Prices that Drive Sales:

Turkey's e-commerce market is growing rapidly, especially on Trendyol. By 2024, the number of sellers on Trendyol will increase by 15%, while sales through e-commerce will reach $30 billion. In an increasingly competitive environment, the right pricing strategy is becoming the most important part of a successful business. The price of a product either attracts or repels buyers; striking the right balance between price and profit not only increases sales but also lays the foundation for a sustainable business structure.

It is not enough to rely only on intuition to find this balance. It is much more important toanalyze data, to understand all aspects of the pricing strategy. Restatos' pricing tool helps sellers to perform a unit economy analysis of their products. Today, we will explore three scenarios of how this tool can improve your business.

Scenario 1: Determining the True Cost of Goods and Formulating a Pricing Strategy

A novice seller has bought a product from a supplier for 200 pounds and is wondering how much to sell it for in order to make a profit and get customers to buy willingly. Considering that in thee-commerce marketplace, marketplace commissions and other costs can eat up 20-30% of the selling price, doubling the purchase price to 400 pounds may not always be the right decision. Would such a price work? If not, what would be the optimal level? In today's business world you cannot act blindly: a miscalculated price can lead to losses or low sales.

Restatos offers a Price Calculator tool that helps sellers calculate the actual cost of production, taking into account all costs. By entering the purchase price, marketplace commission and planned mark-up, you can see at a glance how much is actually left as profit from the sale. For example, with a purchase price of 200 liras and an estimated retail price of 400 liras, the calculator will show that you can earn, for example, only 120 liras after factoring in commission and other costs. This might be a good margin for one product category, but critically low for another.

But it is important to realize this: Is it worth starting with such a product? Even before you buy, the Market Research tool in Restatos allows you to investigate how much this product is already selling for at your competitors and in what volumes. If most sellers are offering a similar product for 300-350 pounds, it probably doesn't make sense to offer it for 400 pounds. On the other hand, if the product is actively selling for 500 pounds and above in the premium segment, you can safely consider increasing the price.

So using analytical tools wisely can help you avoid mistakes at all stages, from purchasing to pricing. Instead of intuitive decisions, you get clear numbers to help you choose a strategy that will deliver maximum benefit. In today's automated world, data analysis and data analytics tools are becoming an integral part of business. Use them to stay ahead of the curve and not miss opportunities for growth.

Scenario 2: Optimize Your Pricing Strategy by Category

Choosing the right price segment can have a significant impact on the sales volume and profitability of your e-commerce marketplace business. Restatos offers a Price Segmentation tool that analyzes in real-time how price changes affect revenue and order volume. This allows sellers to test different pricing strategies and find the optimal balance between demand and profit.

The peculiarity of this tool is that it works with minimal price change steps - only 100-200 pounds. Even such a small change can have a significant impact on the final result. For example, a slightly lower price can significantly increase the number of orders, but reduce the total profit due to lower margins. On the other hand, a slightly higher price sometimes reduces demand, but results in higher revenue by maintaining higher margins.

Price segmentation helps sellers not only to see current results, but also to predict how a price change will affect their position in a particular category. By doingProduct Research and Market Analysis, you can analyze each price segment to see which is best for your products: budget, mid-range and premium: budget, mid-range and premium. This allows you to avoid price “failure” and choose a strategy that maximizes your benefits.

Traders working with Restatos can study the behavior of their clients in detail and predict how even a minimal price adjustment can take their business to the next level. This approach makes the pricing process not only accurate but also flexible, helping you navigate the highly competitive market with confidence.

Scenario 3: Prepare for Promotions and Sales with Restatos

The sales and promotion season is not only a chance to boost sales, but also a big risk if you have not thought through your pricing strategy well. Too low a price can lead to losses, especially when you factor in marketplace commission, and too high a price will scare away customers who are used to discounts. Restatos helps merchants avoid these mistakes with tools that make the promotion planning process simple and accurate.

One of Restatos' most important tools is Automatic Pricing, which has become an indispensable assistant during the sales period. It automatically tracks competitors' prices for similar products and adjusts your price in real time. For example, if you want to be 10 pounds cheaper than your competitors, AutoCena will adjust your price exactly. This is especially important at the peak of promotions when everything changes every minute and manual price management becomes almost impossible. With Price Tracker, you stay competitive without having to spend time constantly monitoring the market.

In addition, the price calculator in Restatos allows you to calculate in advance how much you can lower the price of a product to keep the sale profitable. By entering the cost price, commission and discounts, you get a minimum price below which you should not fall. This helps you clearly understand the limits within which a promotion will bring not only turnover but also profit.

Using Restatos tools, sellers can confidently participate in sales, avoid losses and increase their attractiveness for customers. Preparing for promotions is no longer a chaotic process, but a well-calculated strategy that brings real results.

Why is pricing important for business?

Pricing is the key to success in increasingly competitive markets. Setting the right price means not only attracting customers, but also ensuring your profitability. The wrong price can leave you with no profit at all or drive away customers who don't like high costs. It is important to realize that for the business to remain profitable, the price must be flexible and take into account not only market conditions but also your own costs.

- The wrong price can lead to losses or loss of customer interest;

- To ensure profitability, the price must take into account not only the competition, but also your costs;

- Being flexible in our pricing strategy will help you respond to changes in the market.

With the right tools, you can make life in the trading world much easier: you can accurately calculate the cost of goods, set the optimal price to maximize profitability and prepare for promotions, minimizing the risk of losses. You can create a pricing strategy that takes into account the specifics of your product category and market dynamics. With Restatos, all these processes become simpler and more transparent.