Did you know that 46% of product searches begin on Google?
It’s an important statistic you should consider as an online seller. If you are selling online you need to add your products to Google Shopping, you should consider it.
First, let’s take a look at what Google Shopping is.
Google Shopping is an online marketplace for online shoppers to streamline their searching and buying process. It also allows shoppers to make price comparisons on each particular item. The comparison allows consumers to choose the product they are willing to pay for.
Since pricing is a crucial factor for online sellers and shoppers. As a retailer, you need to develop pricing strategies that are aligned with your business goals and objectives.
But what are the best strategies you can adopt for Google Shopping pricing?
Let’s find answers to this question.
Today we will take a look at the following.
- Why Pricing Strategy is Essential on Google Shopping
- Profit Maximizing Pricing Strategies for Google Shopping
- Best Tips to Seamlessly Adopt a Pricing Strategy
Why Pricing Strategy is Essential on Google Shopping?
Many of your customers will do a Google search to start their buying process. Google Shopping gives visibility to your products in search engines. That’s why developing a pricing strategy is essential for Google Shopping. You will be one of the sellers creating a price range for shoppers. Pricing can be an essential metric for their willingness to pay.
To get the best results, you can use price intelligence. For a definition, it’s a process of tracking your competitors’ prices and their price changes. And then, you will determine your minimum and maximum price range around formulas. Price intelligence allows you to have a clear understanding of multitudes of competitors. You will also have a clear picture of different price points and overall pricing strategy of your competitors.
The significant factors affecting your pricing strategy are the following.
- Competitors’ pricing strategy.
- Customers’ willingness to pay
- Brand image
- Your products relevance such as conversion rate and demand
Considering all these factors before establishing your pricing strategy would be best.
Profit Maximizing Pricing Strategies on Google Shopping
There are various pricing strategies in e-commerce that you can adopt. But which ones are the best for your online business?
The answer depends on your target customers, competitors, and market demand. Let’s take a look at different markets in e-commerce.
If you are selling in a competitive market such as electronics, cosmetics or beauty products you can consider dynamic pricing or a competitive pricing strategy. These two are similar pricing strategies. The main difference is that competitive pricing considers competitors’ prices as a significant factor while determining the price.
Let’s explain two of them.
Competitive Pricing
Competitive pricing is strategy where you use data from the competition. You will use competitors’ prices as a significant factor to determine your final price. By collecting and providing data, you can decide on product price rules.
Your rules can be the following.
“Match my competitors’ price.”
“Price my products 10$ higher than my competitors’ price.”
Dynamic Pricing
In dynamic pricing many other internal and external factors influence your pricing. It allows you to set flexible prices based on market demand, competitor’ prices, and customer willingness to pay. These factors can different based on your target market.
As I’ve mentioned, you can consider dynamic or competitive pricing methods if you’re in a competitive market. These two are easy to adopt while using a competitor price tracking tools. They allow you to save time and effort to collect competitor price data. You can set price rules to build your strategy around formulas for competitor pricing. They find your newest competitor in e-commerce for the products you are selling.
Pricing your products around a pricing strategy can strengthen your competitive edge and create a better brand image. It will be an excellent strategy for Google Shopping, where your prices are essential for shoppers.
But what if you target a vast market?
For example, imagine that you target many customers where attracting them is essential, you can consider psychological pricing strategies. It’s one of the ways to impact customers’ shopping behavior psychologically, making them feel they are getting a good deal.
Psychological Pricing: Odd Pricing
Pyschological pricing is a strategy that allows you to set odd prices, such as $0.99 or $1.97 instead of $1 or $2. This strategy aims to make the product look more appealing, as shoppers tend to view odd prices as being cheaper or better value. Odd pricing can help you increase sales by attracting more customers sensitive to price changes or discounts.
Psychological Pricing: Rounded Prices
Some marketers believe that rounded prices generate more demand than odd pricing. A strategy where your price will always round to the second place past the decimal. Some customers consider round prices as a signal of higher quality. If you are working with a pricing tool, you can round your prices automatically. You can consider this strategy for your high-priced products.
Best Tips to Seamlessly Adopt a Google Shopping Pricing Strategy
Determining a pricing strategy is a great way to increase your sales and maximize profits. But you need a sustainable strategy to increase your profits continuously, right?
Therefore, we have listed some of the best tips while adopting a pricing strategy.
Research Your Target Market
E-commerce is a dynamic marketplace where it’s developing for new updates. That’s the main reason you need to research your target market continuously. It includes your competitors & your customers. Please take a look at your competitor’s websites, their offerings, and their social media presence. These activities can give you a better idea of where you position yourself compared to your competitors.
Track Your Customers’ Behaviors
You should be aware of your shoppers’ activities to identify whether your pricing strategy works well. You can observe your customers’ shopping to evaluate your pricing strategy’s performance. Look at which of your products get the most traffic, on which day of the week, and at what time. You can consider these times and create a new offer or deal for some of your customers paying the most attention to these products.
Test Your Prices
Even though your pricing is excellent and allows you to increase your sales, you should always test new pricing strategies. The main reason is that the e-commerce market is constantly changing and evolving. That’s why you should always work to offer the best Google Shopping price possible to your target customers. Research the market and ask questions to your customers. You can create a quick survey by emailing some questions about your pricing. You can have a better idea of their willingness to pay. Then, you can continue increasing your sales.
Takeaways
Google Shopping pricing is an essential part of your e-commerce business. Dynamic pricing is a flexible pricing model you can create based on your business goals. Competitive pricing considers competitors’ prices as a significant factor while determining price. On the other hand, psychological pricing is a strategy that aims to attract customers by creating a feeling that they are getting a good deal.
The important thing is that your pricing strategies should be aligned with your business. Whatever pricing strategy you choose, you should always be aware of your market demand, competitors’ prices, and customers’ willingness to pay. These two are essential metrics while developing your Google Shopping pricing.
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