6 Ways to Provide Value in eCommerce Websites

6 Ways to Provide Value in eCommerce Websites 3 min read

With all eCommerce stores, there needs to be some practical value in the products that are being sold. The end-user needs to see some reason to view your products, determine if they should buy it and then complete their purchase. Pushing a user through that sales funnel can, undoubtedly, be a very difficult task.

 

There are a few tricks, though, that you can use to increase the practical value of your products and ensure that your users actually buy what you want them to.

 

1.) Discounts are compared to initial price

This may seem like a no-brainer but it’s important to highlight. Take two scenarios involving the sale of a grill (or insert your product) here:

 

Store A: A grill is regularly priced at $350 is on sale for only $250. A huge discount! Right?

 

Store B: That same grill is on sale at Store B from it’s original price of $250 marked down to $240. An even lower price than the first store.

 

Which do more people choose? Surprisingly, even though Store B has a lower price, people are more likely to buy from Store A because they see more practical value in that price reduction.

 

2.) Price products based on a reference point

Branching off the prospect theory, eCommerce stores need to realize that their pricing is relative to a reference point. Older folks are basing their pricing comparison off a pricing scheme that was instated when they were young. That gallon of milk that was $1.05  in no longer that cheap.

 

It’s important to keep this in mind when pricing your products. Keep the pricing in your eCommerce store relevant to the target audience and try to promote some added value in what the consumer is buying.

 

If you’re puzzled here, think Infomercial sales. It’s cheesy but they actually work.

 

3.) Using the word ‘Sale’ will increase your sales

Researchers Anderson and Simester put this theory to the test. To do so, they sent out more than 50,000 catalogs for name-brand companies. Some products had the original price (the control group), while others had the word “Sale” next to it. The products were priced exactly the same.

 

The result: The products with the word “Sale” next to it, even though it was the same price as in the other catalogs, showed more than a 50% increase in sales!

 

4.) Permanent sales are a bad strategy

Have you ever driven by those mattress stores and seen a “70% off today only!” that stays up there for two or three months? The store is trying to draw in additional sales but in reality they’re actually hurting them.

 

People drive by and come to expect that everything is discounted there. Their discount price actually becomes the new norm. This effect is called diminishing sensitivityIf people think it’s always on sale, you’ll lose value in the product.

 

5.) Quantity limits increase sales

As discussed in our previous article on Social Currency when you promote scarcity, you also promote value. People believe that because there is only a limited number available per household or per purchase that it must be a good deal.

 

Quantity limits can increase sales by more than 50 percent.

 

6.) The rule of 100

This is an incredibly important lesson when it comes to pricing your products and providing value.

 

Whether or not to use the dollar amount discounted OR the percentage discount depends on the total price of the product.

 

For smaller ticket items (less than $100) you should use percentages. $10% off of a $50 product looks better than saying $5 off. Conversely, for larger ticket items (greater than $100) you should use the amount discounted. A $200 off coupon for a $2000 laptop deal will sell more product than a 10% off $2000 laptop.

 

Hopefully this article has provided a few useful tips in making your eCommerce website successful. As always, please feel free to leave any comments or questions below.

 

This article is part of our series of Why People Share Your Content.

 

Related Posts