How to calculate the profit of product pricing on e-commerce platforms?Taobao products commonly used pricing formula

Someone left a message and asked me that the competition for the products I make now is very fierce, and it is estimated that there will not be too much profit in the future.

So now the energy is to maintain this profit, or to find new products?

• In fact, first of all, you have to find the competitive logic and standard for the old product (that is, you can always maintain some advantages), that is, to keep it alive.
• Then, most of the energy goes to discover new products and test new products.

E-commerceHow are the products of the platform priced?

Let’s talk about a case of e-commerce platform pricing:

• at the beginning of the yearSmall tradeThe brand wants to put a product on the shelves, and the product cost is 200 yuan.
• If the price is based on cost, it is usually production cost * 2, and selling it for about 400 yuan will have a very good profit.
• Because there is a gross margin of 200 yuan.

E-commerce product pricing principles

However, at that time, we analyzed the innovative process of this technology product and our solution to the needs of users;

We directly set the price of 1000 yuan, and now useWechat marketingThe sales are ok, and the user experience is also good, but the advertising fee will be a little more expensive;

Therefore, the pricing principles and premium space of e-commerce products mainly depend on:

1. the needs of the population;
2. Competitive solutions;
3. Whether the product process is innovative;
4. brand premium;

E-commerceCommonly used pricing method strategy model

You just need to calculate the cost of the product for sale and add the profit you want to make.

Remember that the cost of a product here includes the purchase price of the product as well as various operational shipping, human resource costs, etc.

The price you add to your costs must be such that you can make a profit while keeping the business running.

E-commerce product pricing formula

The calculation formula is:

"Price=Cost/Exchange Rate/(1-Category Commission)/(1-Affiliate Commission)/Number of Discounts/(1-Profit Rate)", specifically "(Single Piece*Quantity+Domestic Freight+International Freight+ Customs clearance)/Exchange rate/(1-Category commission)/(1-Affiliate commission)/Discount/(1-Profit rate)”

Basic principles of e-commerce product pricing

E-commerce operations have high requirements on the basic principles and logic of product pricing.

• For example, for any data, the reasons behind it will be investigated.
• For example, if you see 5000 advertisements in a week, and 30000 sales, you can't suddenly feel that this is very good and has a good profit.
• But to refine it, for example, which product and which channel is the specific advertisement spent on?
• There may be two or three products, and a certain product advertised is actually a loss.
• Or maybe, a product can increaseWeb PromotionPut in, 10000 advertising fees, you can get 60000 sales.

E-commerce operation is to deduce every possibility, and then repeatedly test it successfully.

you would love to engage in something like thisInternet marketingOccupation?

I hope that the above "How to calculate the profit of e-commerce platform product pricing?"TaobaoThe "Commonly Used Pricing Formulas for Commodities" method will be helpful to you.