Choosing the best pricing strategy for your ecommerce store Choosing the best pricing strategy for your ecommerce store

Pricing strategy is one of the most important aspects of online selling; something every eCommerce seller should adopt.

Getting your prices right will help you secure the sales that you need but also make sure that you meet your margins. But choosing the right strategy can be difficult and requires quite a bit of research, guesswork and experimenting.

This is why we are giving you a short overview of most popular strategies and their focus in this blog post.

1. Market-oriented pricing

Market-oriented pricing is considered to be one of the best strategies for smaller sellers who are only starting their ecommerce adventures.

This approach requires quite a lot of research into your competitors and the overall pricing trends in your selling category.

Once you have an idea of what kind of prices your competitors are selling products for, you can adjust your pricing accordingly to make sure to match or beat them.

This is generally considered to be a safe strategy however sellers should be cautious when selling through bigger marketplaces. Sometimes it might be difficult to match prices offered by bigger retailers, especially when the prices tend to fluctuate (Amazon is the best example here). So if you feel that lowering price to match lowest Amazon price is going to seriously damage your profit, you might be better off selling somewhere else but charging a slightly higher price. You might make less sales but you will not be making loss on every sale.

2. Penetration pricing

Penetration pricing is a strategy companies often use to enter new markets. The initial prices are set to be lower in order to beat any possible competitor and get the attention of shoppers.

This is just an initial strategy that is supposed to drive awareness to the new player on the market. It is risky as the retailers are often making loss on the initial sales. But in longer-term penetration strategy is helping unknown retailers claim share of the market.

It’s usually adopted by bigger retailers who can afford to suffer some initial loss on the products they’re selling. It can be damaging to smaller sellers who might initially gain a bigger market share but will not be able to deal with the money they have lost in the initial phase.

3. Customer-oriented pricing

Customer-oriented pricing is a bit more complex and requires a more in-depth knowledge of the shoppers you are wanting to attract.

Once you have an idea of what segment of the market you want to attract, you have divide your offering into smaller section and adjust each section according to the expectations shoppers in each group have. It often involves carefully constructed offers which will appeal most to your target market.

This strategy works best for medium online sellers that are expanding their inventory who also run their own online store. It requires careful segmentation and market research which can be quite costly. But it is worth it. Personal shopping offers can be up to 6 times more effective than generic sales and offers.

If you’d like to try customer-oriented approach, it might be worth considering selling through marketplaces who provide tailored offers for their shoppers.

Flubit is a good example, being a demand-driven marketplaces creating unique personal offers for their shoppers. If you’d like to learn more, you can access more information here.

Which strategy is best for you?

Choosing the best pricing strategy should always be based on extensive research and calculations. Analytics are very important to monitor if the chosen strategy is working for you. If not and your sales are low or your margins are affected, it might be the best idea to examine the cause and try a different approach.


Flubit is a unique marketplace that allows online shoppers to demand better offers on products they actually want to buy. With easy set up and no fees Flubit gives online retailers a chance to win incremental sales they would otherwise miss out on.

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