Dynamic pricing strategy for e-commerce: How to set the highest profit.

Have you ever? Set up a single price ... and sit and hope that the sales will run or be still.

For the E-Commerce business owner or the marketing team, the question of "We can set the price of the product 'the best' or not?" It is a question that circulates in the head all the time. You may have encountered these situations:

• During the best -selling product festival But can't help thinking that ... if we raise a little more price How much more profits will be received?
• Once the promotion is over The same product, lying still in stock Have to make a promotion again to drain the item
• Competitors cut the same product price daily But we couldn't adjust the price in time Resulting in a unfortunately losing the opportunity to sell
• There are some products that some customers are ready to pay more expensive. But we sell at the same price as general customers, making it miss "more profits"

If you are facing these problems You are not alone. This is the classic challenge of the "Static PRICING price settings in the battlefield that the market changes every second.

Prompt for illustrations: Online store owners are sitting in front of the temple. One side is a high sales graph. The other side is a plumbing graph. Convey the uncertainty of the old price settings

Why is the old price setting up to "according to the game" in time? E-Commerce

Many times sticking to "One price for sale everyone" is not from ignorance. But from the familiarity and complexity that is hidden behind Setting the same price Often have the foundation from:

• COST-PLUS PRICING: We are familiar with the price calculation from "cost + profit that you want", which is an easy way. But not considering "Value in the customer's eyes" or "The price of competitors" in the market
• Fear of losing customers: The idea that "If changing the price often Customers are confused and dissatisfied. "Many business owners do not dare to adjust the price to be in line with the real situation.
• Data and tool restrictions: In the past, the marketing needs of the market, competitors, or real -time customers are complicated and highly cost. Makes it difficult to set up prices
• The belief that the price of the product must be "stable": the creation of past brands often tied to the image of a stable price. Cheap adjustment, views that it may destroy the brand's credibility.

These factors become "chains" that make your business unable to move active enough on the e-commerce racetrack. The speed is the key.

Prompt for illustrations: Images, calculators, numbers, and cost documents are placed on the old desk, with chains to communicate with the old price setting methods.

If letting the price "still" continue ... what is your business risking?

Ignoring the price strategy in the digital age Is like taking a sailboat out of the sea without paying attention to the wind direction The consequences are more intense and clearer than expected:

• Lost Profit: You miss the opportunity to make the most profit during the high demand. And may have to sell losses to drain the stock during the low demand
• Market Share Loss: Competitors that use more flexible price strategies can easily attract customers. Both during the need for sales and the period that wants to make a profit
• Inventory Issues: The price that does not correspond to the demand causes the "Stockout" or "OverSTOCK", all of which are invisible costs.
• Lost the opportunity to learn customers: using a single price, so you do not see that each group of customers willing to pay (willingness to pay) at Which is a precious information for marketing Understanding through Personalization ideas in e-Commerce will help you see the image more clearly.
• The image of the brand is not modern: in the era where customers accept the price change of plane tickets or hotels. Adherence to one price may make your brand look. "Not flexible" and "can't follow the world"

Letting the "price" be the only set of numbers and ending Is to let one of the most powerful marketing tools ... rusting unfortunately

Prompt for illustrations: Graph showing the market share of one brand that gradually decreased, with a competitor brand with a changing price tag overtaking.

The solution is "Dynamic PRICING".

It's time to change the "price" from the standing numbers to become "tools" marketing that is driven by data. This strategy is ** Dynamic PRICING ** or "Dynamic Price Setting"

Speaking easily, Dynamic Picing is a "flexible" product price strategy and "can be modified in real time" based on various factors. That occurred in the market at that time, such as the level of demand, the number of products in stock, the price of competitors, customer behavior, or even the days of the day This is a way that the giant in the industry like Amazon, Agoda, or Uber is used to create competitive advantages and increase the maximum profit.

Mainly, Dynamic Picing can be divided into small strategies. Many forms Should choose to suit your business:

• Competitor-Based PRICING: Our price adjustment based on the price of competitors directly. May be lower, equal, or slightly higher To win the advantage
• Time-Based Prote: Setting different prices on time, such as raising some products during the weekend or a short flash sale in a short time. To stimulate sales
• Demand-Based PRICING: When the demand rises The price will increase accordingly. And when the demand decreases The price will be adjusted down. This is the same principle as the plane ticket price.
• Segmented Picing: Different price settings for different groups, such as special discounts for new members. Or customers who come back to buy again Which is part of the effective UPSELL and CROSS-Sell strategy

The use of these strategies Will change your price from "guessing random" to the decision that "True based on information" for additional in -depth information Can be studied from Harvard Business Review and Wikipedia

Prompt for illustrations: beautiful infographic shows 4 sub -strategies of Dynamic PRICING (Competitive, Time, Demand, Segment) with easy -to -understand icons.

Examples from Amazon: When the product price can be changed "Millions of times" in one day

If talking about a case study that uses the most powerful Dynamic PRICING No one is more than ** AMAZON ** The giant of the E-Commerce industry, which has been replaced by more than 2.5 million products per day!

Original problem: In the market with millions of sellers Stable price setting is impossible to compete at any time. If the price is set too high, no one will buy. If the price is too low, it will lose profit.

How to solve the problem with Dynamic PRICING: Amazon. Develop complex algorithms to analyze real -time enormous data:

• Competitor price: The system will scan the price of the same product from competitors throughout the web.
• User behavior: Which products are often seen, add a lot of baskets. The system will see it as needed and may increase the price.
• Stock: If the product is almost out of stock The price may be rebounded. But if there are too many stock The price may be adjusted to accelerate.
• Buying history: Each customer may not see the same price. Depends on the history of buying and loyalty to the brand

Results: The result is Amazon. Can "find a balance point" between "price competition" and "maximum profit". They can offer attractive prices to customers while maintaining good profits. This strategy is one of the important factors that made Amazon dominate the E-Commerce market to this day. This is a proof that Dynamic Picing is not just theory. But is a weapon that can create enormous business results

Prompt for illustrations: a graph showing the price of a product on Amazon that has moved up and down throughout the day. With a small icon (such as icon, wheelchair, competitors icon, watch icon), pointing to various points On the graph to explain why the price changed

Want to start doing Dynamic Pricing, what to do? (Checklist 5 steps)

Beginning using Dynamic PRICING may seem a big deal. But you can start from a small, try to follow the 5 checklist. This step is to apply to your store immediately:

1. Set a clear goal (Define Your Goal): What do you want to use the Dynamic PRICING for? To increase the maximum profit? To drain the product that is sold slowly? Or to compete for market share from competitors? Having a clear goal will help you choose the right strategy.
2. Collecting the necessary data (Gather Data): Starting from important data collection, such as the price of competitors for the main products, which product is selling at any time, or what promotions from competitors? You may start by surveying yourself first.
3. Choose a simple strategy (Choose a Simple Strategy): No need to do everything at the same time. Try choosing the easiest strategy for you, such as "Competitor-Based PRICING" by choosing 5-10 flagship products and keep an eye on our competitors and adjust the price of our day by day.
4. Use tools to help (Leverage Tools): Currently, there are applications and tools for various e-commerce platforms (such as Shopify, WooCommerce) that can automatically help to do Dynamic PRICING. These tools will help you track competitors and adjust the price according to the rules you set. Helps to save enormous time
5. Test and measure (Test and Measure): The best price setting is not a fixed formula. The important thing is to test and learn. You must try A/B Testing for E-Commerce to see which price adjustment (Conversion Rate), the best and then use that information to improve your strategy.

Starting step by step Will help reduce complexity and allow you to see results faster

Prompt for illustrations: large checklist images with 5 items with easy -to -understand icons (goals, magnifying glasses, strategies, tools, graphs, results) and someone is ticking at the first thing.

Questions that people tend to wonder (And the answers cleared)

Bringing new strategies Used, there are questions and anxiety. This is a common question about the Dynamic Picing that we have to answer.

Question: Frequent price adjustment Will the customers not satisfied and feel unfair or not?
Answer: It's a reasonable concern, but the answer is "depending on the method of communication." The new customers are quite familiar with the price changes from the tourism business or the service of the car. The important thing is transparency and reasonable, such as clear notifications that are the price of Flash Sale, special price for members. Or the price during the festival Doing with principles and not changing the original price of the customer in the payment process Will help reduce resistance from customers a lot

Question: A small business that does not have a Data Scientist team. Can Dynamic PRICING really do?
Answer: Absolutely! You do not need to create a complex algorithm like Amazon. Currently, there are "Pricing Automation Tools" or many additional apps on the E-Commerce platform designed for SME businesses, especially these tools. You just set the rules that are needed. For example, "Set the price lower than competitors A is 5 baht." The system will work automatically.

Q: Should we start using every product in the shop?
Answer: Not recommended to do all at the same time. Should start with a small group (Pilot Group), such as the top 5 best -selling products, highly competitive products, or products that are nearing the end of the age. So you can control and measure the effect closely When seeing good results and understanding the process, then gradually Expand the results to other groups of products.

Question: In addition to the price Can we still adjust anything Dynamic?
Answer: Excellent question! Aside from the price You can also change the "shipping" (such as free delivery when purchased in a short amount of time in a short time), "Free gift", or even "promotions" that each customer can not see the same. All of which are part of creating a specific experience of a person who can extend to the Subscription platform to generate continuous income as well.

Prompt for illustrations: Image icon, large question mark And there are 4 boxes, surrounded by each question clearly

It's time to change the "price" to be a secret weapon to make a profit.

At this point, you can see that Dynamic Picing is not too far or more complicated than your e-commerce business will be able to use. It is a change of view from the price settings. "Set up" that is attached to the cost. Come to set the price "offensive" that is truly driven by market information and customers

Allowing the price of your "still" to stay is no different from allowing business and business opportunities to slip every day. The beginning of the Dynamic PRICING may start with a small step, such as watching the price of competitors for just a few items. Or the TIME-Based promotion in the weekend, but these small steps are the beginning of creating a sustainable competitive advantage and unlocking the hidden profit potential.

The E-Commerce world has never stopped and your "price" should not stop as well.

You are ready to change the same price settings. To become a machinery machine? If you need experts to analyze and place a price setting strategy that is especially suitable for your business Click here to receive our E-Commerce efficiency service! We are ready to help you make a sharp decision and create maximum profits.

Prompt for illustrations: Arrow images that rise from the price tag Convey the growth of profits and sales With the backdrop of the Interface of the online store that looks modern

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