E-commerce Pricing Strategies

E-commerce pricing strategies are methods businesses use to set product prices online to attract buyers and maximize profits. These include cost-based pricing (covering expenses), competitive pricing (matching or beating competitors), value-based pricing (reflecting perceived worth), penetration pricing (initial low prices to enter the market), and dynamic pricing (adjusting prices based on demand and conditions). Sellers may also use discounts, bundling, or personalized pricing to influence purchasing decisions. The goal is to find the right price point that appeals to customers while ensuring business profitability.