Pricing strategies of online bookstores
Published on: Mar 4, 2016
Transcripts - Pricing strategies of online bookstores
PRICING STRATEGIESOF ONLINEBOOKSTORESPrepared By,Nithya Ann Thomas
Earlier if you wanted to buy a book, youbought it from a bookstore. Book buyingpossibilities have changed. Now you can payto download a book to an e-book reader orbuy it from an online source e.g., theauthor’s or publisher’s website,Amazon.com.
Pricing StrategiesPricing strategies for products or services encompassthree main ways to improve profits. These are that thebusiness owner can cut costs or sell more, or find moreprofit with a better pricing strategy. When costs arealready at their lowest and sales are hard to find,adopting a better pricing strategy is a key option tostay viable.
Important factors to beconsidered for Pricing EBooks Length Readers passion Authors platform Reader trust Series or not Author marketing Perceived value Platform building
Charge extra for convenience Link eBook prices to their ”value proposition” Factor in the author’s time Make it free to help gain market share Price newer titles higher than old ones Tie an eBooks price to the cost of other formats Let the readers decide7 Must-Consider Strategies for EBookPricing
Pricing Strategies ofAmazone.com offers discounted prices such as 30% off any book over$15 coupled with a very popular free shipping optionon nearly all orders over $25. Amazon uses a form of value pricing strategy known asevery day low pricing, which Kotler and Armstrongdescribe as charging a constant low price with few orno temporary price discounts.
Amazon also offers value-added services todifferentiate themselves as a retailer. This includesoffering free shipping, as well as services such aspersonalized product recommendations and bridaland other gift registries. Web’s most popular site due to its strategy of lowproduct and shipping prices combined with a superiorcustomer experience