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eCommerce Archives

Pricing is one of the most complex aspects of eCommerce. Price too high, and you lose sales. Price too low, and you miss out on potential profit. At least, that’s the conventional wisdom. Psychological studies have shown that the impact of pricing choices is a more complex than a simple dynamic of cheaper and more expensive.

Some pricing rules are downright counter-intuitive because shoppers use a host of value heuristics in their shopping decisions that produce behavior that doesn’t seem “rational” from the perspective of classical economics. Read More »

Compared to brick-and-mortar retailers, there’s one area in which eCommerce is at a disadvantage — shoppers can’t examine the goods. However clear product descriptions and images are, there is no substitute to being able to try before buying.

Customers take a risk when they buy a product from an eCommerce store. It might not be what they want. It might not fit. It might not work. All of which breeds doubt that can lead to the shopper abandoning the purchase.

Merchants can combat that doubt with a returns policy that makes it easy for customers to ship goods back and get a refund if they experience buyer’s remorse. Read More »