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 merchants make is using a simplistic calculation, 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 essential 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 applied 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 (credit card, for example). ‘These values, if not well calculated, erode the profit margin,’ emphasizes the expert.

3) Pay attention to shipping costs, especially in marketplaces: Those selling on marketplaces need to be extra careful with shipping costs. ‘Shipping can vary significantly depending on the region and sales volume. Therefore, it’s necessary to monitor these fluctuations to avoid losses,’ advises Fabio.

4) Study your target audience’s behavior 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 disconnected from your target audience,’ points out the expert.

5) Establish a realistic and sustainable profit margin: Defining an adequate profit margin is necessary to ensure business continuity. ‘Smart pricing is what sustains long-term store growth. Therefore, the final price must reflect a careful analysis of all factors impacting your e-commerce,’ concludes Fabio.