9 Pricing Strategies for eCommerce Business (+Real Examples)

Learn how to choose the right pricing plan for your online store. Discover the pros and cons of each approach and see how real businesses use them to grow profit. A good pricing strategy boosts profits and builds brand loyalty.

What is a Pricing Strategy?

A pricing strategy is how businesses decide the best price for their products or services. It looks at costs, competitor prices, customer demand, and brand image. Choosing the right strategy helps maximize profits, stay competitive, and support business goals. In eCommerce, the right pricing strategy can make a big difference in sales.

How to Choose the Best Pricing Strategy for Your eCommerce Business?

Choosing the right pricing strategy means understanding your market and business model. It needs planning and regular review to keep up with customer behavior and trends. Here are key tips to help you pick the best pricing strategy:

A smart pricing strategy can impact both revenue growth and profit margins. For more insights, check out our article on revenue growth vs profit growth.

1. Discount

9 Proven Pricing Strategies for eCommerce Success [with pros & cons & real-life examples]

1. Discount Pricing Strategy

Discount pricing is one of the oldest yet most effective eCommerce strategies. It appeals to price-sensitive customers by easing the pain of spending money, leading to increased traffic and higher sales volume. It’s especially useful for clearing out slow-moving inventory.

However, there are two drawbacks to avoid:

How to Use Discounts Profitably:

Be cautious with discount pricing as excessive discounts can hurt your net profit margin.

To maximize profits, only discount products with high-profit margins. If you’re a Shopify store owner, use TrueProfit’s Product Analytics to monitor profit margins and make informed discounting decisions.

Example:
Offer discounts strategically, like seasonal sales or for slow-moving products, but avoid making it a year-round habit to maintain brand value.

2. Charm Pricing Strategy

Charm pricing leverages the psychological impact of ending prices in 9 or 99. For example, $8.99 is perceived as significantly cheaper than $9.00, even though the difference is just one cent. This effect is known as the left-digit effect.

Why It Works:
Our brains process $8.99 as $8.00, leading to a perception of greater value. However, this tactic only works when the leftmost digits are different (e.g., $2.99 vs. $3.00).

Example:

Instead of pricing a product at $50, set it at $49.99 to increase its perceived affordability. Komono effectively uses this strategy by pricing their watches with nine-ending numbers.

3. Value-Based Pricing

Price your products based on what customers perceive as valuable, rather than just on cost. This works well for unique or trending items that offer more than the basic function.

Why It Works:
It taps into the customer's perception of quality and uniqueness. When customers believe a product offers superior benefits, they’re willing to pay a premium—even if the cost to produce is lower.

Example:
Apple uses value-based pricing by charging higher prices for its iPhones. Customers pay more because they see the iPhone as innovative, high-quality, and a status symbol.

4. Slightly different prices for similar products

When customers face multiple options with identical prices, it can lead to decision paralysis. By introducing slight price differences between similar products, you can nudge shoppers to make a purchase rather than delaying the decision.

Why It Works:
A study from Yale University found that minor price variations shift the customer’s focus from “Should I buy at all?” to “Which one should I buy?”

Example:

Amazon often lists similar products with slight price variations, helping customers decide which one to purchase.

5. Subscription Pricing

Offer recurring billing options for consumable or frequently replaced products. Subscription pricing not only generates steady income but also helps increase customer lifetime value over time.

Why It Works:
Subscription pricing creates predictable income and fosters long-term customer relationships. Customers enjoy convenience and cost savings over time, while businesses benefit from continuous revenue.

Example:
Dollar Shave Club offers a subscription service for grooming products, delivering razors and other essentials regularly at a competitive price, leading to high customer retention and steady sales.

6. Precise Pricing Strategy

Precise prices (e.g., $93.49) work better for products requiring logical thinking, such as tech gadgets or appliances. They create an impression of accuracy and trustworthiness, suggesting the price is carefully calculated.

Why It Works:
Precise prices imply detailed cost consideration, making them more believable. This approach is ideal for rational purchase decisions.

Example:
BioLite uses precise prices to convey credibility and knowledge in their product value.

7. Price Anchoring Strategy

Price anchoring influences customer perception by presenting a high-priced item alongside a lower-priced one. This makes the lower-priced item seem like a better deal by comparison.

Why It Works:
Anchoring relies on the human tendency to judge value based on the first piece of information they see. 

Example:

Williams-Sonoma famously increased sales of a $275 bread maker by introducing a $500 model as a higher-priced alternative.

8. Bundle Pricing Strategy

Bundle pricing combines complementary products at a slightly discounted price, increasing the average order value while delivering perceived value to the customer. Bundle pricing not only increases sales volume but also boosts your average order value. Learn more how to boost your ecommerce profit with 6 tactics to increase AOV.

Why It Works:
Shoppers are more likely to buy related products together when offered as a bundle at a discount. However, the bundled products must be relevant and enhance the shopping experience.

Example:

Billie offers a bundle of 4 items for their starter kit, encouraging customers to purchase the entire set instead of individual items.

Pro Tip:
To find the best bundle combinations, use TrueProfit’s Bundle Analytics to identify frequently bought-together products.

9. Limited-Time Offers

Use flash sales or special promotions to create urgency. Limited-time discounts can push customers to buy quickly, especially during peak shopping seasons.

Why It Works:
These offers create a sense of urgency and scarcity, motivating customers to act fast to secure a deal before it expires.

Example:
During Black Friday, many eCommerce retailers offer significant discounts for a short period, driving a surge in sales as customers rush to take advantage of the deals.

Final Thoughts

Effective pricing strategies can transform your eCommerce business - but tracking key pricing metrics manually can be complex and time-consuming. 

With TrueProfit, get real-time insights into your pricing performance and profit margins, all in one easy-to-use dashboard. Join thousands of Shopify merchants who have unlocked their true profit potential.

Discover what proper profit-tracking looks like at trueprofit.io

Irene Le

Irene Le – Content Manager at TrueProfit & eCommerce Marketing Specialist  Irene Le is the Content Manager at TrueProfit, specializing in crafting insightful, data-driven content to help eCommerce merchants scale profitably. With over 5 years of experience in content creation and growth strategy for the eCommerce industry, she is dedicated to producing high-value, actionable content that empowers merchants to make informed financial decisions.