The world of online sales is characterized by complexity andhigh competitiveness.
Today it is not a given to be successful online because there are so many factors to consider when deciding to expand your online business through marketplaces, including logistics, a product inventory that is adequate, and setting the right selling price.
However, not presiding over marketplaces means giving up a large slice of the market, which instead can be anexcellent opportunity to expand business.
One of the factors that you should pay close attention to, then, is setting the right selling price for your products.
With increasingly fierce competition and constant pricing pressure, finding the right balance between supply and demand to sell on marketplaces becomes crucial to maintaining adequate profit margins.
Establish the right selling price to increase competitiveness
Selling on marketplaces is as complex as it is profitable, because if you do not take into account all the necessary elements, you risk jeopardizing your margins.
Marketplaces, in fact, take commissions on sales. You also have to consider shipping and logistics costs (in case you join specific programs such as Amazon’s FBA, eBay’s Guaranteed Delivery and Zalando’s ZFS).
Yocabe: give your online sales a boost and maximize margins with smart pricing
Yocabé is a service provider specializing in assisting brands in managing sales on major online marketplaces. Its mission is clear: to support brands in maximizing sales without compromising profit margins.
This is made possible by an advanced technological approach that leverages smart pricing algorithms to determine the optimal price at all times.
Yocabé allows you to choose product assortment based on ROI (Return On Investment) and dynamically manage prices to maximize margins.
Data-driven approach to managing your marketplace sales
Direct channel integration with Yocabé’s technology enables our dedicated team of specialists to ensure a data-driven approach to optimizing operations management and maximizing performance.
Our SmartPricing algorithms calculate the best price at which to win the sale, at any given time, taking into account competitors’ prices and protecting your margins.
The Importance of Smart Pricing
The concept of smart pricing is about finding the perfect balance point between supply and demand. Yocabé’s algorithms analyze a number of factors in real time, including:
- Market demand: By monitoring purchasing trends and peak demand, Yocabe can suggest the best time to raise or lower prices.
- Competition: By analyzing competitors’ prices, algorithms can adjust prices dynamically to maintain competitiveness without eroding profit margins.
- Operating costs: By considering the costs of production, logistics and other operational factors, Yocabé ensures that the proposed prices always cover these costs, guaranteeing an adequate profit margin.
Through historical data and predictive models, Yocabé can anticipate market trends, enabling brands to stay one step ahead of the competition.
Marginalities
Margin analysis in marketplaces is essential to sales strategy, often determining whether or not a brand chooses to enter these online contexts.
The decision is influenced by several factors: competition, type of product, country of destination, and handling of returns.
Pricing flexibility is vital, allowing dynamic changes to achieve the desired margin.
The sales strategy must start with clear objectives, and once a target margin is established, parameters can be optimized to achieve the desired result.
