E-commerce Pricing Strategy

Free Member
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  • Karma:
20 Mar 11 07:51:16 am
Hi Guys

This topic might be gone through time and time again, but I can't seems to search for this relevant topic :p

As I am just starting out on my drop shipping business ( I do keep inventory too) it's kind of impossible to price below my suppliers for the products I used for drop shipping, and by pricing the item on par with the supplier, profit margin is not there

Any advise on how to price strategically?


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  • Karma:
20 Mar 11 08:43:13 pm
Consider bundling products that work well together.

For example, if you are drop shipping mobile phones, consider a package deal that included the phone, maybe the case, hands free kit....you get the idea.

You need to be using the one supplier fro all these products, but what you can do is leave off the margin on all the other products or at least most of them, then make your margin on the phone itself.

The trick is to provide better value for the customer by buying your package, other then they would get by buying the items individually.

You're not losing money by doing this as you are complementing the mobile phone with products at cost (remembering to factor in shipping)

You don't want to ad too much to a package deal as you might start have to price it out of some buyers reach, you just want to find that medium ground where you can offer a unique package at a price point where buyers see true value.

Mark (fudjj)

Community Manager

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  • Karma:
20 Mar 11 09:51:26 pm
Marc's right about bundling products together many sellers do this and some succeed at it too!

You might also consider searching around similar sites or stores so you can check on the prices being offered by others so you can stay competitive.

Here are other posts that have additional tips -

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Hope this helps. All the best!


Customer Support Manager
SaleHoo Group Limited

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  • Karma:
20 Mar 11 11:06:30 pm
Nice one, Mark.

Bundling is huge in e-Commerce. Some of the SaleHoo staff attended a eCommerce retailers conference last year in Sydney and there was a lot of talk about it.

I think it may be because it appeals to buyers who want to get more than one single item when they take the time to purchase something online (even though it's usually a lot faster than buying something from a store!).

I know that I often buy one or more extra items when I purchase things online - especially if the shipping costs don't change much when I add more items.

So there is definitely a psychological element to it!

All the best, would be interesting to see how you go ;)


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