Ecommerce pricing dilemma

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I'm selling a product which isn't that common online. Hence, finding a price of an identical product isn't easy from other online retailers. There are a few products similar to mine but they are branded. Should I use their price as reference?

Another issue is that there's a likelihood that my supplier sells on DHGate.com and their products showed up on the 2-3 place for one of the keyword phrase with high traffic with a lot of the products that I sell. Should I consider them when pricing my own product? Because if I do my profit margins will be very little as opposed to the price that the branded items are getting of a similar quality.

Thanks in advance!
#dilemma #ecommerce #pricing
  • Profile picture of the author bonvideo
    1. - Yes use their price as reference and add some additional value (ex: bonus, gifts) to yours just to make sure you are not overpriced but at the same time you are not selling under priced products

    2. - Most people do not like DhGate as per its location, China if you can successfully shield your website Image as to be located in USA, etc use some US Toll free line and USA address etc you can literally fairly compete with your current provider, etc.

    I wish you success!

    Mauri


    Originally Posted by TheEliteWarrior View Post

    I'm selling a product which isn't that common online. Hence, finding a price of an identical product isn't easy from other online retailers. There are a few products similar to mine but they are branded. Should I use their price as reference?


    Another issue is that there's a likelihood that my supplier sells on DHGate.com and their products showed up on the 2-3 place for one of the keyword phrase with high traffic with a lot of the products that I sell. Should I consider them when pricing my own product? Because if I do my profit margins will be very little as opposed to the price that the branded items are getting of a similar quality.

    Thanks in advance!
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  • Profile picture of the author jrgattison
    I agree with everything Mauri said but in addition to pricing understand that your marketing is going to be the biggest part of what make you successful with your products. Define your target specifically and then make sure that they are wiliing to pay the price for you being based outside of China.

    Adding that additional value and having great customer service keeps customers coming and paying even a premium for your products if you add that value. But in order to get them in the door you have to let them know that you are open.

    Hope this helps.

    Kendall
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  • Profile picture of the author Trucker
    terapeak.com will possibly help you, let me know if you need more assistance
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