The scary Halloween is coming which is also the most expected period for all e-commerce retailers as this is the starting point (4th largest holiday for e-commerce coming after Black Friday, Cyber Monday, Christmas & New Year) of the highest peak of the sales. Between Halloween and New Year, millions of customers purchase billions buying stuff for friends, family and also themselves.
Roughly, it is expected that 24 percent of online shoppers are planning to spend up to 60 percent of their total holiday budget online during the holiday season. Moreover, according to stats and facts from The Balance, it is also expected to break records for Halloween reaching up to $9.1 billion spendings for 2017.
*These stats are taken from https://www.thebalance.com/halloween-spending-statistics-facts-and-trends-3305716
With seasonal traffic set to reach its highest levels and a spike in e-commerce sales opportunities, this is the best time to be prepared and invest your energy to get advantage from crazy shopping times. So, assuming you’ve already done with your marketing campaigns for Halloween season, we’ve decided to give vital tips to help you how to effectively price your products for Halloween.
Increase your e-commerce sales and boost your revenue with these Halloween pricing tips;
1- Hold your profitability in a good shape while staying competitive
It is a fact that online shoppers are searching for best prices and they are evolving to wild deal hunters during holiday time. But this fact should not force you to be the minimum in the market. If so, you may lose your profitability and can not reach the expected revenues. So, as your ultimate goal is improving your net profit during Halloween, always keep an eye on your costs.
Instead of being the lowest in the market – no matter the cost – e-commerce companies should analyze their costs to achieve unbeatable competitiveness.
If you can not reach the adequate competitiveness in the market because of your costs, try to cut them further up the chain. Only once you figure out a way to lower your own costs, you will be able to offer great discounts or lower prices for customers.
Also, with Prisync’s Dynamic Pricing Module, you’re able to set smart prices by adding your product costs to your products that you track in your Prisync account. After adding your costs to your products, you’ll figure out your smart prices based on your costs, your competitors’ prices and your target profit margins.
2- Don’t undervalue your products harshly, search for price increase opportunities!
Even you target to convert as many online shoppers as possible during Halloween by setting competitive prices, be careful not to be too competitive.
It is obvious that you attract the attention of shoppers by setting low prices and you may be successful at converting them as your paid customers. But, if your customers are deal hunters and always search for the best deals, price your product at the max of the minimums. I mean; search for opportunities where you can price your product until it is almost priced at the second cheapest competitor, yet remains well below that.
I would like to go through with a real example.
Batman costume is expected (again) to be one of the most popular product for Halloween in 2017. At below you can see two different e-commerce retailer selling the same Batman costume. The first one is the most competitive one in terms of price selling it at $39.81. The second retailer sells the same one at $49.95. So, in that scenario, the first e-commerce retailer can raise the price just below its competitor by setting it $48. This move will bring increased profit margins that lift up the balance sheet and still let the product the most competitive one in the market.
3- Analyze your competitors past Halloween price trends
Most of the e-commerce retailers have different pricing decisions during a certain of time and it is also valid for Halloween!
Some of them start setting special prices just before the Halloween week, another portion of retailers use dynamic pricing and set instant prices during Halloween, and some of them target for last minute shoppers or post-holiday shoppers and offer promotions for them.
In order to win this price battle and respond every single move of your competitor to stay competitive, you should be aware of market and price trends at the product level.
Therefore, e-commerce companies should also monitor and analyze the historical pricing trends of their competitors for Halloween while closely tracking actual prices.
4- Try to identify stock-out products of your competitors.
It’s vital to provide the product that your customers want especially during special times like Halloween. Believe me, online shoppers don’t hesitate one moment to make the purchase elsewhere if they are not able to find from you. In other words, from the opportunity perspective, if they can’t find a Batman costume from one of your competitor, you’ll be the next door for them!
Moreover, from another opportunity perspective, if shoppers do not have many choices, they perceive the product more valuable so their willingness to pay more will be higher. That’s the psychology of shopper!
If you detect that one of your competitor’s product is out of stock, the chance of selling it will increase. Moreover, you can set higher prices which will help you to increase the profit margins.
Therefore, the e-commerce company with the competitive advantage and stock availability get the potential advantage in pricing. With the right technology, companies can gain insights on their competitors’ stock availabilities and prices, then implement this strategy, on the spot.
Halloween does not mean sales come just because it’s the season and it is the time for shopping. Online shoppers are really attentive while they are spending their money in the online market as they can do product search and comparison easily. That’s why you need to be ready for the big day and load your arsenal with these tips. Besides of your marketing campaigns prepared specifically for Halloween, use these pricing tips. You’ll see how you can achieve to convert your potential leads to real customers.