๐ก ๐๐๐ฒ๐ฟ ๐๐ผ๐ป๐ฑ๐ฒ๐ฟ๐ฒ๐ฑ ๐ต๐ผ๐ ๐ฎ ๐ฝ๐ฟ๐ถ๐ฐ๐ฒ ๐ฐ๐ต๐ฎ๐ป๐ด๐ฒ ๐ถ๐บ๐ฝ๐ฎ๐ฐ๐๐ ๐๐ผ๐๐ฟ ๐ฐ๐ผ๐ป๐๐ฒ๐ฟ๐๐ถ๐ผ๐ป ๐ฟ๐ฎ๐๐ฒ? ๐ค
Let me share something, I recently observed with one of our clients whoโs selling menstrual cups on Vendor Central account. One of their top selling products, previously priced at ยฃ๐ญ๐ด, was increased to ยฃ๐ฎ๐ญ. Now, at first glance, you might think a higher price equals higher sales, right? After all, a higher AOV can look promising. But here's what actually happened:
๐ป ๐๐ผ๐ป๐๐ฒ๐ฟ๐๐ถ๐ผ๐ป ๐ฑ๐ฟ๐ผ๐ฝ๐ฝ๐ฒ๐ฑ ๐ณ๐ฟ๐ผ๐บ ๐ฏ๐ฌ% ๐๐ผ ๐ฎ๐ฎ%
๐บ ๐ข๐๐ฒ๐ฟ๐ฎ๐น๐น ๐๐๐ข๐ฆ ๐ถ๐ป๐ฐ๐ฟ๐ฒ๐ฎ๐๐ฒ๐ฑ ๐ฏ๐ ๐ญ๐ฌ%
As you can see, the price hike didn't deliver the expected results in conversions, and the seller is now facing higher costs with fewer sales.
Now, the question is: ๐ช๐ต๐ฎ๐ ๐ฐ๐ฎ๐ป ๐๐ฒ ๐ฑ๐ผ ๐๐ต๐ฒ๐ป ๐๐ฒ ๐ฐ๐ฎ๐ปโ๐ ๐ฐ๐ผ๐ป๐๐ฟ๐ผ๐น ๐๐ต๐ฒ ๐ฝ๐ฟ๐ถ๐ฐ๐ฒ? ๐ค
One immediate solution that comes to mind is running coupons or vouchers, but hereโs the thing:
๐ข Customers are sharp. If they notice the price increase, they may assume the coupon is just bringing the price back to where it was before. This could make them less likely to engage.
๐ข Sellers bear the cost of the voucher, meaning they might not be seeing the ROI theyโre hoping for.
๐ฆ๐ผ, ๐๐ต๐ฎ๐โ๐ ๐๐ต๐ฒ ๐ฟ๐ฒ๐ฎ๐น ๐๐ผ๐น๐๐๐ถ๐ผ๐ป ๐ต๐ฒ๐ฟ๐ฒ?
๐ ๐๐ผ๐ฐ๐๐ ๐ผ๐ป ๐๐ฎ๐น๐๐ฒ ๐ผ๐๐ฒ๐ฟ ๐ฝ๐ฟ๐ถ๐ฐ๐ฒ: Instead of directly trying to offset the price hike with a voucher, create more value in your listings. Enhance your A+ content to highlight product features, benefits, and differentiate why it's worth the price increase. If the customer feels theyโre getting more for the price, they may be less sensitive to it.
๐ ๐๐ฟ๐ถ๐๐ฒ ๐๐ฟ๐ฎ๐ณ๐ณ๐ถ๐ฐ ๐๐ต๐ฟ๐ผ๐๐ด๐ต ๐ฆ๐ฝ๐ผ๐ป๐๐ผ๐ฟ๐ฒ๐ฑ ๐๐ฑ๐: Since conversions are down, increasing visibility through well targeted PPC campaigns could help you offset the lower conversion rate.
๐ ๐ง๐ฒ๐๐ ๐ฑ๐ถ๐ณ๐ณ๐ฒ๐ฟ๐ฒ๐ป๐ ๐๐๐ฟ๐ฎ๐๐ฒ๐ด๐ถ๐ฒ๐: Use coupons strategically, but try to create urgency with time limited offers or discounts. Customers may appreciate the urgency and still feel like theyโre getting a deal.
The key here is adapting and evolving your strategy based on how price changes are affecting the overall performance.
Iโd love to know your thoughts on this! Have you faced something similar? Drop your comments below! ๐
