Pricing is one of the most important and challenging steps for those working in digital commerce. According to Ecommerce na Prática, a global leader in e-commerce education, incorrect pricing can compromise the entire financial health of the business, generating losses or driving customers away due to prices that are out of touch with market reality.
According to Fabio Ludke, an expert at Ecommerce na Prática, the most common mistake made by store owners is making simplistic calculations, merely doubling the cost value. ‘Pricing needs to consider a series of factors beyond the direct cost of the product. This includes expenses related to production and storage, payment method fees, taxes, shipping, and the general maintenance of the store,’ he explains.
To help those who are starting out or want to review their strategy, the expert mentions five key points for defining the ideal selling price:
1) Know all your fixed and variable costs: Before listing any product, it’s crucial to have a detailed mapping of the costs involved. This includes raw materials, production, storage, packaging, operational costs of the online store, and marketing expenses. ‘Having clarity about the gross costs of e-commerce is the first step to avoiding future losses,’ warns Fabio.
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’s Simples Nacional, Lucro Presumido, or Lucro Real. Additionally, one must pay attention to the fees charged by payment platforms (such as credit cards). ‘If these values are not well calculated, they erode the profit margin,’ highlights the expert.
3) Pay attention to shipping costs, especially on marketplaces: Those selling on marketplaces need to be extra careful with shipping costs. ‘Shipping costs can vary significantly depending on the region and sales volume. Therefore, it’s essential to monitor these fluctuations to avoid losses,’ advises Fabio.
4) Study the behavior of your target audience and competitors: Pricing 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 tune and won’t resonate with your target audience,’ points out the expert.
5) Establish a realistic and sustainable profit margin: Defining an adequate profit margin is necessary to ensure the continuity of the business. ‘Smart pricing is what sustains the store’s growth in the long term. Therefore, the final price must reflect a thorough analysis of all factors impacting your e-commerce,’ concludes Fabio.
