Two big shifts in the world took place this week that will mean big opportunity for your e-commerce business.
1. Price of oil has hit 6 year lows at $42/barrel.
2. This week China devalued its currency for the first time in decades by 4%.
These two changes mean consumers have more money to spend and Chinese imports will be even more cheaper.
How will you seize this opportunity?
One way is to position your pricing so that you can outfox the competition.
But what kind of pricing?
According to the best ecommerce Amazon, the best pricing strategy for long term loyalty subscribers is a membership.
Here are six facts about Amazon’s juggernaut loyalty program:
1. Amazon launched Prime in 2005 priced at $79 a year. Members received free 1 day shipping.
2. In 2014, Amazon raised the price of Prime to $99 a year.
3. Amazon Prime customers spend $1200 annually while their regular customers spend $700 annually.
4. Amazon has 44 million Prime members.
5. In 2014, Amazon increased it’s ad budget to $1.2 billion to attract more consumers to Amazon Prime.
6. According to Channel Advisor, 82% of Prime members buy on Amazon even if the item is less expensive somewhere else.
So what can you do to setup a prime like system for yourself?
Source: Raheem Sarcar
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