Pricing

Alibaba, Retailers Gearing Up for Successful Singles Day
November 10, 2017 at 10:34 am

This Saturday, Nov. 11, the Chinese e-commerce giant Alibaba will hold its annual Singles Day event, which last year grossed $17.8 billion (USD) in sales, up from $14.3 billion in 2015, according to a report from Fung Global Retail & Technology (FGRT). The 24-hour phenomenon has quickly become the world's largest shopping day, consistently surpassing…

Decoding Price Elasticity to Unlock Revenue and Minimize Risk
November 8, 2017 at 11:15 am

It’s no secret that there has been a shift in shopping behavior due to growth in millennial spending power, aging of baby boomers and the growth of online shopping. These changes are impacting pricing and demand, and are creating a disconnect for retailers and brands between what they're charging and how much consumers will actually…

Amazon Now Lowering Prices on Third-Party Seller Products
November 6, 2017 at 11:31 am

Amazon.com has quietly started lowering prices by as much as 9 percent in recent weeks on certain products offered by third-party sellers, according to a Wall Street Journal report published on Sunday. Until now, Amazon has controlled prices only on the merchandise it sells directly to consumers. Now, according to the report, it's discounting the items…

Decoding Price Elasticity to Unlock Revenue and Minimize Risk
November 1, 2017 at 4:52 pm

First Insight examined pricing and elasticity trends on over 90,000 items processed through InsightSuite — the company’s predictive analytics platform which enables retailers and manufacturers to select, price, market and buy new products with no sales history — between September 2015 and August 2017, along with other proprietary data sources. Using its proprietary data on the elasticity of demand, First Insight calculated average price elasticity and the change in elasticity by category and subcategory over the last two years. Categories included womenswear, menswear, children's wear and home goods across North America and Europe.

Is Price Really King This Holiday Season?
October 30, 2017 at 11:15 am

The holiday season represents a massive opportunity for retailers, both online and traditional. Last year’s Adobe Digital Index Report showed consumers spent $91.7 billion online in the U.S. alone, an 11 percent jump from the year before. In Canada, the U.K., and France, this rate of growth was similar, with jumps of 14 percent, 11…

Breaking Down Retail Myths: What Shoppers Really Think of Your Pricing Strategy
October 9, 2017 at 10:09 am

The balance of power has shifted dramatically away from retailers and firmly to shoppers in recent years, and retail pundits are abuzz with predictions, prognostications and prescriptions for anxious retailers: Focus on in-store experience! Keep prices consistent across all channels! Match competitors’ prices instantly or risk losing your customers! Beware of relying on automated algorithms…

How to Leverage Price Elasticity Using Demand Analytics
October 6, 2017 at 10:35 am

Picture yourself at a farmers market shopping for tomatoes. It’s not something you absolutely need at the moment, and you know your local grocer sells them for much less than the vendor you’re talking to, so you haggle and get a lower price. Alternatively, imagine you stop to purchase apples but you don’t know how…

The Winning Strategy for MAP Success and Long-Term Brand Value in the E-Commerce Market
October 4, 2017 at 8:53 am

As virtually all consumer product manufacturers and brand owners by now realize, the world is becoming increasingly e-commerce driven. While this paradigm shift has ushered in numerous opportunities for businesses, it also presents significant challenges. One of the most significant challenges businesses face in this environment is how to effectively enforce minimum advertised price (MAP) policies and uphold brand value in the face of a constant assault from diverters and unauthorized marketplace sellers advertising their products at prices that harm brands. What's becoming clearer each day is that even the most iconic brands must act swiftly and aggressively to preserve downstream sales and overall brand integrity.

Effective Pricing for Customer Delight
October 3, 2017 at 1:01 pm

Consumers daily purchase decisions are influenced by a number of factors. One of the primary factors is price. From social media to digital ad buying, faster mediums are driving the way consumers are reacting to price. Finding the right price is an age-old discipline in retail, and has evolved over time to incorporate the changing…

Neiman Marcus Closing 10 Last Call Outlet Stores
September 13, 2017 at 10:25 am

Neiman Marcus is taking a step back from its discounting strategy and closing 10 of its 38 Last Call outlet stores. The upscale department store chain wants its Last Call stores to stand out by offering consumers more merchandise from its full-line stores in proportion to the made-for-outlet merchandise that offers higher margins, but isn't…