How to Set Competitive Prices for Your Online Products

Set Competitive Prices is one of the most powerful tools you have.
If your price is too high, customers will leave.
If your price is too low, you’ll lose profit.
The trick is to find a sweet spot where you make good profit and customers feel they’re getting great value.

Here’s how to set perfect prices for your e-commerce products!

1. Calculate Your Total Cost

Before anything, know your total cost:

• Product cost (purchase price or manufacturing cost)
• Shipping cost
• Packaging cost
• Platform fees (if selling on marketplaces)
• Marketing cost (ads, promotions)

Example:

• Product purchase = Rs. 300
• Packaging = Rs. 50
• Delivery to courier = Rs. 50
• Marketing/ad cost per sale = Rs. 100
  Total cost = Rs. 500

2. Add Your Desired Profit Margin

After knowing your cost, add a margin based on your niche:

• Fashion & Jewelry: 2x to 3x
• Skincare & Beauty: 2.5x to 4x
• Home Decor: 2x to 3x
• Electronics Accessories: 1.5x to 2x (more competitive)

Example:
If your cost is Rs. 500, you can sell at Rs. 1000 to Rs. 1200 easily, depending on product demand and competition.

3. Research Competitor Pricing

Always check what similar products are selling for:

• Search on Daraz, Instagram, local stores
• Analyze average price ranges
• Offer either better value or better quality at a close price

Tip: You don’t always have to be the cheapest. You can win by offering better service, packaging, or faster delivery.

4. Psychological Pricing

Use price numbers that feel smaller to buyers:

• Rs. 999 instead of Rs. 1000
• Rs. 1499 instead of Rs. 1500

It sounds silly — but it works!
Customers psychologically feel they are spending less.

5. Offer Bundle Deals

Increase your average order value by offering bundles:

• Buy 2, Get 10% Off
• Bundle of 3 products at a discounted rate
• Free shipping above Rs. 2500

Example: 1 makeup brush set = Rs. 1200, but a bundle of brush + sponge + mirror = Rs. 2500.

6. Factor in Seasonal Pricing

Adjust your pricing for special occasions:

• Ramadan & Eid sales
• 11.11, 12.12, Black Friday deals
• Independence Day promotions

Offering limited-time discounts creates urgency and boosts sales.

Final Words

Smart pricing = Higher sales + Good profits.
It’s not about being the cheapest — it’s about offering the best value at a fair price!

And remember:
AAQAF can assist you with product pricing strategies, promotional campaigns, and bundle creation ideas to maximize your store’s profitability — all in a very affordable way.