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In essence you have to figure out the appropriate balance of profit-making per unit and the most effective number of purchases. There are numerous strategies to price your product and assist you with the above however the most effective method is to usually combine at least 2 strategies.
Pricing can make or the difference in your ecommerce business so it's vital to spend enough time on this to get it right. Also, don't forget that depending on your overall strategy , you could add other strategies into the mix to increase the profit from each customer and their lifetime value
The method of operation is that you simply take the cost of the unit as determined in step 1 (transportation and other cost variables in the equation) and then add the desired margin over that or a simple fixed amount of money that you find to be optimal. The total sum will be ultimately the price of the item.
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