Your prices can’t be a guess, especially when customers can compare you in seconds. Online store pricing is competitive when it covers your costs, protects your margin, and still feels fair to your buyer.
In this post, you’ll get 7 practical strategies to set prices you can stand behind, without racing to the bottom.
Table of Contents
Key Takeaways
- Competitive online store pricing starts with specific, consistent price points (avoid random or rounded pricing that feels inflated).
- Use loss leaders on select products to attract buyers, then earn profit on related items in the same order.
- Make discounts easy to spot with visual cues (sale labels, color, placement) so shoppers understand the deal fast.
- Show the regular retail price next to the sale price to highlight savings, but avoid racing to the bottom across your entire online catalog.
- Track competitor pricing with tools (Price2Spy, Prisync) and pair it with customer feedback to set prices people will pay.
How To Do Pricing For Your Store Online
1. Be Specific
Be specific in your pricing. If purchasing decisions are based on logic, it’s smart to ensure your consumers have a specific price in mind.
Consumers often think that shops will artificially round prices up, so they are less likely to press the button to buy your product.
Don’t choose a product that is randomly priced. Make sure that you know what the product is worth and price it correctly as you start your new online store or revamp an old one.
2. Use Loss Leaders To Keep Pricing Down
How to build an online store pricing right, lean into loss leaders. It may not sound like a good idea, but having loss leaders as part of your strategy is actually a very smart way to ensure your consumers will shop.
The reason is that if your local supermarket is advertising a product at a ridiculously low price, the customer will feel they are getting one over on the supermarket.
It looks like the supermarket will be losing money on this product, but that’s not the case. If you price a specific product particularly low, you know that you will draw people in.
For example, if your business sells barbecues, pricing some of these items low during the high season will mean you still make a lot more money, but customers will think you are not!
3. How To Build an Online Store Pricing Right With Visual Cues
Use as many visual cues for sale items as possible. If you lower the price of an item because you are putting it on sale, you need to make sure that people can see that.
These cues may include:
- Add a sale badge
- Show % of discount
- Use a contrasting price color
You don’t want customers wondering how much it costs? It should be obvious in your marketing and to your customers that these items are marked down.
I talked about the cost-of-living crisis. It’s important to realize that people love a bargain, so if they can save money on a particular product, they need to be able to see that it’s at a low price.
4. Show The Regular Retail Price
Always display the registered retail price. You need to send a clear message to your consumer, and that message is: “Look what you could have been paying.”
Often, if people could see the price they would have paid versus the price that you are charging, they are more likely to purchase the product. This is because they can see that you are giving them a great deal.
Of course, this is a strategy that you really should approach with caution. You shouldn’t start pricing your products lower than your competitors’, because it’s not good for business.
However, your products can still be cheaper than the registered retail price; if so, make sure you proudly display that.
5. Optimize Your Website
Speak to a designer about building an e-commerce website. You may know what your website needs, but you should speak with a designer to have it done for you.
They will ensure everything is optimized so people click the right things.
- Show shipping and taxes early
- Keep the price near the Add to Cart button
- Use clear comparison spacing for regular vs sale price
Once consumers see expensive items, anything after that will always feel like a great deal. This way, they will be much more willing to part with their money, which is exactly what you want them to do.
Designers will be able to align elements on your website so they are optimally placed, making customers more likely to buy your products. The cost of an online store website may not be inexpensive.
6. Check Competitors’ Pricing
To ensure your products are competitively priced, begin by identifying your key competitors. Use online tools such as Price2Spy or Prisync, or visit their websites, to gather pricing information.
Analyze their pricing strategies, noting any discounts, promotions, or price fluctuations.
Additionally, consider conducting customer surveys or focus groups to gauge their willingness to pay for your products relative to competitors’.
By closely monitoring your competitors’ pricing and understanding customer perceptions, you can strategically price your products to remain competitive.
A mini-checklist would include:
- List 5 competitors
- Track price, shipping, returns, and promos
- Update weekly for fast-moving categories, monthly for stable ones
7. Offer Plan Per Month Billed Annually
Annual billing plans can be effective for sales because they incentivize customers to commit to a longer-term relationship with a product or service.
By paying annually, customers often receive a discounted rate compared to monthly billing, making the offering more attractive. From a sales perspective, this can lead to increased revenue and cash flow predictability.
Additionally, annual billing reduces administrative costs associated with monthly invoicing and collection efforts.
This billing model also creates customer loyalty and retention, as customers are less likely to churn after making an annual commitment.
In Conclusion: On How To Build an Online Store Pricing
Learn how to build an online store pricing strategy that is the key to making more sales online for your business. It’s not just the pricing itself but how you present it to your audience and market it. Billed monthly or annually can make a difference to your buyers.
What are you doing to price your products right online for your store?
Frequently Asked Questions About Online Store Pricing
What does “competitive pricing” mean for an online store?
Competitive pricing means setting your product prices based on what similar stores charge, while still protecting your margins. It also includes how you present price (sale badges, regular price shown, and clear formatting) so shoppers can quickly understand value.
How do loss leaders work in e-commerce pricing?
A loss leader is a product you price very low (sometimes near cost) to attract shoppers. The goal is to increase total cart value by selling higher-margin add-ons, accessories, or related products with the same purchase.
Should I show the regular retail price next to my sale price?
Yes, showing the regular retail price can boost conversions by making the savings clear. Use it carefully and honestly, and avoid discounting everything all the time since it can hurt trust and profit.
What are simple ways to make pricing and discounts more obvious?
Use visual cues that are hard to miss, like “Sale” labels, price color changes, and clear placement near the product title. Don’t make shoppers hunt for the final price or wonder what the item costs.
How can I check competitor pricing without guessing?
Start by listing your direct competitors, then track their prices and promos using tools like Price2Spy or Prisync (or manual checks on their sites). Pair what you find with customer feedback (surveys or quick polls) to confirm what your buyers think is fair.
