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Pricing in E-Commerce and Profitability Strategies in Your Sales

To determine the selling price of a product on your e-commerce site, you need to consider certain factors. If the products you will sell are products of your own production; then you can set a selling price after adding your production costs and basic expenses, subtracting a cost. For example, you produce a table and employ 3 people. Let’s assume that you produce 20 tables per month, taking into account the production costs of the tables you produce and other side factors. The cost of these tables is 200 TL. Tables cost you 4,000 TL per month. Let’s assume that when you calculate the cost of your workers, including you, you have a total of 10,000 TL per month. You will only pay off your costs when you sell these tables for 500 TL. If you want to make a profit, you will have to increase the sales price, not 20, but 30 of these tables.

How to Determine Pricing in E-Commerce?

In the above paragraph, we explained the basic cost logic. The same logic works if you do not produce the products yourself and sell them from another manufacturer; but here you would not cost 3 workers, instead maybe you would cost 1 salesperson. After all, you have a cost in every way and this affects your selling prices. During the e-commerce sales process, you will encounter costs arising from situations such as shipping, return and cancellation. When selling in e-commerce, pricing is done by calculating these total costs.

Pricing Strategies in Sales From Your Own E-Commerce Site

The reason we write your own e-commerce site is actually. As you normally know, sales on the internet generally proceed in 3 ways. Either you sell from your own e-commerce site; or from social media platforms such as letgo, instagram, facebook, google merchant or marketplaces platforms such as n11.com, amazon.com.tr, gittigidiyor.com, hepiburada.com. Since the costs of each platform are different, we will explain pricing on your own e-commerce site in this section. Since there is no marketplace commission on your own site, you can create a price by reflecting your costs and sell at a much more affordable price than on marketplaces. As you know, when you sell in marketplaces, extra commission costs arise. When pricing, first of all, do the price research of the products you will sell and determine your prices accordingly; but never sell products at cost or loss, this is not a good strategy.

Pricing Strategies in Sales in Marketplaces

Marketplaces are channels such as n11.com, Hepsiburada.com, amazon.com.tr, and when you sell in these channels, you pay a commission on every product you sell. There are commissions of 6-10 percent on computers and 15-20 percent on products such as clothing and textiles, and in addition to your profit margin, you also reflect the marketplace commission on the price. If you sell a product for $ 5,000 on your own site, and this product is an iPhone, then you need to sell this product on n11.com for a price of 5,500 by adding a 6-10 percent commission, so that you keep the costs. In addition, you should not miss the advertising cost and shipping costs such as 1 percent. Marketplace commissions remain a bit high nowadays and are challenging companies dealing with e-commerce, if your hand is strong, we recommend that you agree with the media at certain rates.

Selling Pricing Strategies on Social Media Sites

If you are selling on Letgo or Instagram, you need to look at the commission rates there and set a sale price based on these commission rates. If you skip items that will cost you costs such as shipping, advertising, commission and returns in your e-commerce sales, your hidden losses may arise. You should also be careful about expenses such as tax and VAT differences; because when you sell on the marketplace or on social media, the channel will bill you. Since you will also bill the customer, you need to be very careful about the invoice processes. You don’t pay a commission right now when you sell on Instagram, but it might not be that way in the future. Therefore, we recommend that you research the conditions of the medium you are selling well.

How to Make Correct Pricing in E-Commerce?

What we call correct pricing in e-commerce is actually your profit. This profit should be a reasonable profit and should make you happy too; likewise, it should make the customer happy. If the customer and the seller are not happy, then e-commerce sales will not be very successful and your company will suffer. The customer is now very price-oriented. This is actually not the customer’s fault. The customers were taught or trained in this way because of the companies that sold products to the customers at a loss, then went bankrupt and did not support them. Now, this customer wants to buy cheap and also wants quality service. Companies that cannot respond to these requests go bankrupt. It is beneficial to buy and sell products that can be sold and have good costs while determining a correct price. Or you will proceed without compromising your prices. There is no such thing as I have to sell it cheaply. Why does Apple sell MacBooks for 20 thousand liras and do not compromise on the price, I recommend you to think about this.

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