5 Strategies How to Set a Price for a Product in Shopee

If you’re a seller of an online marketplace, finding the right answer of how to set a price for a product so it can compete with other merchants is going to be a big help to win the market’s competition. Lucky for you, we’re going to discuss how to do the pricing strategy. You can still win the competition while gaining profit in the process. So don’t miss it out!

What Is a Pricing Strategy?

As one of the most accessed online marketplace per 2021 with more or less 51 Millions active users, Shopee Malaysia surely became a crowded place for both buyers and sellers. Just like how it would naturally be, the more sellers with the same products, the crazier its competition becomes. Thus, we can easily spot price wars almost everywhere.

However, competing on who can offer lower prices has never been the right way to sell your products. Thus, you need the Pricing Strategy. So what exactly is this pricing strategy about? Essentially, pricing strategy pertains to the set of methods or rules which your business can use to set appropriate prices for your online marketplace’s products such as those which are being uploaded through Lazada or Shopee.

Regardless of the fact that the area of focus for both pricing and marketing is different, two of them are also part of important elements that affect one’s buying decisions. If you as an online seller fail to set the right prices for once, there’s two probability that going to happen like:

• A bloody high price chase the potential buyer away;
• An extremely low price would barely benefits your business regardless of its high conversation;

There are multiple pricing strategies which you can incorporate into your business. However, for both Lazada and Shopee sellers, the most applicable and ROI-inductive pricing strategy is the competition based pricing strategy.

You Might Also Want to Read: 6 Most Useful Tips on How to Increase Sales in Shopee 

How to Set Prices in Shopee? 

Important note that you have to jot down is, whenever you’re formulating a price for your products, it should be resulting this following outcome:

• Optimizing your products in term of visibility, click through, and rate of conversion;
• Get you more sales and profit;
• Able to beat your competitors.

Considering that, your pricing should consist:

• Cost of goods sold which pertains your expenses in purchasing products / materials for production;
• Production time, tracking on how much time being spend in order to get the product ready
• Shipping expenses in order to get your products safely to warehouse;
• Packaging expenses that you spent to make sure the product is well protected;
• Operational and advertising cost, amount of cost you spend for both hiring competent human resources and amount spent to reach much more audiens to discover your goods;
• Short term costs like loan repayment if there’s any.

You Might Also Want to Read: The Pros and Cons of Using An Online Marketplace in Malaysia

When you deduct all the cost from your price, you’ll gain the profit margin which is the profit that you get as revenue. For small business, initially there’s 5 common pricing strategies such as:

Cost-Plus Pricing

Also known as mark up pricing and is the easiest way to determine the price of a product. To use this kind of pricing, you only need to add a certain fixed percentage on top of the costs of making the products, then sell them off.

Value Based Pricing

This refers to setting a price based on how much the customer believes a product or service is worth. It’s some kind of outward approach that makes your target market wants and you need them to come into the play.

Competitive Pricing

Competitive pricing referring to using competitors’ pricing data as a benchmark and consciously pricing your product below of theirs. How ever this kind of strategy wasn’t super recommended, unless you know the bottom line of this application which is: your profit.

Discount Pricing

Who doesn’t love sales? Everyone is willing to make a long line just for spending on some cloth during midnight new year sale. Thus, discounting is a top pricing method for retailers regardless it’s sector focuses. 

On Shopee, you can learn on how to add multiple price in Shopee as you put on different varieties of products and setting up different amount of discounts for each variety.

Keystone Pricing

Keystone Pricing is a product pricing strategy most used by retailers as an easy use of thumb. To use this method, first determine a retail price by simply doubling the wholesale cost they paid for a product to set a healthy profit margin.

How Often Should You Change Your Prices?

Talking about the frequency of changing prices, there’s some event that could be a perfect moment to pull off a special price / do the price changing. Event mentioned is:

When Launching a Product

Because you need to gradually build up a presence in your product’s algorithm. You can set upto 50% off on the price point which will enable you to accumulate sufficient reviews and increase your credibility toward potential buyers.

However, do note that we do not encourage misleading discount Shopee. What is called a misleading discount is when you increase the product price moment before a big promotion to make your discount look grand. Shopee also has strict rules regarding this kind of price manipulation.

Had any user ever been caught cheating and manipulating prices in order to fabricate lies / fake promotions, Shopee will permanently delete your listing from the Apps.

During Campaign

Since you can do a daily campaign, it won’t be wise to let out a big discount like what we did previously. But you still can offer a little discount like maybe up to 10 or 15 percent, whichever range of price that will still give you profit out of it.

When Competitor Change Their Price

Although we don’t do price wars, we also need to always keep an eye on the main competitor’s price and monitor its change. By doing this, we can calculate the next step we’re going to take in order to keep serving something new.

Anyways, talking about price changes, do you know how to change price in Shopee? Initially, there’s a way to do so, however it was never encouraged by the Shopee themselves. Through their Shopee Seller Center, it said that changing prices in Shopee may lead the platform to identify you as a misleading discount or in other words, sussing your account.

Although changing prices is not encouraged, you still can have another way to do pricing such as giving out discount vouchers instead of looking about how to lower price in Shopee, for example.

Benefits of Setting Up Pricing in Shopee

We all agreed that the pricing has a heavy impact on the buying decision. The only way to survive the wild competitions in big e-commerce like Shopee, is to have smart ways of pricing.

You can upload varieties of products and learn about how to set price range in Shopee. Activate the SSL Shopee so that the customer will get the free shipping voucher while you can ship the product with no hassle.

Thinking of a more easy way to manage your online store? Easily find all the systems that you need to help your online market grow faster with Ginee’s platform. You can control every account that you have on various marketplace from one dashboard. Keep connected to all of your customers with the Ginee Chat program to make the best service out of your store!

Without further talk,we invite you to just come and experience Ginee by yourself. Register now and get the 7 days trial for free!

Join Ginee Malaysia!

Dropshipping tricks are easy if you know how to fully handle your online stores registered in Shopee Malaysia. That way, Ginee Malaysia can easily help you! With Ginee, you can handle all stores in a single dashboard, upload products, update stocks, handle promotions, orders, chats, ads campaigns, and many more. Register to Ginee Malaysia for free forever!