How to prevent against the price war in e-commerce?

 

In the early 2000s, e-commerce in Brazil experienced an astronomical expansion: several people saw the new business modality as the new “Eldorado”. And it was thanks to the exponential growth of online retailing, which for a long time sustained relatively fast ROI promises, that many Brazilian entrepreneurs decided to bet on the great moment of virtual stores as a shortcut to success.

In this way, thousands of e-commerces emerged, fueling competition at predatory levels and forcing shopkeepers to face an uncomfortable price war, which occurred in the offer of free shipping, discounts and more “comrades” installments, for example. There were cases, even, of virtual stores that offered a comparison of prices of its competitors, to prove the status of “barateiro”.

This price war is very interesting from the point of view of the average consumer. After all, who does not like to pay cheaper? However, this strategy often means the ruin of many virtual stores precisely because it undermines the final profit margin and hence the financial health of the business.

But in an environment where competition is too aggressive, what to do? How can I maintain the sustainability of my prices without losing the attention of my consumer? It happens that, in e-commerce, the price war is just one of the resources of customer loyalty.

Now, as in this Red Ocean that online retailing has become, are there companies that have emerged and become benchmarks in the industries in which they operate? How did they take the lead role? The answer lies in building a strong brand.

 

Pricing your Products in your online eCommerce Stores

 

A pope of modern marketing, Philip Kotler postulates in his book Marketing for the 21st Century that “if customers only bought products and did not care about additional services and benefits and if all categories were the same, all companies would have to accept the price established by the market.
Of course, there are no such markets.

Companies are forced to ‘temper’ their offerings to customers in ways other than price. Companies that add value have already developed a stronger benefit package to gain customer preference by offering: customization, convenience, faster service, more and better services, guidance, training and consulting, an extraordinary guarantee, useful tools hardware and software, etc. “.

In other words, the customer does not only buy products, but benefits associated with a strong brand in which he feels confident.

But how to get there? Although each case is a case, there are some principles that can guide this journey. His first one would obviously be balancing marketing strategies. It is important for the entrepreneur to know the importance of last click media, but not to increase the funnel with demand generation strategies.

There is no more performance x branding. Everything is performance! The entire media strategy should be thought according to the consumer journey and attribution models.

Engagement and assertiveness are fundamental. To do this, you have to leave the most natural and fluid communication between all the channels and combine your media strategies with your presence in social networks.

Lovebrands stand out right by word of mouth, when an engaged and loyal consumer starts to advocate for their products and services. Moreover, approaching your client via social media means better understanding who your audience is, improving a relationship, and even solving problems through these media.

Think of your products not as an end, but as a means to reach the consumer. To consolidate, you need to show that your store is here to stay. You need to be a specialist and work with assortment and content. Specialized companies, for example, in the sale of certain articles are references precisely because they gather, in a single space, products that other stores do not have.

Finally, the service. Excellence in customer service is crucial to the consolidation of a brand, after all, the consumer wants to be well served, receive clear information and feel at ease when accessing your store.

Often this will make all the difference by justifying a relatively higher price, which he will pay without hesitation, knowing that it will be worth the investment.

In times when virtual stores are having to reduce their free-shipping and low-price offerings to justify their investment in the e-commerce boom of the past decade, their brand will be the way to differentiate companies that will survive in the coming years from those that will break and cause a tremendous headache for their owners. It’s no secret to anyone. Differentiation is vital in any market. And now it’s time for online retailers.

 

strategy of selling in an e-commerce

 

Know your customers:

The strategy of selling in an e-commerce is a crucial factor in increasing sales and boosting your brand. Various shopping carts include a buyer registration system. This way, every time someone buys a product in your store, you can see data such as your name, email, phone, age and location, among others.

Shopping carts let you create statistics on how many products were purchased by a customer, the sales peaks, and which products were the best-selling in the week. With this information in mind, you can decide which customers can send you promotions or what are the best days to send emails with information about your e-commerce.

Trust the data:

Whether or not a person deals well with numbers, it is always important to have the latest data from your online store. Seeing the days or times when you have the most visitors to your site will allow you to understand the best time to publish new products or promotions.

Average purchase value statistics will help you set the standard price your customer expects. Negative data, such as the least viewed or commented products, will serve to make improvements and adjust your site to meet the expectations of your customers and help improve the brand.

The shopping cart management panel lets you see real-time visitors to your page, sales made during the last few months, and the sales overview with easy-to-understand graphics. That is, you do not have to be a finance expert to understand the behavior of your online store.

Offer more means of payment to your customers:

Payment facilitators provide you with an easy-to-install module in your chosen shopping cart. The digital entrepreneur will not need the technical knowledge to receive payments from customers in his virtual store.

Only a few data from your account will be required by your payment facilitator to integrate credit cards with multiple available flags and bank statements. Your customers will be able to pay securely and the shopping cart module will show the value of the sales made.

If you want to start selling online with a shopping cart, search for developer solutions and see the options that make it easy to create and manage your virtual store.