eCommerce Pricing Strategy?

Are there any case studies or user experience on pricing products and which customers prefer to see?

For example) $9.95 vs. $9.99 vs. $10

 

It'd be the same as retail not on the internet. The cheaper price attracts. However, as it's much easier for the customer to find a competitive product and this product could be similarly priced, there would be other more powerful considerations. Such things as postage cost + time.

Normal business extras such as warranty and customer service would also help, I believe.

 

This might be totally wrong... but, I think even your pricing says something about your brand. If you have flat dollar amounts of increments of .50 I think that says something to the costumer. For some it might say not professional, to others it might say - more genuine, real and small.

For my store - we go for the real, the genuine, the small... but again, maybe we are just unprofessional ;( lol

 

Earlier this year we ran a pricing strategy experiment on eBay for a month for 3 items with BIN prices (excluding postage) set at $13.45, $12.99, $12.95, $12.90, $12.75, $12.50 and $12.45. We ran the experiment to find out how customers reacted to pricing strategies, what prices they preferred and to figure out how to set upcoming price rises.

To cut the story short, the end result was that some 38% of customers preferred .95 prices, while some 23% preferred .90, 21 preferred .99%

We now use .95 for almost all of our items regardless of the sales channel (ebay, ecommerce site, b&m store, mail order).

Any price increases are added in 1, 2, 5...whole dollar format, rather than as a percentage (i.e. 5% price increase), or $0.50, $1.50, $2.50 increases. So that the price of an item always ends in .95