing strategies and analyze results to see which works best for your business.

Advantages and Disadvantages of Dynamic Pricing

Dynamic pricing can easily go sideways if not implemented property and thus along with advantages, it has few disadvantages as well. Let’s see if the pros outweigh the cons in this matter.

Advantages

1.     Increased Profit

By implementing dynamic pricing on your online store, you can benefit from increased sales and revenue. How? Because the machine collecting data to create a specific algorithm for your business makes sure your pricing is right. For example, if your competitor is selling the product for $3 and you sell them for $1. The dynamic pricing strategy will price your product at $2, which will be profitable for your business and also improve customer satisfaction as they believe they are getting a better deal from you.

2.     Knowing Your Competitors

Perfectly implementing a dynamic pricing strategy requires you to know your competitors. It is important to know what your successors have been doing. What are their prices? How do they price their products? When and how do they lower or increase prices? And much more. Once you have a clear view of your competitors, you can improve and implement these strategies seamlessly in your store.

3.     Customer Insight

The better you know your customers, the easier it will be to sell to them. Dynamic pricing provides you insight into your customer behavior, their shopping hours, their willingness to pay a price, their interests, and their demands. This helps you provide an optimum shopping experience to your customers and result in increased sales.

Disadvantages

1.     Increase in Competition

Dynamic pricing can easily get out of hand and start a price war. Now, what’s a price war? If a single business lowers its price to gain customers, similarly another business does the same and soon all other competitors follow which leads to incredibly reduced prices which are gaining no profit for the businesses.

2.     Distrust in Customers

These price wars lead to distrust in customers as well. How? If your loyal customers find out that someone else got the same product at half the price from another vendor, they will feel cheated. And no matter how loyal a customer is, a further reduced price is sure to get them converted to another business. 

To avoid these errors, make sure to have a perfect dynamic strategy in place and stay true to it because overdoing dynamic pricing could result in loss.

How to Implement Dynamic Pricing on your WooCommerce Store

There are many ways you can implement and integrate dynamic pricing into your online store. Setting up dynamic pricing cannot be done overnight. It is a long and laborious process of easing into the market, getting the customers, and increasing profit keeping the demand in view. Below we have mentioned a few strategies that you can implement on your site to properly enable dynamic pricing.

1.    Initial Pricing

As mentioned above, this pricing strategy is employed by new business owners, who introduce products at prices that are considerably lesser than the competitor. How? Because they take little profit at the beginning to gain customers and then once a strong client list has been established, the prices are gradually increased.

2.    Introduce Bundle Pricing

Another effective way to introduce dynamic pricing is by creating bundles. This is great for businesses that deal with clothes, food, sports equipment, etc. For example, an online store that deals with computers and their accessories, can bundle up a complete computer system and sell it for a slightly discounted price. This would help in increasing sales as your customers think they are getting a good offer and also increase the average order value. 

3.    Offer Discounts and Coupons

We all know customers love a good deal. Coupons and discounts are great for attracting the audience’s attention, but too much use of this dynamic pricing strategy could result in less profit, the difficulty of increasing the prices later on, and also makes your product seem cheap. Thus, it is recommended to occasionally and strategically place discounts depending on the need.

Final Thoughts on Dynamic Pricing

Dynamic pricing can be an ideal solution for the competitive e-commerce market, but it can also create customer mistrust in your brand  if misused. Thus, it is important to devise a proper strategy and work accordingly. Overdoing anything will have its consequences, such as running year-long discounts will give your customers the impression that your products are cheap or they won’t purchase when you increase the price. It is a continuous ongoing process and you need to improve and implement it on the way based on the supply and demand.

Stamps.com Connects Directly to WooCommerce!

Stamps.com’s direct integration with WooCommerce allows online retailers to easily import, manage, and ship your e-commerce orders. Benefits include:

  • Import order data directly into Stamps.com from WooCommerce
  • Print USPS and UPS shipping labels in one step
  • Automatically post back order and tracking info to your store

Make your WooCommerce shipping easier today by connecting your store to Stamps.com!

Author’s Bio

Xaviera Khalid is the content writer at WooKeeper.com. She is an avid reader and uses her creativity to write interesting articles about WooCommerce and its related topics. She focuses on SEO-optimized content and provides factual writing.

Categories: Ecommerce Shipping Tags:

Maximizing Profits on eBay: Four Hot Products to Sell Now!

May 7th, 2021 Comments off

Even though I am an eBay seller and educator with 16 years’ experience and 20,000 + feedback, I am constantly trying to think of ways to work smarter, not harder.  Last January, right before COVID hit, I decided to downsize and streamline my eBay business.  Instead of running it out of a warehouse, I moved it back to my house.  When social distancing became the norm, I started doing all of the listing myself instead of paying someone to list.  Because of all of these changes, I became laser focused on low-cost products that are easy to source, easy to store, and easy to ship.  As a result, I sell less but make more! 

The following four items are among the type of products I now sell on a regular basis.  If you don’t have much space, and you want to maximize profits in 2021, don’t miss out on these easy-to-source products:  

#1 Women’s bras and lightweight tops:  Both of these products meet the aforementioned criteria.  Heavily padded bras in all sizes from brands such as Victoria’s Secret are always hot sellers.  Be sure to mention style names in the titles of the listings you create.  Lightweight tops (especially camisole-type tank tops) from companies such as White House Black Market are also popular.  Bras and tops are easy to find at yard sales where they often hide in large piles of clothing and can be purchased for next to nothing.  In general, try to focus on those items that are light enough to be sent via First Class Package Service (under 1 lb.).

#2 Swimsuits:  Name brand swimsuits for men and women are also fun to sell.  Swimsuits are easy to store, and they don’t weigh much.  Focus on new or almost new name brand suits that are photogenic. As far as sizes go, the bigger the better.  A few years ago, I purchased 90 name brand swimsuits at an end-of-the-summer sale at a local thrift shop.  During COVID, there were no yard sales, and shopping at thrift shops was not an option.  That’s when I pulled out the bags full of swimsuits I had purchased!      

#3 Lego Minifigures: Legos can be sold by the pound, but did you know that Lego minifigures can be sold individually for a nice profit?  Minifigures (or minifigs) are small, lightweight figurines produced by the Lego company.  Both children and adults collect minifigs, and they are sold individually or as parts of sets.  Some are produced to fit a certain theme while others are specific characters from film, television, or game franchises.  We often purchase large lots of Legos and sift through them looking for minifigs.

#4 Vintage ashtrays and plates: I love listing vintage ashtrays and plates from bars, restaurants, and hotels, especially if the establishments no longer exist.  I recently sold a set of four small vintage dessert plates from a hotel for $60.  These treasures are relatively easy to find at estate sales and can be listed in just a few minutes from just about anywhere. 

eBay Seller Tip!  Remember, you make your money when you buy!  So when you’re out and about sourcing for your online business, don’t miss out on these small, lightweight, easy-to-source items that will help you maximize profits in 2021!

About the Author
Miriam Otto is an e-commerce blogger and credentialed teacher with 16 years’ experience selling on eBay.  She was a frequent guest on eBay Radio and has participated in eBay seller panels and projects.

Categories: Ebay Shipping Tags:

USPS To Change Priority Mail Express Delivery Times

April 30th, 2021 Comments off

The U.S. Postal Service is proposing a delivery time change for Priority Mail Express.

Currently, Priority Mail Express has two guaranteed delivery times within the 1-2 business-day service standards:
Option #1: 12 Noon or 3 p.m. (depending on originating zip code and delivery address)
Option #2: 10:30 a.m. (in select locations, for an extra $5 fee)

The USPS is proposing to eliminate the 10:30 am delivery time and will be adjusting the regular Priority Mail Express delivery from 12 noon/3 p.m. to 6 p.m. on the designated delivery day.

If the Postal Regulatory Commission approves the change, starting Sunday, May 23, 2021 all Priority Mail Express packages will be delivered by 6 p.m. regardless of the originating zip code and delivery address.

The shipping price for Priority Mail Express will not change with this delivery time adjustment.

Get more information on Priority Mail Express.

Categories: USPS News Tags:

New GlobalPost Processing Hub Opens in Houston, Texas

April 21st, 2021 Comments off

GlobalPost International Shipping Services

GlobalPost, the industry leader in affordable, innovative international shipping services, today announced the addition of a new processing hub near Houston, Texas. Warehouses, fulfillment centers and online retailers in the Houston metropolitan area will now qualify for consolidation discounts and free package pickups for shippers doing a minimum of 30 shipments per day. GlobalPost customers typically save at least 30% on shipping rates by consolidating their international parcels. They also benefit from exclusive features such as electronic customs forms and free coverage against loss or damage on every shipment.

GlobalPost is available in the most popular shipping software applications including Stamps.com.

About GlobalPost
The GlobalPost delivery network leverages partnerships with international postal operators as well as commercial carriers to offer worldwide delivery. GlobalPost services reach over 200 countries and territories and includes unique features not found in traditional international shipping service.

Categories: International Shipping Tags:

USPS Mailing Standards For Lithium Batteries

March 12th, 2021 Comments off

This article includes updates effective March 12, 2021

Shipping Regulations
When shipping lithium batteries, businesses must comply with U.S. Department of Transportation (DOT) standards and Pipeline and Hazardous Materials Safety Administration (PHMSA) standards for preparing shipments that contain lithium batteries.  The standards are in place to ensure the safe transportation of shipments that include these batteries and cells.  Shippers are responsible to comply with these regulations or risk fines.

Luckily the USPS shipping regulations align with DOT and PHMSA regulations—so as long as your shipment follows USPS regulations, you are in the clear.

USPS Standards for Domestic Shipments Containing Lithium Batteries

  • Each cell cannot contain more than 1 gram of lithium
  • Each battery cannot contain more than 2 grams of lithium
  • All packages must contain a complete return address
  • For non-installed batteries, your package must have a DOT-approved lithium battery mark (UN3090)

Standards for Shipping Installed Batteries

  • Installed batteries must be protected from short circuit
  • Devices with batteries must have protection to prevent accidentally being powered-on
  • Equipment must be cushioned

Shipping Lithium Batteries to International Destinations?

Lithium batteries can only be shipped internationally if they are installed in the equipment they operate.  Shipping carriers are not allowed to ship packages containing only lithium batteries or cells to international locations – they must be included inside a product.  No markings or documentation are allowed on these international mailpieces.  This rule applies to all international as well as APO/FPO/DPO destinations.

More info on the U.S. Postal Service’s Lithium Battery mailing standards is available on the USPS.com site.

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