With success of internet based shopping or e commerce, the business is gaining ground, traction, and recognition. With more and more people flocking various e commerce website to purchase products business was never so better. What is great to know is the fact that the business has changed significantly from owning to brick and mortar shop to directly selling the product to your customers from the comfort of your house or office. The roots of e commerce are not limited to just your neighborhood or surrounding areas but it is spreading globally.
But to have a successful business it is important to keep your cost as low as possible and the most imp thing is to keep the pricing right. Here is some list of the issues related to pricing that every business affiliate to online sales should pay very close attention to.
1 – Open ended Pricing
As you gain more business both nationally and internationally you have to keep a keen eye on the market prices and accordingly, you should keep your margins and price set. You have to keep in mind that each country has different scenario both politically and economically. For instance, if you are selling a product for 50$ on the international market you could not sell it at the same price in Asia as it is still a developing economy and you need to find a viable source locally to keep the cost low. Also, you have to keep up with your competitors otherwise you can loose your market share.
2 – Local Currencies
As the global trade has increased significantly and it is very easy to send and receive and convert money internationally, yet an unfamiliar currency while browsing your website can be hindering as people who don’t know other currency and only know their own might have a problem and confusion while purchasing and in the end they might abandon the purchase altogether. To avoid these cart abandonment you should keep the prices accordingly and keep the currency to local standards.
3 – Price Presentation
By understanding basic psychological skills like the human behavior you can increase your sales trust me it is true. Global exchange rates can cause a bargaining price look more like a no deal. For instance, if you have prized your product at say Rs954 this price look less appealing if you change it to Rs1000 or simply Rs 950 can have a profound impact as it is proven that by using round numbers makes people more comfortable than using complex numbers. Your customers should see the prices in clear round numbers as this will simplify their decision-making process.
4 – Local Payment
while asking your customers to pay for their purchase in a way they are not accustomed can make people suspicious of the site and can become a source o hindrance for your revenue. While setting up your business in another reason you should always keep in mind the way people prefer the payment method. For instance in Japan people prefer to pay through the Koni bi payment method, while in China people prefer we chat, also in India cash on delivery is given more preference.
5 – Taxes
Every country has a different system of tax and showing the your customer the sales tax in ways that are familiar to them will help you in increasing trust with your customers. You have to keep in mind the legality of tax disclosure as each country has their own set of rules. by compiling to these simple s tips on tax requirement you can remove the suspicions of your customers and increase your brand value.
6- Savings and offers
Besides keeping a competitive price you should also offer discounts and cash back to your customers as it helps in increase of your sales and there by increasing your revenue and sales. Many e-commerce companies use this trick to gain customers. For instance Amazon: Amazon Cashback and shop clues: shop clues cash back offer to give to their customer’s deals that include various methods like cash back through online payment or getting offers through cashback websites like save monk.
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