Price and E-Commerce Sites
Saturday, August 2nd, 2008The price that you pick for your site’s offerings will be intimately tied to your sites conversion rate. If the price you pick is too high, then even with excellent presentation, your conversion rate will begin to drop. On the other hand, if you price your offering too low people will assume your product is not of much value, and your conversion rate will also suffer.
The exception to the two guidelines mentioned above is websites that run as discount operations. These kinds of sites can be successful, however this is very difficult model for those just starting their first business. One reason for this is because these kinds of sites usually require the business owner to maintain his own inventory.
If you are drop shipping, and acting as a middle man, then chances are that it will be just about impossible for you to undercut your competitors and still make a profit. The problem with keeping an inventory when starting out is that it requires storage space, and that it comes with the risk of taking a loss if you are not able to move your inventory.





