Successful Pricing Strategies for Drop Shipping Retailers: Create the Ultimate Up-Sell with AliExtractor


Have you ever wondered why retail giants like Walmart, end create prices like $14.97? Why the .97c preference? Because when it comes to pricing, there is some strategies that have been proven to increase sales and the value perception of the product purchase for consumers.

You want them to buy, and you want them to be happy with the deal they received on their purchase. And guess what? A happy customer is a returning customer too. And that’s a good thing.

In this article we’re going to share some of the psychology behind e-commerce pricing strategies, how and why they work, and where you can use these models to upsell and increase your average order value. We’ll also explain why promotional product bundles added from AliExpress (using AliExtractor for your cashback bonus) can protect your profit margin and reduce the out of pocket cost for promotional loss leaders.

Creating Product Bundles That Fulfill a Need (and Sell Like Crazy)

Step out of the mindset of a drop shipping store owner and think like a consumer. When you need multiple items for a special event or purpose, do you want to go through all the steps to find each individual item, and add it to your cart?

Nope. That takes a lot of time. And when you consider that as much as 60% of online purchases are made on a mobile phone, that task is even more tedious. Do you hate small buttons on mobile screens? We do too.

Bundle pricing makes it easy to acquire a set of related items that the consumer needs for a specific purpose. And the perception of “more for less” is strongly engrained; we prefer buying a combo that is offered at a discount, rather than separate items. You can probably thank McDonald’s Restaurants for training us to crave the combo!

Here is the mysterious psychological aspect of bundle pricing that’s a little hard to understand. Consumers will buy a bundle that is discounted, even if they don’t need all the items included in the special offer. Think again about going through the drive-thru of your favorite burger joint. You may not even want the fries, but you’ll get them anyhow because they come with your combo. And like drive-thru menus, online shoppers aren’t afraid to upsize the offer too, for a small incremental price bump.

More is more, and that value perception is critical to the success of many e-commerce businesses. In fact, did you know that some high-profit drop shipping stores specialize in bundled products? You see this successful model frequently with eBay and Amazon power-sellers, because they have figured out the psychology and the revenue potential of giving their customers what they want.

The feeling of satisfaction that online shoppers experience when they buy a bundle, also has other reciprocating benefits. They are more likely to tell family and friends about the ‘steal’ they got on your store, by sharing the complete bundle and discounted price. That offers even more ‘bang for their buck’ because they experience a residual social value provided by their purchase.

And free word of mouth (WOM) advertising.

Where should you use bundle products and special offers in the customer sales journey?

  • Use a bundle to entice store visitors to drill down into a specific product category page. Are they looking for camping supplies? Grab them on your landing page with a bundle that they can qualify for, with a minimum purchase amount. Increase your per cart order value.
  • Use a bundle as a promotional tool on social media, to drive traffic to your site. With AliExtractor, you can select items from the same vendor that offer up to 8% additional cash back. Depending on the products you choose and cashback amount, you can reduce a loss-leader to an at-cost or small margin of profit (even while offering a steep discount).
  • On the exit path to the cart and order page, why not offer an attractive and discounted bundle? You can set parameters to qualified purchase amounts and upsell your customer with a specialty bundle that compliments the purchase.

Having difficulty growing your direct-email marketing list? You want to grow your subscribers so that you can send them new product introductions, special sales and discount offers, so why not give them a discounted bundle as a reward for subscribing to your business email?

BOGO (Buy One Get One Free) Offers

Consumers love nothing more, than getting something for free. Do the math using AliExtractor and our instant profit margin calculators, to find out which products from the same vendor, can be used for a buy-one-get-one offer.

The BOGO method is an effective variation for bundled pricing. In fact, BOGO offers have been shown to increase overall order values and entice add-on product selections. The truth is that many consumers arrive at a shop with a rough idea of how much they intend to spend. When they participate in a BOGO offer, they may have not met that planned spend, and may be persuaded to add additional items to their cart.

Time-Based Pricing Models

When you see a flashing sign that says “limited time offer” you want to immediately grab your wallet and buy that product. Time-based pricing models capitalize on the ‘fear of missing out’ or FOMO impulse that shoppers have, when they are interested in buying a product.

On most of the e-commerce shop platforms there are great apps that can help you set up a limited time offer. It’s important to design your time-based pricing transparently for the consumer; what will this product cost them to purchase, if they don’t buy it within the specified time period? Effective page layout and design for this pricing strategy, means full-disclosure about the standard price after the special promotion is over.

How can you use time-based pricing models to upsell your cart transaction values?

  • Use it on your home page to get attention.
  • Use it as an upsell offer for qualified purchases. Direct your customer to a popup special offer that they can add to their cart NOW, to get the limited time discount.

The best design for time-based bundle or single product offers, is a count-down clock. Auction sites like eBay use this methodology to create a sense of urgency that prompts a purchase decision. If it works for eBay, it can work for your store too.

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