Value of products in E-Commerce

One of the biggest issues small online retailers face is the price of the products they are selling and the balance between making sales and making a profit.

If you are selling products of low value, the cost of aquisition and the time to administer each sale will require you to sell a large volume. This may require higher advertising spending, which in turn requires further investment.

On the other hand, if your product range is priced high, you don;t have to sell as much to make profits, but you will still come across people who do not feel comfortable entering their payment details for high value, despite the fact that the value is irrelevant in terms of security.

My own experience shows the need to expand to offer a larger range of products (as long as the shop remains focussed). This approach attracts a larger number of search visitors.

The biggest advantage however, as long as your design allows, is the potential up-selling and cross-selling opportunities.

Posted in: e-commerce

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