The pandemic forced many retailers to close their physical stores and look for options outside the realm of offline or physical stores. There was an unprecedented disruption of commerce. Since the retailers and brands face a daunting multitude of challenges, they had to switch to eCommerce platforms. However, cash flow, supply chain disruption, changing consumer demands made it quite overwhelming for retailers to stay afloat.
To ensure a future where they don’t only survive but thrive, they must collaborate with platforms where they don’t have to deal with lower demand or marketing glitches. Further, many eCommerce platforms don’t offer any benefits to their retail partners.
As a result, the retailers have to sell below MSRP because of the deals, offers, and promotions. Also, many eCommerce platforms don’t coordinate with their retail partners about the promotions or support them in profit generation.
Starting 2022 and beyond, you will see the following two aspects of eCommerce happening more than ever.
- Consumers will profoundly change their shopping behaviors.
- A significant consolidation to retailers will become important rather than an option.
This is why retailers must join hands with the eCommerce platform that allows them to use this unique pricing strategy. Want to know more? Before that, let’s brush up on a few aspects of retailers that often get ignored. Let’s get started!
For starters, retailers lose more than 50% of potential sales just because they cannot find what they are looking for on an eCommerce platform. This is why more than 40% of US customers abandon a purchase.
That’s not all! Bad user experience is another way retailers and brands lose their potential sales and revenue generation streams, let alone profit margins. Sometimes the sites are so cramped with irrelevant pop-ups that they don’t serve any purpose. Moreover, lack of personalization further makes retailers lose their chances of gaining enough traction that could end up in sales.
But mostly, it’s the pricing strategy that causes a hindrance in generating enough profit margins. The untimely deals, discounts, and selling below MSRP are some of the many issues retailers face. That’s how Buyr.com came up with a pricing strategy that not everyone thought was feasible for eCommerce platforms. Let’s talk about it more!
As the name suggests, price negotiation obviously means that the consumers get a chance to “name their price” on the products they wish to buy. It allows them to bid the prices as per their convenience. You must be wondering how it will be beneficial for you.
It is a fantastic pricing strategy that allows retailers to run their businesses online profitably and be competitive at the same time. This is a part of a dynamic pricing strategy where the eCommerce platform changes the final pricing after checking the KPIs thoroughly.
It comes up with prices after going through different customer and traffic data types. Factors like changes in consumer demands, changes in the inventory, and competition play an essential part in setting the minimum pricing below which the customers won’t be able to bid the prices.
Thus, allowing retailers to retain maximum profits. Dynamic pricing strategy allows the brands to get past the roadblocks by keeping the best pricing aligning with their product’s quality and profits generations.
That’s how Buyr.com enables retailers to be flexible yet achieve their revenue generation goals and milestones.
Price negotiation pricing strategy allows retailers to set a minimum price, and customers can’t bid their price below this threshold price. This allows the retailers to create demand and help boost sales. Plus, with real-time traffic monitoring and KPIs, you will set the price that works the best at that time. This allows retailers to keep up with the stock and inventory and be available for their customers in the most efficient way.
Further, this dynamic algorithm allows retailers to use data and insights to:
- Increasing sales
- Keeping them competitive
- Understanding more about consumers
- Managing their inventory
- Using the right price to meet consumer demands.
The eCommerce industry is ever-evolving. Popular brands try to use modern technologies to squeeze every other retailer or brand out. However, if you do it right, you can make a niche of your own even when more prominent players take the majority of the share.
The price negotiation model allows the smaller and medium players to increase their profit margins. As per a study, a 1% increase can help to improve profits and profit margins by around 10%. It’s because this pricing strategy allows you to keep up with the SKU prices and respond to changes in the demands and costs almost instantly. Hence, improving your revenue generation.
Buyr.com is one of the pioneers who implemented dynamic pricing models or price negotiations into their business structure. They helped retailers avoid leaving money on the table because of poor pricing structure, strategy, and execution.
The company flipped the equation where both retailers and customers are valued simultaneously. But how are they helping retailers?
- The company provides simple product listings
- They provide dynamic pricing input
- They provide algorithm matching
Thus, it enhances the shopping experiences, thus allowing retailers to maximize their inventory value. So, you can capture the customer demands and maximize sales without losing money on the table.
There is a lot of competition out there. And the eCommerce industry is quite fierce. This is why businesses need to employ strategies that allow them to stay competitive without losing revenue and profit margins. This unique pricing model mentioned above will enable retailers and brands to feel empowered and keep up with sales.
With the help of Buyr.com, retailers and brands can keep up with the changing consumer demands without losing profit margins. Their dynamic pricing model structure helps retailers and consumers to grow and save at the same time. Isn’t that an attractive offer? You must grab this opportunity and try it to grow your business online.