Solved

ecommerce pricing strategies

Posted on 2010-09-05
3
503 Views
Last Modified: 2013-12-14
We're pretty new to the ecommerce market and I believe that there are customs and payment structures which differ to standard corporate site builds. Am I right in thinking that you charge an intial  build and production charge 10K+ for example and then add a monthly maintenance fee or claim a small percentage of each online sale? If you do have the maintenance charge what is the usual amounts and what is the best way to explain this to clients? If you take a percentage of the transaction what type of percentages are seen as sensible?

thnx in advance
0
Comment
Question by:sousflai
[X]
Welcome to Experts Exchange

Add your voice to the tech community where 5M+ people just like you are talking about what matters.

  • Help others & share knowledge
  • Earn cash & points
  • Learn & ask questions
3 Comments
 
LVL 9

Assisted Solution

by:khaledf
khaledf earned 166 total points
ID: 33606906
it all depends on your expenses on each transaction and other factors

brainstorming and research is required depending on your business model in order to list all expenses and then you can specify a target of sales to be reached period-wise.

I have seen many strategies in this regard.
some will charge $1 + %5 of each sale.

you should get the lowest fee payment gateway in order to increase your revenue.
after you get more experience you can negotiate with your payment gateway for lower fees once you get high volume of transactions generated from your site.

hope this helps
0
 
LVL 7

Accepted Solution

by:
Kurt4949 earned 167 total points
ID: 33608324
I would avoid charging a % per each sale.  There are plenty of shopping cart solutions that don't charge that fee.  Once your customers realize that they'll probably look else where.  Online sales are very competitive and every penny counts.  Instead I would look at charging an up front fee to get them up and running then you could also charge a hosting and maintenance fee depending on how much on going work the customer expects from you.  
0
 
LVL 3

Assisted Solution

by:yohanesbule
yohanesbule earned 167 total points
ID: 33608402
I believe that nowadays such huge expense would become useless. Huge corporate would prefer to hire their own programmer to do just that.

I think its better for your to give 50% discount for design, programming and other related... Only then you are eligible to ask for small percentage of the sale for the rest of the company life... :)

If you are developing payment system gateway and maybe payment processing such as paypal and moneybookers, then yes, you are able to charge for fees right from the start.

Hope this helps.
0

Featured Post

Free Tool: Site Down Detector

Helpful to verify reports of your own downtime, or to double check a downed website you are trying to access.

One of a set of tools we are providing to everyone as a way of saying thank you for being a part of the community.

Question has a verified solution.

If you are experiencing a similar issue, please ask a related question

    Over the past few years, small business and home owners have become so dependent on internet that a need for redundancy has arisen.    What happens when your small business or home / home office loses its internet connection?  The results c…
Original post  on Monitis Blog. Web performance monitoring is broken into two camps: passive and active. Passive monitoring is defined as looking at real-world historical performance by monitoring actual log-ins, site hits, clicks, requests for …
This tutorial demonstrates a quick way of adding group price to multiple Magento products.
This video explains how to create simple products associated to Magento configurable product and offers fast way of their generation with Store Manager for Magento tool.

691 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question