Launching a New Product in Your eCommerce Business – Part 2: Best Prices or More Choices
GUEST POST BY MICHELLE DEERY, HEROIC SEARCH
Launching a new product in eCommerce requires a lot of labor. Your eCommerce business must find out what its customers want, develop a creative marketing plan, test the market, and most importantly have an effective strategy for when you finally launch your product.
All vitally important factors that contribute to a successful launch – which we touched on in detail in part 1, if you want to check that out. But, for this article we will be focusing on what needs to be done after the launch, to make sure that you continue selling your product.
There are many important decisions that you will need to make, and some of the foremost will be in regard to products and pricing. By implementing well-thought-out strategies, you can help ensure that your store gains customers and realizes profits that are long-lasting.
We will discuss whether consumers prefer more choices or best prices after the launch, and the various ways to improve their shopping experience to further increase your sales.
Offering More Choices
One consideration that you will be faced with after you’ve successfully launched your product is the number of products that you should sell along with it in your eCommerce store. While it may seem as though offering the maximum amount of items is the best way to increase sales, this is not always the case. In fact, research has shown that too many items can actually cause potential customers to be turned off because of product overload, and this could send them shopping elsewhere. There are a few things to consider when placing products in your eCommerce site that will help to ensure that you are gaining and retaining customers, rather than losing them:
When there is no product structure on a shopping page and items are placed at random, this can lead to a confusing shopping experience. You may have visited eCommerce websites where there was a seemingly endless list of products to choose from, and chances are it took you a while just to find the items that you were originally searching for, if you found them at all. To alleviate this problem with your eCommerce store, separate products into relevant categories and place links to each of the categories at the top of the page so that users can easily navigate the site. Effective categorization and searchability will help your store retain customers for your product after the initial hype has died down. Top tip: make sure your newly launched product remains the primary focus of your store.
A tactic that has been proven to help sellers determine the proper number of products to place on their site is by starting with a limited number and then slowly increasing the items by providing more choice options for your consumers to choose from. Consider separating your products into a few categories and then list a dozen items in each after you’ve launched your product. If you find that sales keep growing, then add a few additional items and continue to utilize this method so long as sales goals are being met and revenues are increasing. The key to finding out what works best for your store is through testing.
It may seem counterintuitive, but reducing the number of products in your eCommerce store after you have launched your new product can help improve sales. As mentioned, an overload of products can confuse shoppers and, in turn, they may seek alternative stores. If sales are hurting, choose a group of items and eliminate them from your site that take the shine away from your new product. This will also reduce manufacturing costs. The task of removing items can be easily accomplished when using eCommerce platforms that integrate with cloud-based software that have an inventory management system.
Offering the Best Prices
When you have decided what works best for the continued growth of your new product in terms of the selection of choices that you have on offer for your consumers, the next step is to have a look at your prices. A lot of your cash-strapped customers will always prefer low prices, but slashing your prices is not always the best way to distinguish your store from its competitors. If you want to further increase your conversion rates and sales through the prices of your products and services, here are two options for you to consider:
Check the Competition
It is no secret that low prices are a great way to entice buyers to shop at your eCommerce store, but this alone will not guarantee an increase in customers. When you are setting prices for your product, it is vital to research the competition to see where their price levels are set for similar items. If you find that competitor’s prices are far below those of your eCommerce store, then adjusting prices may be necessary to lure customers to your store.
However, reducing prices will only be effective if shoppers enjoy their experience once they make the switch to your store. If these new customers have difficulties finding the products they are searching for, then chances are they will be willing to pay a bit of additional money for the same items at another online store, where they feel more comfortable shopping.
Reduce Shipping Costs
An alternative to lowering the price on your product is to decrease or eliminate certain shipping costs. It is well-known that shipping can be very expensive, and this is especially true for large items. When you are trying to beat the competition to make sure your newly launched product stays ahead, you may want to consider offering discounted shipping rates or even free shipping, if that is an option for your business. This will not only entice buyers to purchase more products, it will also help to attract new customers who have never even heard of your product before.
In the End
Perhaps the best way to ensure that your eCommerce business finds continued success with its new product is by determining the perfect balance between the number of products that are offered and the price of those goods. When you are trying to increase the customer base of your product, consider implementing strategies that will enhance the experience of your buyers.
Keep in mind that the number of items listed in your store can drastically affect the shopper’s experience, and offering too many items can actually work against your revenue goals because of the confusion and overwhelm it can cause. Therefore, always separate products into categories, so that users can easily navigate the listing on the site.
Furthermore, it is wise to start with a limited number of items and make adjustments as the store begins to grow and product sales increase. If you find that certain items are not selling or you believe that there is an overabundance, then eliminate some of the inventory, as this will increase the likelihood of attracting and retaining customers for your product.
In addition, when pricing items you will want to make sure that your prices are competitive, while at the same time leaving adequate room for profits. Making sure your product keeps selling is important, but you don’t want to lose money. You may also consider lowering shipping fees, or offering free shipping, as this will help entice buyers to shop at your store. Keep these tips in mind when planning the strategy of what to do after you’ve successfully launched your new product, and you should be able to find the perfect balance between price and inventory levels.