9 Best Pricing Strategies for Your E-commerce Products

1. Cost-Plus Pricing

• • Calculate total COGS (cost of goods sold)
• • Include operational costs
• • Add marketing and overhead expenses
• • Apply consistent markup percentage

2. Dynamic Pricing

• • Monitor competitor pricing
• • Adjust for demand fluctuations
• • Consider seasonal variations
• • Use automation tools for optimization

guide to e-commerce automation

3. Psychological Pricing

• • Use price endings (.99/.95) for perceived value
• • Bundle similar items for perceived savings
• • Anchor with higher-priced options to frame value

4. Bundle Pricing

• • Create product bundles with slight discounts
• • Combine complementary products
• • Highlight savings vs. buying separately

5. Value-Based Pricing

• • Price based on customer-perceived value
• • Differentiate with quality, speed, or support
• • Use reviews and proof to support higher pricing

6. Competitor-Based Pricing

• • Track key competitor prices regularly
• • Undercut slightly or match with better service
• • Raise prices when you add unique value

7. Penetration Pricing

• • Launch low to gain traction fast
• • Gradually increase as reviews and ratings grow
• • Use sparingly to avoid long-term margin loss

8. Premium Pricing

• • Price higher to signal quality
• • Pair with strong branding and presentation
• • Ensure delivery speed and support match the promise

9. Geographic Pricing

• • Adjust for local shipping costs and taxes
• • Use region-specific bundles
• • Consider currency and purchasing power