Home Decor Ecommerce
Determining what to charge for certain items can be one of the more challenging aspects of running an ecommerce store. This variable gets even more crucial when your inventory is large, expensive objects that turn over slowly. Furniture and home decor ecommerce stores can fall victim to this trend. Without a competitive pricing and inventory strategy, it can be difficult for an ecommerce home store to run at its full potential. These are some strategies for pricing and selecting your furniture and home décor inventories.
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Cost-Based Pricing versus Value-Based Pricing
Before you determine specific prices for your inventory, you need to know how you want to approach pricing various items. Two of the most popular ways to decide on how to price an item are cost-based pricing and value-based pricing.
Cost-based pricing revolves around how expensive it was to produce an item. Mass-produced items often go by cost-based pricing because you want to be able to sell a lot of them. Therefore, it makes sense to determine an acceptable profit margin above costs that’s not significantly higher-priced than similar items from other sellers.
Value-based pricing doesn’t consider your initial costs so much as inherent value in the item. If a product has a high amount of value to a customer, even if it costs little money to produce, it makes sense to still sell it at a higher price point. It’s your job as an ecommerce store owner to determine what people are willing to pay by researching other stores, and by adjusting prices based on demand.
Don’t Have Only One Type of Product
It makes sense to sell to a niche. People will be more likely to buy similar products than completely unrelated ones. This doesn’t mean, however, that your furniture stores must only sell furniture.
If you’re trying to sell your furniture online, you’ve probably realized there can be stretches of time where no one buys anything. This is because furniture is a large-ticket item that isn’t typically bought impulsively, since the customer will spend a lot of money and needs a good amount of space to display or store the product.
By also having smaller, more affordable items in your inventory, people will tend to spend money in your store even if they don’t go all the way to buying a piece of furniture. Try to choose products that stick to and enhance your ecommerce store’s brand. Stocking cheap, throwaway products will not create positive associations with your online store.
Bundling Home Décor Items
Offering discounts for people who buy several small items is another effective way to boost sales. It’s always beneficial to keep your inventory moving along. Taking a small hit on profit per unit can be worth it if you sell four units instead of one. It’s essential you take some time to calculate bundle deals that entice customers, while still providing a reasonable margin. You can also offer free gifts with larger products to make big purchases seem more worthwhile to consumers.
Shipping Price Will Scare Away Sales
Shipping cost is one of the top reasons why customers abandon their ecommerce carts. It’s just a huge turn-off for people when they finishing shopping and realize their purchase is actually going to cost them much more than they had thought. Even if you don’t offer free shipping, it’s a good idea to give your customers a highly competitive shipping rate. Doing so will lower the chance of them having second thoughts when about to pull the trigger on the purchase.
These are a few ways ecommerce furniture and home décor sellers are increasing their profitability through smarter pricing and inventory selection. It’s crucial you implement strategies in these areas to keep your ecommerce store ahead of the curve.
