Dreyton S. Hilton’s Post

Why every e-commerce team should include a revenue manager! Pricing significantly affects conversion rates, but promotions aren't always the best solution. While discounts can boost volume and conversion rates, they can also erode profits and EBITDA. Conducting A/B tests on pricing strategies, closely monitoring competitors and market trends, and activating your performance engine under optimal conditions are essential. Without the right pricing, you risk leaving money on the table and impacting your P/L.

Unlocking the Secrets: What 1,000+ E-Commerce Pricing Tests results show! 🚀 This Harvard Business Review will show you; how many small and medium-sized e-commerce businesses manage pricing informally, lacking a designated owner. They typically set prices based on gross margin targets, compare with competitors, and make adjustments. However, this approach is often seen as suboptimal, resulting in missed revenue opportunities. Price testing reveals that significant revenue potential is untapped without optimized pricing strategies. When I first dived into the e-commerce world, pricing felt more like a guessing game. But after conducting over a thousand pricing tests, the insights I’ve gathered have been nothing short of eye-opening. Pricing is not just a number; it's a message to your customers. 📊 Small changes can lead to big impacts. Tweaking the price by even a few cents sometimes made a big difference in sales. Customers love bundles. Offering products together at a slightly lower price often improved overall sales volume. The power of the number 9 is real. Yes, prices ending in .99 did perform better in most tests. These lessons have not only helped shape our pricing strategies but also led to significant improvements in both sales and customer satisfaction rates. I’m curious, have you experimented with your pricing strategies recently? What worked and what didn’t? Drop your thoughts or questions below! Don't forget to share this informative article by Maxime C. Cohen, Adam Kitain, Drew Marconi, and Andrew Raftery at HBR. Thanks. #ECommerce #PricingStrategy #BusinessGrowth #RetailInsights 😊👇

I came across this article from Harvard Business Review about price testing in e-commerce. The key takeaway is that testing different prices is an extremely valuable tactic to gain insight, and ultimately leads to improved margins. Link to article: https://lnkd.in/gVpw3iSC

Walmart is the big winner in Q1 at 22% growth, but Amazon is catching up to Walmart on total revenue. These are the two channels to double down on in 2024. eCommerce is growing at over 3x the rate of brick and mortar in Q1, but it’s really only Amazon and Walmart that are driving that growth.

USDC E-Commerce Quarterly data is out. Q1 2024 E-Commerce grew 8.5% vs the previous year. E-Commerce at Amazon grew 11% and 22% at Walmart, so the most other retailers didn't have a great quarter. E-Commerce for the quarter represented 22% of Core Retail Sales (retail minus restaurants, automobiles , and gas). Core Retail grew 3.8% YoY, and Core Bricks and Mortar grew 2.55% (without e-commerce). As you can see E-Commerce shot up in Q1 2020 (pandemic) The denominator of these ratios matters a lot... I'd argue Core Retail is the most informative, but you can also look at E-Com Revenue without a ratio. https://lnkd.in/ggeSbBEv

#Ecommerce : Big players using their past investments to #suppress mid- and small ones 🗣️ The regular published stats on #Ecommerce speak clearly: Big ecommerce players (like #Amazon or #Wallmart) are growing 2x as #fast as rest of the market. 🫁 In absolute terms that means that smaller players are forced to cost-cut, reorganize or prune assortment to sustain some #EBITDA “#oxygen” to survive. Often leading to deepening of their technical and modernization debt. 🍉 Speaking of investments, recent quarters seem to be bearing fruit for investments in logistics, marketing and automation that big players were forced (by their business acumen and foresight) to do after COVID times. 🪦 Watching this unroll makes it clear that smaller players will now often bite the second part of “Innovate or die” maxim. If I was (service) supplier for long running smaller Ecom players, I would watch their business indicators more closely. Even a topline (e.g. orders) growth might not be “shield” from this trends, often rather desparate last breath before doing under water level.

Top three qualities consumers seek from an e-commerce retailer are: lower prices (60%), free shipping (51%), a wide variety of product options (37%) and fast shipping (37%).

GOAL: Simplifying the ordering process of whiskey, and showing the instant satisfaction upon an online purchase.  E-commerce is undoubtedly growing in the right direction, however expensive shipping rates, three tiered system and other challenges make DTC and e-commerce sales incredibly slow for brands in the spirits industry.  We created a video to promote the growth of e-commerce and showing the simplicity of buying a spirit online.  Does this achieve this for you? Would love to hear what some other brands are doing?

DHL's E-Commerce Trends Report: Convenience, Price, Transparency This won't come as a surprise but DHL released their e-commerce trends report looking at a global selection of shoppers. In the report there were 3 key highlights for retailers: - Convenience: Reduce the friction to buy with pre-filled purchase information, multiple delivery options and detailed PDPs optimized for laptop, desktop and mobile. - Price: Consumers globally are price sensitive so ensure the price on the website is the price they pay (i.e., include delivery and other service fees in the full upfront price). - Transparency: Tell consumers how to win and they'll follow your lead. Discounts for setting up an account or a list of carrier options to start. Put the power in the consumer's hands and watch conversion rates grow. For more details, read the report here: https://lnkd.in/eycw6KMC #DHL #ecommerce #retail #marketplaces #consumertrends #logistics

Lessons from More Than 1,000 E-Commerce Pricing Tests https://lnkd.in/dsTXQQh9 The authors have run 1,117 price tests  across more than 300 e-commerce retailers  tests encompass more than $500 million worth of transactions  from 100 million online shoppers. Many retailers don't run any tests and leave money on the table FINDINGS: retailers tend to overprice listed prices but underprice shipping fees 96% of e-commerce retailers that ran at least three price tests found a better price even retailers who only ran a single price test could find a better price point in 72% of cases