In 2019, the average rate of shopping cart abandonment on eCommerce websites was almost 4 in 5. Although marginally lower this year, at 3 in 4, it remains a major challenge for Australian eCommerce businesses too. Indeed shopping cart abandonment is the bane of the industry.
Amongst the many reasons to explain the occurrence, price stands as one of the major issues. Whether it’s a convenient excuse or genuine is immaterial. Fact is, to avoid or mitigate the problem of abandoned carts, an effective pricing strategy must be in place. In this post, we’ve listed factors to consider in your pricing strategy.
1. Offer choices
Knowing you’ve made the right choice, especially with regards to buying the right priced item, creates a feel-good factor. By placing items in a similar category with different prices side by side, you’ll empower customers to make the right choice. It’s important to note, however, it’s not always the lower or lowest-priced item that will be chosen. Shoppers will make their decision using the prices displayed as a guide.
2. Don’t confuse customers
It’s good to have choices. But sometimes having too many can confuse leading to a syndrome widely known as analysis paralysis. Whilst it is not a numbers game, that is, the ideal number of choices, the fewer there are, the more likely having choices will be an enabler than a barrier. For a start, avoid a wide disparity between the highest and lowest price choices. This might leave them wondering about the ‘compromises’ between the latter and former. Next highlight the major differences in features between the choices.
3. Know your sales price
Is there a huge difference between $4.99 and $5 for the same item? Apparently, there seems to be. The former can be expressed as “I bought it for less than $5 bucks!” In the early days of eCommerce, this pricing psychology probably worked as intended. But in the age of the digitally connected and savvy consumer, its effectiveness has been blunted somewhat. Test, and re-test to determine the sweet spot.
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