Profit margins are the lifeline of online retailers and employing the best pricing and merchandising strategies can gain retailers up to 8% more revenue and 25% more profit.
San Francisco, CA (PRWEB) May 06, 2014
Profit margin is a sink or swim issue for online retailers. Typical retail profit margins can vary but regardless of what type of products are being sold, improving it presents a huge opportunity for optimizing profitability. Profit margins are the lifeline of online retailers and employing the best pricing and merchandising strategies can gain retailers up to 8% more revenue and 25% more profit. WisePricer’s new infographic explains the top 5 ways that online retailers can improve their profit margins based on tried and true methods, in addition to some innovative new strategies.
Retailers are faced with a myriad of barriers to maximizing margin, with consumer price sensitivity and increased price competition being two of the top challenges. Finding ways to boost profits in an increasingly competitive landscape can be a daunting task for many retailers. WisePricer CEO, Arie Shpanya explains, “Only 27% of retailers believe that their pricing strategies are effectively driving top and bottom line results. That shouldn’t be the case and luckily, it doesn’t have to be.” With challenge comes opportunity, and maximizing margin can be achieved through a combination of flexible pricing, superb customer service, and inventory management.
Implementing a sound pricing strategy that is responsive to industry fluctuations can have a huge impact on profitability. Dynamic pricing is one of the key strategies offered by WisePricer for improving profit margins. It is defined as a flexible pricing strategy in which retailers change the prices of products based on both internal sales or traffic data, as well as external market conditions such as time of day, competitor prices, and more.
To learn more and view the full infographic, visit http://wisepricer.com/infographic-margin.
WisePricer is a full-featured pricing and merchandising platform that monitors, analyzes and reprices retail products in real-time. With automated repricing and easy sync, WisePricer enables retailers to boost profit margins and revenue, price with confidence, and improve merchandising through powering the development of a sound pricing strategy.
For more information on WisePricer, please visit wisepricer.com.