3-4 minute read time
To develop a successful ecommerce strategy, it all comes down to focusing on four aspects of the Ecommerce Equation: traffic, conversion, price, and availability. If a brand optimizes its strategy in each of these areas, it can achieve profitable ecommerce growth.
Determining and maintaining consistent pricing across marketplaces, like Amazon and Walmart, can be overwhelming. Preserving brand control requires access to accurate data and essential resources.
Here are 4 Strategies to optimize your pricing strategy:
1. MAP Compliance
A successful pricing strategy involves establishing a solid MAP policy and enforcement strategy. This policy safeguards your brand, protects resellers’ margins, and maintains fair competition across distribution channels.
To enforce MAP compliance, monitor online product prices across digital channels. Identify market fluctuations and sellers violating your policy.
2. Omnichannel Price Parity
Creating the same brand experience for your customers across multiple channels, including pricing, helps establish brand control in the long run. The reality of ecommerce is that your consumers will cross-shop, hoping to find the cheapest price before making a purchase.
Maintaining consistent pricing and quality across all marketplaces and channels for your product through marketplace syndication ensures a seamless brand experience for consumers. This strategy also ensures protection against unauthorized sellers, directing sales to your brand.
3. Distribution Control
Losing control over your distribution can lead your product into the hands of disjointed sellers, driving down your marketplace price for quick profits.
Narrowing your distribution directly impacts your pricing strategy and protects your brand.
A more restricted distribution provides control over pricing, enabling precise definition of how sellers set prices, who they sell to, and how they handle extra inventory.
4. Unauthorized Sellers
Brands often face challenges in maintaining control over their pricing strategy when unauthorized sellers operate unchecked. These situations resemble a frustrating game of whack-a-mole, or some brands may simply ignore warning signs, hoping for the best.
However, mishandling a disjointed selling strategy can lead to severe consequences, adversely impacting profitability.
How You Can Improve Your Pricing Strategy With BetterBrands
Without a proper pricing strategy, brands risk entering the Profitability Death Spiral, causing harm to brand equity, hindering conversions, and potentially leading to Buy Box Suppression on Amazon, which in turn impacts traffic. As prices continue to drop, your profit margin diminishes, resulting in an overall decrease in revenue.
To steer clear of the Profitability Death Spiral, it’s crucial to establish a pricing strategy. As a leading ecommerce accelerator and top seller on Amazon, BetterBrands provides the necessary data and expert teams to maximize your profitability and accelerate your brand across all marketplaces.
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