Online retailers can identify their customers -- and price competitively -- based on online shopping patterns and how the consumer comes to your site. This is called price differentiation. By examining and capitalizing on the way that the consumer comes to your site, merchants can create different price lines about how much the customer will be willing to pay.
Here's 60 Seconds On Pricing, brought to you by Upstream Commerce, reviewing the ways you might charge, based on how the customer comes to you:
* If the customer comes to via a price comparison site, they're looking for low prices... and that's pretty much where you stand. If you don't offer low, highly competitive prices, they won't even bother to come.
* If they come to you via a Google search, it means they were already looking for a specific product and found you. Charge them a middle price.
* If they find you as a result of a review, or if they come directly to your site, they are already comfortable -- with you, your site, your customer service, your value -- and they're highly likely to pay your asking price.
The bottom line, of course, is to not leave any money on the table. You want to get the most out of every single sale. With the effective use of price differentiation, you'll enjoy increased sales and larger profit margins.