What Are The Ecommerce Pricing Options?

The introduction of the internet has given rise to an increase in the range and style of ecommerce pricing strategies. The fixed price approach adopted by offline counterparts, whilst used to a significant extent, is not the only pricing mechanism employed in the online world. Companies that are looking for an ecommerce pricing approach can learn, adapt of adopt the following price considerations:

Dynamic pricing: This approach is utilized by companies who match price according to the changing demands of the market place. This flexible approach can incorporate auction pricing, seasonal factors and the stage the product is in relative to the product life cycle. The strategy can also be adapted to meet the goals and objectives of the company. If, for instance, the company is undergoing a product launch, it may wish to maximize cash flow by offering a special introductory price subject to a time deadline. This is used extensively by publishers of digital material who do not have inventory carrying costs and can offer substantial discounts upfront to gain immediate cash flow and to offset advertising costs.

Dynamic pricing is also used by bundling products together and offering discounts according to the quantity purchased. This provides an incentive for bulk purchasers. An adaptation of this approach is to bundle products together and offer cost savings on one of the items. In the case of digital products or membership based sites, the ecommerce pricing model can offer different packages graded according to goods or services provided. A gold, silver and bronze package, for example, may contain additional consulting bonuses, product bonuses or service offering depending on which package is selected. This provides a way for vendors to value add and customers to save on the cost of items that would otherwise be purchased separately at a higher cost.

Before implementing an internet pricing strategy, it is prudent to undertake some market research to investigate the current state of competition and to ascertain some insight into the purchasing behavior of the target market. The demographic profile that constitutes your likely market will provide more information and open up new avenues to investigate for pricing options.

With the increase in competition on the internet, ecommerce pricing changes to reflect the competitive nature of the online landscape and the changing purchasing habits and tastes of consumers. This is particularly the case where internet buzz precedes a product launch. When demand is high and supply is short, companies are taking advantage of this demand by keeping prices artificially high. When the hype dies down and supply becomes more plentiful, competition creates a pricing shift which is more favorable to the consumer.

How the History of eCommerce Has Cleared the Way For Entrepreneurs

The history of eCommerce is not only interesting but has proven to be one of the greatest developments of humankind over time. eCommerce also known to as electronic commerce, can be used to refer to the act of conducting business transactions and communication over electronic device such as computers. It involves the buying and selling of goods and services over digital communication networks and encompasses electronic transactions such as smart cards and electronic money transfers.

There has been a lot of confusion regarding the difference between eCommerce and e business. To explain the difference between the two, one will need to look at the manner and location in which the business is conducted. E business involves the conducting of business over internet networks. It is purely an internet affair and encourages buying, selling and collaboration with partners online so that unlike eCommerce where the business is conducted at a specified location, e business is conducted online anywhere and anytime. This difference as we will see later has its bearing on the history of eCommerce.

The first form of eCommerce was conceived in the late 20th century when electronic technology was used for the transfer of information and for conducting business transaction between different business entities. The enabling technologies at the time were the electronic funds transfer and the electronic data interchange. Drawing from this part of the history of eCommerce, many businesses came up with ways through which they could expand their influence within the market and these efforts and innovation gave birth to what are now used as automatic teller machines (atm’s), credit cards and telephone banking systems.

A time went by and with the introduction of high-speed internet connections and relevant security mechanisms; the history of eCommerce was fast tracked for the business idea to become what is it is today. More businesses and especially those within the banking industry saw a lot of growth over short periods of time. However, the eCommerce businesses experienced their lowest points during the ‘dot-com’ collapse that saw a great number of internet businesses crumble to their knees.

Calm was restored a few years later when most of the businesses and especially those in europe began to embrace eCommerce. History was written once again when business transactions, driven by the desire to serve the increasing worldwide customer service demands and regardless of size and nature were conducted over the internet. The most remarkable companies during this time were amazon, eBay and dell that despite conducting small internet transactions have grown to become the most formidable electronic business entities in the history of eCommerce.

eCommerce has made life much easier than it was two centuries ago. It has taken into account how busy life has become so that not many people enjoy the luxury of shopping from one store to another without any time constraints. Buyers are now able to shop for whatever they want just by a click of a button. You are also able to compare prices of goods and services from stores worldwide but from the comfort of your home. Like all things good, eCommerce has enlightened most people on the importance of technology. It has also made it possible for businesses to appreciate just how much a simple invention can change the face of your business. Such is the history of eCommerce.

How To Choose A Good eCommerce Website Development Company

In order to create a successful and efficient online store you need assistance from eCommerce web developers that will assist you in the creation of your website keeping in mind all the factors required to fetch maximum profits and boost sales. Below are the main aspects that should be considered by every website owner before hiring an eCommerce web designing company –

1. GO FOR SPECIALIZED COMPANIES – An eCommerce website is a long-term project and requires continuous support with regular addition and removal of items from the stock, price changes and introduction of various deals and discounts. This work can be done efficiently by people who have expertise and detailed knowledge of your website and its content. Hence go for website companies who have already specialized in this field instead of freelancers or acquaintances. Try to choose a reputable company for your work because companies having good name in the market are always determined towards satisfying their clients.

2. DEADLINES AND TIME-FRAMES – You must make sure that the developers hired by you will be able to complete the assigned work within the time-frame and provide you with the product within the specified date. In the current scenario time is money and no one is going to wait for a long time for your website to launch.

3. COST ESTIMATION – Before getting into any kind of commitment as the company to be transparent about the cost that will be involved. Prefer a company that offers additional services like graphic design, web hosting, copy writing etc. without any hidden charges. These kind of additional services are a godsend for people wishing to come up as a leading store on the on-line platform. Make sure that the service you get is worth every penny invested by you.

4. EXPERTISE AND SAMPLE WORK – Look for the reputable web development companies in your area and when you meet them ask for the reviews and go through their sample work before any final commitment. Also make sure that the company uses the best technology and the best eCommerce website development software. Go through the sample work of at least 2-3 different companies and compare their work before finalizing any of them. Talk to the people who have previously worked with that company and find out about their credibility of their services.

5. LOOK FROM THE USER POINT OF VIEW – Do not only look at only the quality of design your website after it has been created but go through its functionality from a user’s point of view. Check the portfolio and their client and user’s feedback about the kind of services they are providing.The most creative, flexible and reputed one will finally lead to the most efficient and best eCommerce web design for your website.

6. TRAINING AND SUPPORT – Make sure that you have the access to your website’s content 24/7 and you are able to update it personally from time to time. This will need you to have some kind of training which should be provided as a support from the website development company. A good website development company always makes sure that the final product delivered to you is fully customized.