What drives shoppers to purchase a product? Is it branding, quality of the product, the design or price? According to research, 60% of online shoppers worldwide consider e-commerce pricing as their very first criteria affecting their buying decision. This goes upward 15-20 percent in difficult economic situations.
You and I know how obvious this is but most decision makers still don’t understand how important it is to survive in tough times. Especially for online retailers’, the pricing process is one of the most complex and hectic parts of the business. Lots of meetings get held, internal costs and pricing is checked, and competitor moves are given
So, everything is in the shoulder of pricing analysts. They track competitors’ pricing changes and analyze how their own prices are performing every day. The data is there, competitors are hustling 24/7, and shoppers are lingering here and there waiting to make a decision. You have 1-3 seconds to win or lose a customer.
Do people in your management, accounting, marketing or sales teams know this? If not, it is up to you to save the day and align your whole team into a more focused route and help everybody understand how pricing matters for shoppers in the harsh e-commerce arena.
More stats for the curious…
- %20 of the E-Commerce traffic for all sorts of product categories come from price comparison engines.
- %73 of online stores named price changes as the main factor of the competitive pressure.
- Retail giants change their prices every 3 minutes on average.
- 54% of shoppers will purchase products left in shopping carts if those products are offered at a lower price. (Must be careful with this strategy though 🙂
- 46% of online shoppers appreciate e-commerce stores that recreate product comparisons including prices.
- 41% of online shoppers look for discount coupons while %23 of them participate in these promotions.
- 60% of online female shoppers prefer investing time to find the best deals, which is much more than 46% of males.
- %67 of US online shoppers say they will buy from different e-commerce websites to get the best deals.
- An average online shopper visits at least 3 websites before making their purchase.
- 62% of the shoppers of big marketplaces invest their time to hunt best deals. At average online sites that stat is 46%.
- Top 3 Most Influential Factors for US Shoppers while Buying Online – 87% Price / 80% Shipping Cost / 71% Discounts
Daily Price Change Ratio
French retailers are quite active if we are talking about daily price changes. %5.92 of prices from France are changing every day which is higher than the other 6 countries’ average that is measured to be around 3 percent.
Stock-Out Ratio of Online Products
All of the countries showed in the graph are below the global average of the global average stock-out ratio (15 percent). As you can see in the graph Canada showed a great performance with 4.5 percent.
The Ratio of Prices ending with .9
This is a fancy data for every e-commerce specialist. %33.31 of Canadian prices end with .9 such as $4.99 or $7.59. This data shows us Canadian retailers are keen on using the power of 9 while attracting online shoppers.
As you can see from these stats, pricing is quite significant at any e-commerce businesses way to success. Thanks to technology, tracking competitors’ prices and making smart pricing decisions is easier than ever. For surviving at the wild world of e-commerce we must consider pricing and the strategies we plan in a very delicate fashion.
What is your opinion about the importance of pricing? Leave a comment below.