Ecommerce Pricing Strategies: 10 Winning Models

You can pour hours into building the perfect online store, but if your ecommerce pricing strategy doesn’t click with your customers and align with your category, everything else will fall flat.

The truth is, pricing isn’t just setting a number arbitrarily. Behind the scenes will require an adequate understanding of psychology, competition, and profitability, all wrapped into one. 

Especially in today’s crowded digital market, having the correct ecommerce pricing strategy is the edge that decides who wins and who fades out. 

That’s why we bring the top 10 ecommerce pricing strategies that must dictate your winning strategy. Keep reading to dive deep into each and understand which ones resonate with your business.

What is Ecommerce Pricing Strategy?

An ecommerce pricing strategy is the structured approach an online business takes to set and optimize product prices. The concept goes beyond simply attaching a number to an item you’re selling.

It requires significant market research, competitor analysis, and profit margin calculation to find the correct spot thats affordability for customers and profitable for the business. 

A strong pricing strategy is flexible and thus adapts to changing factors such as demand shifts, seasonal trends, supply chain costs, and promotional campaigns, ensuring that prices remain competitive while supporting long-term growth.

Effective ecommerce pricing strategies are responsible for making sure,

• Your final price covers all the costs like manufacturing, storing, etc., while maintaining healthy margins.
  
• Your prices are in tandem with brand positioning.
  
• You are found by customers even in crowded marketplaces.
  
• Customers see your products as worth the price.
  
• You have the flexibility to adapt to shifts in demand, competition, and market trends
  

The right mix of strategies depends on your goals, product category, and target audience.

The 7 C’s of Pricing

The 7 C’s of pricing give you a simple checklist to make sure you’re being strategic, not just reactive. Before we get lost in the details of each “C,” let’s zoom out for a second. 

Think of it as the seven lenses through which your brand gets judged, sometimes consciously, sometimes subconsciously. They’re the pillars that decide whether people trust you, remember you, and ultimately buy from you.

Why are these 7 C’s so important? 

Because in ecommerce today, your competitors can copy your product, undercut your prices, or even replicate your ads. What they can’t copy is how you build credibility, consistency, clarity, and community around your brand. 

The 7Cs are designed to strengthen these aspects.

1. Cost

Your price has to cover production, shipping, marketing, and platform fees while leaving room for profit. It is the foundation. Always calculate your “all-in cost per unit” so you never set a price below your survival point.

Say, it costs you $12 to make, ship, and market a product, selling it at $11 isn’t a “deal” because you’ll be at a loss by a small margin.

2. Customers

Price should reflect the perceived value of the product by the customers, which goes beyond what it costs you to produce or source it. 

For example, a $20 yoga mat can be priced at $40 if your brand emphasizes eco-friendly materials, thickness, or any such USP.

3. Competition

Although you want to remain competitive, you must avoid racing to the bottom at all costs. Amazon sellers often use competitive pricing just to stay visible in search results, but by maintaining a threshold, they make sure they don’t ignite a price war. 

Smarter sellers maintain a pricing threshold and use A+ content, or better reviews, to justify being slightly higher. The best way is to compete on value differentiation, not just competitor pricing. 

A skincare brand on Amazon can price slightly above rivals if its reviews and A+ content prove better quality.

4. Channel

Where you sell changes everything. Pricing on Amazon, Shopify, or wholesale B2B will look different because each channel has its own fees, shopper behavior, and expectations.

5. Compliance

Pricing must play by the rules, both legal ones and platform-specific ones. No deceptive discounting or price gouging if you want to stay in business.

Your t-shirt might sell for $25 on Shopify and $30 on Amazon (to cover platform fees, of course).

6. Communication

The way you present deals, bundles, or discounts shapes how customers perceive value. Communication is also about using bundles, urgency (like “limited-time offer”), and anchoring prices against higher-value items. So, frame the price so customers instantly see the value and pay for it.

A $50 backpack looks like a steal when shown next to a “premium” $120 version on the same page. Here’s another scenario. At the ecommerce marketplace level, it may catch more attention when your premium product is discovered among other products, especially at a discounted price.

7. Conditions

The broader market always matters: the economy, seasons, and shifting demand. During inflation, sellers often need to justify price increases by highlighting quality or bundling more value into each order. Build flexibility into your pricing strategy for ecommerce so you can adapt quickly to market shifts.

To make higher profit margin a toy seller can raise prices in Q4 when demand peaks, then they can discount leftovers in January for clearance. 

In ecommerce, combining the 7 C’s of pricing with the right ecommerce pricing strategies helps you set prices that are profitable, competitive, and customer-friendly.

Top 10 Ecommerce Pricing Strategies

Now let’s take a look at the top 10 ecommerce pricing strategies that consider all of these C-s to give you the pricing your products may need.

Strategy 1: Competitive Pricing 

When it comes to ecommerce businesses, prices are signals. Thus, competitive pricing is a strategy that keeps the market as the focal point as well as competitors, then sets the ecommerce pricing strategy in a way that keeps your product relevant without compromising value. 

To simplify it further, this strategy helps you realign your pricing to attract customers solely based on what rivals are charging. But unlike other ecommerce pricing strategies, it does not involve lowering prices to the point where your brand’s value or profitability is compromised.

What is Competitive Pricing in actuality?

This ecommerce pricing strategy shows up in a few ways:

• Price Matching: You align your price with competitors to ensure you’re in the competition.
  
• Price Leadership: You intentionally set lower prices to become the go-to option in your category. Something the customers will naturally reach out for.
  
• Strategic Premiuming: Sometimes staying slightly above competitors’ pricing signals quality or exclusivity, when supplemented with proper brand positioning.

Take Fashion Nova as an example in this case. Most of their items are priced under $60, which is half of what the contemporaries (such as Oh Polly) are offering. By pricing close to competitors like Forever 21, they maintain their identity as a trend-conscious brand, with a perfect display of market-aware competitive pricing.

Pros and Cons of Competitive Ecommerce Pricing Strategies

Here are the pros and cons of competitive pricing:

Pros	Cons
Easy to implement and low-risk	Relies heavily on competitors’ moves and ignores the perceived value of your products, leaving profit on the table
If optimized constantly, it prevents lost sales.	Attracts price-conscious customers and risk of margin erosion if you enter a “race to the bottom”
When automated, it allows real-time adjustments to stay competitive as markets shift, relieving you from constant monitoring.	Can dilute brand differentiation if price becomes the only story you tell

Who Should Use Competitive Ecommerce Pricing Strategies?

Competitive pricing works best for businesses that sell commodities with minimal price differentiation. It works best for highly competitive markets where consumers constantly compare prices before buying. 

Like, an online electronics seller pricing a standard USB cable only a few cents below competitors, because customers see little difference between brands and mostly buy the cheapest option.

Strategy 2: Value-Based Pricing

When it comes to ecommerce pricing strategies, most brands obsess over costs or competitors, but they forget, customers don’t just buy your product, they buy the story you’re telling, the problem you’re solving, and the identity you’re creating around it.

Unlike a traditional pricing strategy for ecommerce business models that anchors around margins or matching rival prices, value-based pricing asks a bigger question: “What is this worth in the customer’s eyes?”

It’s not about being the cheapest or even the most available; it’s about being the brand they’re willing to pay for. Think less “race to the bottom” and more “charging what your product truly deserves.”

What Value-Based Pricing Really Looks Like

This ecommerce pricing strategy shows up in ways that go far beyond numbers on a product page:

Perceived Value Premiuming

Customers happily pay more when your brand represents quality, exclusivity, or a lifestyle they connect with. Apple is the classic example. The iPhone isn’t just a phone; it’s a status symbol.

Benefit-Driven Pricing

Your price reflects the transformation, not the ingredients. Skincare brands like Drunk Elephant don’t sell “cream in a jar”; they sell confidence in your skin.

Customer Segment Pricing 

Smart B2B ecommerce pricing strategies use this well, offering different tiers based on customer needs and perceived value. Adobe’s student vs. professional tiers? A perfect example.

Allbirds sneakers cost more than their competitors. Yet people line up for them. Why? Because they’ve created their ecommerce product pricing strategy around sustainability and values that resonate with modern-day eco-conscious customers. 

People who reach out for AllBirds sneakers are buying a sustainable lifestyle choice. That’s how value-based pricing looks like in action. 

Pros and Cons of Value-based Ecommerce Pricing Strategies

Like every ecommerce pricing play, this one comes with wins and trade-offs.

Pros	Cons
You can really maximize margins by charging based on what customers believe your product is worth.	You need genuine customer insights, storytelling, and ongoing testing to maintain the brand image.
It builds loyalty because shoppers feel like they’re buying into meaning, a story, or an experience.	It's tougher for already established brands, as it requires rebranding. Less-established brands may find it hard to pull off this ecommerce pricing strategy due to a lack of a brand anchor.
It saves you from endless price wars.	The strategy backfires if you misread customers’ value points.
It’s a sweet spot for premium or unique brands that want to stand out from the crowd.	Rolling it out globally can be difficult because customer perceptions of value differ in every market.

Who Should Use Value Based Pricing

This pricing strategy ecommerce sellers should consider if they’re marketing your brand purely based on a USP or a strong brand story. Brands operating in niches where buyers care about identity, status, or brand value are best suited for it.

For first-time ecommerce sellers, value-based pricing might not be the easiest starting point. But as your brand grows, value-based pricing often becomes one of the best pricing strategies for first-time ecommerce sellers looking to escape discounting and create a loyal customer base.

Strategy 3: Price Skimming

When it comes to ecommerce pricing strategies, not all approaches are built the same. Some are about blending in with the market. Others are about standing out. 

Price skimming is very much in the latter camp.

Price skimming is an ecommerce pricing strategy where an online store launches a product at a high price with the aim of gaining maximum profit from early adopters; then gradually lowers the price over time to attract price-sensitive customers.

Let’s take you through how it works. 

Say a brand launches a product at a premium price, targeting early adopters. These are the customers who are willing to pay extra, be it for novelty, exclusivity, or their unique selling points.

But over time, the price gradually lowers as the demand increases. This may sound contradictory to the demand surge increase, but this price skimming strategy unlocks new layers of target customers. 

First, it targets the mid-market shoppers who were waiting for the drop, and eventually it caters to the more price-sensitive customers at the bottom of the curve.

It’s a way to maximize revenue at every stage of a product’s lifecycle without leaving money on the table.

How does Price Skimming work?

This pricing strategy for ecommerce business can take different shapes:

• Early Premiuming: Kick things off at a higher price point to make the most of early buzz. Trendsetters, loyal fans, and early adopters are usually willing to pay extra for being the first.

• Tiered Reductions: As the hype starts to level out, you gradually lower the price in stages. This opens the door to a bigger audience, while still letting you hold onto solid margins.

• Clearance Phase: When the novelty has worn off and competition catches up, bring the price closer to the market average. This helps clear inventory and capture late buyers without leaving money on the table.

The best practitioner of this ecommerce pricing strategy is Apple. Apple’s iPhone launches at a sky-high price, and loyalists rush to buy. Months later, when the excitement of new features wanes or when other brands include the same features, the older models are sold at a lower rate and suddenly become accessible to the masses. That’s how price skimming works..

Pros and Cons of Price Skimming

Like most pricing strategies for ecommerce, this one has its strong sides and its challenges.

Pros	Cons
Let's grab maximum revenue early on.	Limits your first wave of buyers mostly to premium customers, as only a few are serious enough to jump in right away.
Signals exclusivity and innovation. It works brilliantly for brands with hype or loyal fans.	Competitors swoop in with cheaper alternatives once the buzz fades.
Speeds up recovery of R&D, marketing, and launch costs.	Risks of losing price-sensitive shoppers.
Helps you create scarcity-driven buzz during the launch, which works great for building momentum.	Sellers need to create a strong brand reputation to justify the high-end pricing.

Who Should Use Price Skimming?

Price skimming is one of the best pricing strategies for first-time ecommerce sellers, but only if your product has a clear edge over the competitors. It works exceptionally in the tech market where high-end products drive demand due to novelty. Fashion and lifestyle brands follow this, as well as customers look for exclusivity.

It is also well adapted as one of the B2B ecommerce pricing strategies, especially for SaaS tools or specialized products.

On the contrary, if your brand is competing in commodity categories, you’re better off leaning into dynamic pricing strategies for ecommerce.

Strategy 4: Penetration Pricing

If competitive pricing is about keeping up with the market trends, penetration pricing is about breaking into the race at full speed, keeping market trends in mind. 

So, to practice penetration pricing, you’ll have to price your product lower than the competition, so customers feel like they’ve just discovered the best deal in the market, and that is how you make them try out your product. 

It’s one of the boldest pricing strategies for ecommerce, because it prioritizes market share now and profits later.

Penetration pricing can be a strong opening move for first-time founders wondering about the best pricing strategies for first-time ecommerce sellers. It is even more useful when you’re in a crowded space where customers are constantly comparing options.

What Penetration Pricing Really Looks Like

Penetration pricing isn’t just “set it low and hope.” Like other smart ecommerce pricing strategies, penetration pricing comes in a few flavors:

• Introductory Discounts
  Launch your product at an irresistible price to drive trial and start building loyalty.
  
• Bundles that Win Volume
  Package products together for less, creating a deal that feels too good to scroll past. Especially helpful if you’re an established brand launching new products.
  

Think about Dollar Shave Club’s launch. They sold the razors at a super cheap rate that completely undercut industry leaders like Gillette. That was a calculated ecommerce product pricing strategy that got the brand a loyal subscription base.

Pros and Cons of Penetration Pricing

Like every pricing strategy for ecommerce businesses, this one has real advantages but equal tradeoffs.

Pros	Cons
Gets your brand noticed fast and encourages people to try your product out.	Margins remain razor-thin (or even negative) initially, so you should be willing to take the risk.
Low entry prices remove friction for first-time buyers who might hesitate otherwise.	Attracts bargain-hunters. They may vanish once prices go up.
Can create buzz and word-of-mouth, as customers may often talk about a smart deal.	Risks of igniting price wars.
Pairs well with subscription or repeat-purchase models as the early discount helps hook them into becoming a long-term customer.	Needs serious financial backup to keep the business afloat, at least until profit kicks in.

Who Should Use Penetration Pricing?

Penetration pricing is not for every brand, but it can be the best pricing strategy for ecommerce stores that are new entrants trying to break into competitive categories like beauty, fashion, or gadgets, or existing brands offering a new variety of products.

Subscription-driven businesses can find it useful when long-term retention is more important than early discounts. If you’re selling to businesses, this can be a B2B ecommerce pricing strategy where bulk buyers need a strong reason to switch suppliers

Tip: Pair it with dynamic pricing strategies for ecommerce, adjust your prices as your brand grows and the market shifts, and you’ll move from a newcomer offering low prices to a market leader.

Strategy 5: Bundle Pricing

When it comes to ecommerce pricing strategies, bundle pricing is a way to increase your Average order Value. Instead of selling products individually, you package them together and sell at a single slightly discounted price on the cumulative cost.

Customers walk away believing they’ve unlocked a good deal, while you boost average order value (AOV), give your inventory momentum, and make your pricing strategy for your ecommerce business work harder for you.

That’s how customers spend more, discover products they didn’t know they wanted, and you maintain control of your brand’s value.

What Bundle Pricing Really Means

Depending on your goals, bundle pricing can take different forms:

• Pure Bundling: Products can only be bought together like an exclusive gift sets or curated boxes.
  
• Mixed Bundling: Customers can buy items as part of a bundle, but the choice is theirs.
  
• Cross-Category Bundling: Pairing products from different lines yet somehow related, and elevates the experience (like headphones with a laptop).
  
• Dynamic Bundling: Smart, dynamic pricing strategies for ecommerce that create bundles on the go, like Amazon’s “Frequently Bought Together”.
  

Take Amazon, for example. You’ve probably noticed the “Frequently Bought Together” section when shopping. Say you’re eyeing a DSLR camera, suddenly, a memory card and camera bag pop up right beneath it, neatly bundled at a slightly better price than if you bought them separately. 

To customers, it feels like Amazon just helped them find something essential, and at the same time, they walk away with a deal.

Pros and Cons of Bundle Pricing

Like every ecommerce product pricing strategy, bundling has two sides.

Pros	Cons
Increases average order value (AOV) by nudging customers to “buy more” in a single go.	If the bundle doesn’t feel thoughtfully curated, it can come across as random or forced.
Moves slow-selling products without cheapening your overall brand.	Heavy discounts on bundles can quietly eat away at margins.
Encourages product discovery.	Operational complexity rises as inventory planning and order fulfillment get tougher.
Strengthens brand storytelling when bundles are themed (e.g., “Back-to-School Kit” or “Self-Care Set”).	Premium products may lose some of their prestige due to bundling.

Who Should Use Bundle Pricing

Bundle pricing is one of the best pricing strategies for first-time ecommerce sellers because it quickly increases cart size and customer satisfaction without overcomplicating things. 

It also works wonders for brands with complementary products, seasonal items, or those looking to bring attention to new lines.

If you’re running a beauty store, a consumer electronics shop, or even building a subscription box, bundle pricing could be the best pricing strategy for an ecommerce store’s growth.

If you’re exploring pricing strategies for ecommerce and want something that feels both customer-centric and revenue-generating, bundle pricing belongs in your playbook.

Even if you’re selling non Amazon you can offer subscription pricing.

Strategy 6: Psychological Pricing

Unlike purely competitive approaches, where you set your ecommerce pricing strategy around what others are charging, psychological pricing taps into human behavior and perception.

People don’t just buy based on logic; they buy based on feeling, and a well-placed price tag like, $9.99 instead of $10, or “3 for $25” instead of $9 each, can make all the difference. For anyone figuring out the best pricing strategy for an ecommerce store, psychological pricing is a game-changer because it creates perceived value without eating into margins the way aggressive discounting often does.

What Psychological Pricing Really Means

This isn’t just about throwing “.99” at the end of every price. The strategy shows up in subtle but powerful ways:

• Charm Pricing ($9.99 magic): Those tiny cents matter. A product at $49.99 feels cheaper than $50, even though the difference is negligible. It’s one of the oldest but still most effective pricing strategies for ecommerce.
  
• Prestige Pricing: A flat $200 instead of $199.99 signals luxury and exclusivity.
  
• Anchoring: A tag anchoring display like “Was $120, Now $79” highlights the lower price range as a bargain price. Anchoring is a staple move in dynamic pricing strategies for ecommerce, and when framed properly, it acts as psychological pricing as well.
  
• Scarcity & Urgency: “Only 3 left at this price” or a ticking countdown timer on display bride a discounted price, it can be urgency-triggering or FOMO inducing, and it works across both B2C and B2B ecommerce pricing strategies. Ideal in situations where decision-makers need a push.
  

Walmart leans on charm pricing more often than you think. Be it $4.97 or $9.88, Walmart does it to make everyday essentials feel like a deal. It’s subtle, but it tells shoppers, “you’re getting value here.”

Apple takes the opposite route with psychological pricing. They use prestige pricing, sticking a pricetag of $999 or $1,299 on their high-end products, signaling that their products aren’t just tech accessories but they’re lifestyle-defining experiences.

Two totally different approaches to ecommerce product pricing, but both tap into the same thing: the psychology behind how we value what we buy.

Pros and Cons of Psychological Ecommerce Pricing Strategies

Pros	Cons
Shapes how customers see your brand without you needing to make massive price cuts.	If you rely on it too much, it can feel manipulative.
Boosts conversions by tapping into subconscious buying triggers.	Doesn’t always work for logical, data-driven purchases, especially in some B2B contexts.
Super flexible, so it fits across categories from lifestyle and retail to tech or even B2B.	Starts to lose its punch when every competitor uses the same tactics.
Easy to layer with other pricing strategies for ecommerce (like bundles, subscriptions, or dynamic pricing).	Needs ongoing testing because what works for one audience might flop for another.

Who Should Use Psychological Pricing?

This ecommerce pricing strategy really shines when emotions, identity, and perception drive the purchase. It’s also one of the easiest pricing strategies for first-time ecommerce sellers to try. You don’t need fancy algorithms or deep data models; you just need a solid understanding of your customers’ mindsets and what makes them tick.

And it’s not limited to consumer brands. 

In B2B ecommerce, psychological pricing works beautifully when perceived value matters more than raw cost. A classic example? SaaS pricing tiers: $99 for Basic, $299 for Pro, $799 for Enterprise. That “middle” package suddenly feels like the smart, balanced choice, all thanks to anchoring.

If competitive pricing is about staying relevant in the market, psychological pricing is about winning in the customer’s mind. For businesses, the sweet spot often comes from blending more than one ecommerce pricing strategy.

Strategy 7: Loss Leader Pricing

Loss leader pricing is one of those bold moves in ecommerce pricing strategies that makes you sell a product at little to no profit,  sometimes even at a loss, just to bring customers in. It is practiced while introducing either a new product line or a new brand in a saturated marketplace. And it is continued till the brand occupies a minute portion of the market share. 

Why? Because the real win isn’t the sale of that one item, it’s everything that comes after. Think of it as bait, but in a good way. 

You’re drawing shoppers in with a price they can’t refuse, knowing that once they’re inside your store (or on your Amazon listing), they’ll likely pick up other products that carry a much healthier margin. In other words, you’re not betting on one sale; you’re aiming to sell the entire cart.

What Loss Leader Pricing Really Looks Like

This strategy tends to show up in a few ways:

• Traffic Drivers: Put a popular product on the shelf at an astonishingly low price to grab eyeballs. It’s the ecommerce version of that $5 Black Friday TV!
  
• Bundle Builders: Use the low-priced item as the entry point, then pair it with add-ons or higher-margin products. Shoppers think they’re saving, but you’re actually boosting AOV.
  
• Market Entry Plays: New brand? New category? Loss leader pricing is one of the fastest ways to grab attention and get people to try you out.

Amazon’s Echo Dot is a great example of loss leader pricing. Amazon often prices it so low that they’re barely covering costs. But for Amazon, this sale isn’t about profit. It’s about helping people get Alexa into their homes, which then opens the door to more purchases and add-ons, such as Alexa+ subscriptions, eventually leading them to build an ecosystem.

Pros and Cons of Loss Leader Ecommerce Pricing Strategy

This strategy is all about using a few “can’t-miss” deals to bring people through the door (or onto your site). It works, but it’s not without its risks.

Pros	Cons
Instant customer magnet + low prices on select items pull in traffic fast.	Margins take a hit if you don’t offset with profitable products.
Perfect for cross-selling. Once shoppers are in, you can nudge them toward bigger baskets.	Attracts one-time bargain hunters who may never become loyal buyers.
Builds loyalty when customers feel they’re scoring unbeatable deals.	Risks cheapening your brand if you become known as “discount-first.”
Smart way to clear out slow or stagnant inventory while still driving engagement.	Can cross into risky legal territory if discounts look like predatory pricing.

Who Should Actually Use It

Loss leader pricing isn’t a one-size-fits-all move. It really shines for sellers who:

• Have a big catalog with other profitable products that make up for the loss.

• We are trying to break into a crowded market and need a way to grab attention fast.

• Want to ride the wave of big marketplaces like Amazon or Walmart, where massive traffic means you can turn deal-hunters into repeat buyers.

That said, if your store runs on razor-thin margins or you’ve only got a handful of products to sell, this strategy can backfire quickly. But when it’s done smartly, loss leader pricing can transform one low-margin product into a steady stream of loyal, long-term customers.

Strategy 8: Dynamic Pricing

The market never stands still. Shoppers compare, demand rises and falls, and seasons change fast. Thus, dynamic pricing comes in handy to cope with the market changes. It is probably one of the most flexible and responsive ecommerce pricing strategies out there.

Instead of slapping on a flat price tag and keeping it unchanged, dynamic pricing lets you adjust it in real time, based on demand, competition, inventory, and even customer behavior. Think of it as charging the right price at the right time.

What Dynamic Pricing Really Looks Like

Here’s what Dynamic Pricing would look like in actuality:

• Time-Based: Prices shift by time/day/season (like flash sales or holiday discounts).

• Demand-Based: Prices spike when demand is hot, drop when it cools (widely practiced by Amazon).

• Segmented Pricing: Different customers, different rates. Common in B2B ecommerce, as bulk buyers or long-term clients get better deals. 

• Peak Pricing: Surge pricing during peak times, almost like Uber during rush hour or bad weather, during seasonal demand, the prices rise as the demand days get closer.

Amazon changes product prices millions of times a day. Competitor moves, browsing history, stock levels, and account managers factor it all in and decide prices. 

Pros & Cons of Dynamic Pricing

Here are the pros and cons of Dynamic pricing.

Pros	Cons
Boosts revenue by capturing peak demand when people are willing to pay more.	Too many shifts can confuse or frustrate customers.
Can be automated with AI tools, saving tons of time and effort.	Needs good tech and data — small stores may struggle.
Clears old/slow-moving inventory fast through strategic markdowns.	Loyal shoppers may feel it’s “unfair” if they notice big swings.
Maximizes profits by aligning price with customer willingness to pay.	Can damage brand trust if it looks opportunistic or short-term focused.

Who Should Use Dynamic Pricing?

Dynamic pricing works especially well for:

• B2B sellers offering tailored quotes or volume discounts.
• Marketplaces and large ecommerce stores with fast-moving catalogs.
• Seasonal brands (fashion, travel, electronics) where demand shifts quickly.
• Sellers looking to grow without a race to the bottom on price.

Strategy 9: Promotional Pricing

When you’re running an ecommerce store, sometimes the best way to get attention is by tweaking the price for a limited time. That’s the heart of promotional pricing. It’s one of the most popular ecommerce pricing strategies because it evokes a sense of urgency in customers.

This ecommerce pricing strategy uses short-term discounts, or flash deals, to gain momentum. Think of it as creating a “window of opportunity” that sellers can win from, and customers don’t want to miss out on. 

For many sellers, this becomes the best pricing strategy for ecommerce store growth during big shopping seasons like Black Friday, Cyber Monday, or Prime Day. 

Our ppc ad experts often run promotional discounts on newly launched products from two weeks prior to Amazon Prime day sale to reach peak momentum during those couple of days.

What Promotional Pricing Really Means

Promotional pricing shows up in ecommerce in a lot of ways, such as:

• Flash Sales: Short, time-sensitive discounts that create urgency and boost conversions fast.
  
• BOGO (Buy One Get One): A classic way to increase average order value while moving inventory.
  
• Seasonal or Holiday Discounts: Lowering prices during peak shopping seasons to maximize volume. (contrary to price surge!)
  
• Coupon Codes & Vouchers: Targeted promotions for new or loyal customers to keep them coming back.

Shein’s entire playbook is built around constant promotional pricing. From “limited-time 70% off deals” to app-exclusive vouchers, they’ve made promotions part of their brand identity. This keeps shoppers hooked, constantly checking back for the next deal.

Pros and Cons of Promotional Ecommerce Pricing Strategies

Discounts are one of the oldest tricks in the ecommerce playbook, because they’re great at moving products and attracting new customers. So, weigh the pros and cons before moving forward with it.

Pros	Cons
Fantastic for customer acquisition, especially pulling in first-time buyers.	If overused, customers get “trained” to only shop when there’s a sale.
Quickly clears out slow-moving or excess inventory.	Profit margins take a hit if you haven’t planned your discounts carefully.
Creates urgency and FOMO, which spurs short-term sales spikes.	Risks hurting your brand image if your products feel like they’re always on sale.
Builds serious momentum during seasonal peaks like Black Friday, Diwali, or Christmas.	Not as effective in B2B ecommerce, where steady, reliable pricing often matters more than discounts.

Who Should Use Promotional Pricing in Ecommerce

Promotional pricing works best when you’re launching a fresh product and in a market where trends change overnight. 

Strategy 10: Cost-Plus Pricing

Sometimes, the simplest approach is the best starting point. Cost-plus pricing is all about. Among all the ecommerce pricing strategies, this one is the most straightforward. Take the cost of your product, add a markup, and you’ve got your selling price.

What Cost-Plus Pricing Really Means

With cost-plus pricing, your pricing strategy for ecommerce business looks something like this:

• Step 1: Add up all costs (product sourcing, shipping, packaging, platform fees, etc.).
  
• Step 2: Decide on a profit margin (say 30% or 50%).
  
• Step 3: Sell at that price, ensuring every sale generates profit.
  

It’s simple, transparent, and predictable. That’s why you’ll find this approach in many B2B ecommerce pricing strategies, where buyers expect consistency and sellers need to guarantee stable margins.

Smaller DTC brands often use cost-plus pricing in the early stages. For instance, a candle brand that spends $5 on materials and packaging might add a 50% markup and sell at $10. It’s not flashy, but it ensures sustainability.

Pros and Cons of Cost-Plus Pricing 

Strengths and its blind spots of Cost-Plus Pricing.

Pros	Cons
Super simple and easy to calculate.	Ignores what competitors are doing or how demand shifts, so you may end up too high or too low.
Guarantees a profit on every sale.	Doesn’t take into account how customers perceive your product’s value.
Transparent and consistent.	You might lose your chance to make profits if people are willing to pay more.
Provides a reliable baseline before experimenting with more advanced ecommerce pricing strategies.	Not a great fit in cutthroat categories where prices move fast and competition is fierce.

Who Should Use Cost-Plus Pricing in Ecommerce

This ecommerce pricing strategy works especially well for first-time ecommerce sellers who need clarity and predictability. You don’t have to worry about competitor moves or fluctuating demand, just cover your costs and add profit on top. 

For many sellers, this is the best pricing strategy for ecommerce store launches because it provides a clear baseline to test their product-market fit.

It is ideal for low-competition niches where prices aren’t changing constantly.

It acts as a baseline for sellers who need a simple ecommerce product pricing strategy before moving on to more advanced models like dynamic or competitive pricing, also making sure your business stays profitable.

Why You Need an Ecommerce Pricing Strategy

A well-thought-out pricing strategy for ecommerce business acts as the foundation for growth, ensuring you’re competitive, profitable, and aligned with your customers’ expectations.

1. Pricing Shapes Perception and Brand Value

A higher price can suggest premium quality, while a lower price can indicate that the product is perfect for mid-range buyers. Without a clear ecommerce product pricing strategy, you risk buyers being confused about what your brand actually stands for and who it caters to.

For example, a skincare brand that offers products an incredibly low price may seem cheap, thus ineffective in the eyes of buyers, while one that prices slightly higher with the correct branding can position itself as luxury or foreign lab tested. 

But as a seller, your price isn’t just about covering costs; it’s part of your identity building, which directly impacts your market share.

2. Protecting Margins and Profitability

Costs add up quickly between shipping, ads, platform fees, and fulfillment so having a fair margin is equally important for businesses. Strong ecommerce pricing strategies while selling ensure you’re not just making sales but earning money.

This is where models like cost-plus pricing help beginners secure stable profits, while more advanced sellers use dynamic pricing strategies for ecommerce to capture demand spikes without eroding margins. Without a strategy, it’s easy to get trapped in the “race to the bottom,” where lowering prices cuts into your survival.

3. Staying Competitive in Crowded Markets

Shoppers, while choosing products, compare prices across multiple sites. For sellers, it’s a double-edged sword as the right ecommerce pricing strategies make sure you don’t lose customers to rivals, by making sure you get to maintain brand value.

For example, competitive pricing helps sellers stand by market expectations, while promotional pricing allows you to win attention during peak shopping seasons. Both are examples of how a thoughtful pricing strategy for ecommerce store keeps you in the game.

4. Driving Customer Acquisition and Loyalty

The best pricing strategies for first-time ecommerce sellers often involve balancing discounts with long-term trust. Pricing is one of the first touchpoints that builds customer loyalty. If customers feel your prices are fair for the performance and not just cheap, they’ll come back.

5. Using Acquired Data for Smarter Growth

One of the biggest perks of selling online is the amount of data you can access. That’s why the smartest ecommerce pricing strategies aren’t static; they evolve with insights. 

Amazon is the perfect example here. Amazon algorithm changes prices to maximize conversions. Even smaller stores can tap into automation tools and run pricing experiments to draw insights and optimize pricing.

Final thoughts

At the end of the day, the right ecommerce pricing strategies shape how customers see your brand, fuel your ability to scale, and decide its future. 

By applying the 10 best strategies we discussed here, you’re not just setting prices; you’re creating a system that turns clicks into loyal customers, which will bring you steady profit. 

And if you’re ready to make that shift, SellerApp’s PPC agency solutions give you the data-backed insights to set prices that will actually set you up to win over the major marketplaces such as Amazon, Walmart, etc. Otherwise, you can also use our Competitor pricing reports and BuyBox pricing reports to give your Amazon/Walmart pricing strategy a data-backed head start. 

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