Great Ecommerce Experience can be Ruined by Bad Pricing

By Robert Ulrich

In today’s world, business success is all about giving the best customer experiences. And all the companies are in the race to prove themselves best at it. To do these many companies have made a lot of efforts to cater to the needs of new and modern buyers and their changing shopping expectations. Also, B2C and B2B demand a simple and easy shopping experience that includes transparency in the company’s products and services and a faster way to engage with every sales channel they interact with that too with the surety of consistency and satisfy their evolving needs.

What is Dynamic Pricing

Businesses can use a dynamic pricing strategy to set prices for their products or services based on current market conditions, allowing them to react instantly to market changes created by external and internal events. Prices are changed based on changes in cost, supply and demand, and other factors using artificial intelligence (AI) and machine learning techniques.

B2B firms can more readily identify the proposed value of their products in their pricing using dynamic pricing, ensuring that buyers receive actual, market-relevant prices regardless of the sales channel. That’s why, no matter how complicated the selling scenario is, firms that use dynamic pricing are considerably more efficient and successful in their pricing calculations and implementation.

Dynamic pricing allows organizations to be more practical when dealing with market jolts and seasonal changes, as well as match customer expectations through digital channels more efficiently. If eCommerce conversions are declining and inventory levels are rising, dynamic pricing can assist B2B companies to increase sales and revenue in specific channels by adjusting prices to be more competitive while maintaining profits.

Companies can automatically change prices and margins at scale to take advantage of rising market demand for their products and services, maximizing their profitability. Fixing performance issues that cause online retailers to load price information too slowly, leaving shoppers unhappy and sending them to other marketplaces, is another use case. In this case, dynamic pricing might help to solve the performance problem by ensuring quick and accurate price responses in eCommerce channels.

Why Dynamic Pricing is More Critical than Ever for Ecommerce

COVID-19 puts a strain on B2B connections and disrupted supply chains in a variety of businesses. Reduced economic demand in some industries and rising demand in others has created a highly volatile environment that continues to put pressure on pricing as well as businesses’ ability to manage risk and ensure business continuity. These uncertainties, combined with the change to digital channels, created a great need for pricing discipline, better-coordinated efforts across all sales teams, and swift pricing management strategies that might help organizations serve their consumers effectively.

Many firms are unprepared to respond to the needs of successful online selling when consumers shift a portion of their wallet share to digital purchasing channels. Businesses that take advantage of the huge potential presented by e-commerce are able to deliver quicker sales workflows and uniform buying experiences across all channels of distribution.

What Drives Perceptions of Fairness in Pricing

Customer loyalty is based on pricing Fairness. The perception of the value of the offer and the logical comparison with prices posted by other sellers, prices of previous purchases, prices paid by other consumers, and market demand and supply are used by consumers to determine if a price is fair. Price channel conflicts and pricing differences can lead to the perception of unfairness, which has a direct impact on customer satisfaction and loyalty. Consider how a committed customer who is using a new eCommerce platform from a company they regularly engage with feels when they discover irrational prices for things they have consistently purchased from sales professionals. The answer is simple: the buyer will go elsewhere to shop.

How Dynamic Pricing Helps You meet digital selling goals

Businesses can also use digital platforms to generate upselling and cross-selling opportunities. Buyers may be encouraged to use their wallet share across various services and product categories if they receive customized AI-based pricing recommendations. According to the research, 63% of B2B buyers said they buy more from companies that allow them to self-serve their orders. If customers really want to expand their eCommerce website beyond one product catalog only that they should offer constant and market-relevant prices.

In that regard, there are the following ways through which you can reach your digital selling goals:

  1. Dynamic pricing must always be available on your website
  2. Dynamic pricing must be maintained when demand increases during the sales period and holiday shopping season.
  3. Make sure you provide the best customer experience that will allow them to come back to your website to shop again.   

 

 

Interested? RT Labs is a full-service Magento eCommerce platform development firm and our experts can make sure your e-commerce platform serves your business in every way possible.Contact Us today for a FREE Business Analysis session.

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