The definition of pricing is one of the most important and challenging steps for those involved in digital commerce. According to Ecommerce na Prática, a global leader in e-commerce education, incorrect pricing can jeopardize the entire financial health of the business, generating losses or driving away customers with prices outside the market reality.
According to Fabio Ludke, a specialist at Ecommerce na Prática, the most common mistake made by retailers is to make a simplistic calculation, just doubling the cost value. “Pricing needs to consider a series of factors beyond the direct product cost. From production and storage expenses to payment method fees, taxes, freight, and store maintenance,” he explains.
To help those starting out or looking to review their strategy, the expert mentions five key points to define the ideal selling price:
1) Know all your fixed and variable costs: before putting any product online, it is essential to have a detailed mapping of the costs involved. This includes raw materials, production, storage, packaging, operational costs of the virtual store, and marketing expenses. “Having a clear understanding of the gross costs of e-commerce is the first step to avoid future losses,” warns Fábio.
2) Include taxes and payment fees in the calculation: many entrepreneurs forget to consider the taxes that apply to sales, depending on the chosen tax regime, whether it is Simple National, Presumed Profit, or Real Profit. In addition, attention should be paid to the fees charged by payment platforms (credit card, for example). “If these values are not calculated correctly, they erode profit margins,” highlights the specialist.
3) Pay attention to shipping costs, especially on marketplaces: those who sell on marketplaces need to pay extra attention to shipping costs. “Shipping costs can vary greatly depending on the region and sales volume. Therefore, it is necessary to monitor these fluctuations to avoid losses”, advises Fábio.
4) Study the behavior of your target audience and competitors: pricing decisions cannot ignore how much the consumer is willing to pay and what competitors are offering. “A market analysis helps find a balance between competitive pricing and a healthy margin. Ignoring this point will leave your business completely out of touch and will not resonate with your target audience,” the expert points out.
5) Establish a realistic and sustainable profit margin: setting an appropriate profit margin is necessary to ensure the continuity of the business. “Intelligent pricing is what sustains the long-term growth of the store. Therefore, the final value needs to reflect a careful analysis of all factors that impact your e-commerce,” concludes Fábio.
