As with many things in ecommerce, one size does not fit all, so it is important to measure and test the success of changes you make to your online store’s pricing strategy. Ideally, every change should be tested and validated with an analytics tool (i.e. Mixpanel, Google Analytics, Shopify Sales Dashboard).
For example, find out if your ‘Summer Sale’ (where you implemented one of these strategies) increased your conversion as you expected, or if the new, trendy products in the store are generating more profit than older products.
Equip your online store with appropriate strategies to help you sell more and stay ahead of the competition.
The reality of online retail pricing is that the lowest price doesn’t always win. In fact, pricing battles usually end with you pricing your products too low. Even with enough customers, you still may not make a profit. If you are lowering your prices to a point where you are losing money, you should consider finding a better source, or adjust your product offerings to include more profitable items.
Getting your online store into a pricing battle can hurt you in the long term as well. When you consistently price too low, your customers will always expect the lower price, even when it is unsustainable to your business. As a result, you could lose those customers over time.