What factors make up the cost of cross-border e-commerce products? How to set prices?

Cross-border e-commerce makes profits by selling goods, and e-commerce goods themselves have costs, so merchants can only earn the profit part. So what factors make up the cost of the goods? For friends who want to do product analysis, they also need to understand its cost composition factors.

How to set the price?

In fact, the cost of a product, in addition to the original production cost of the product, also takes into account factors such as logistics costs and promotion costs. Secondly, it is also necessary to be clear about pricing:

1. Same product. Is your product already made by someone else? If so, what is their price? For example, you set the price of your product at 14.99 yuan, but the same products of your competitors are all 9.99 yuan. In this case, it is normal that you cannot sell it. You should often switch to the buyer's perspective to look at the product, and don't be too self-centered in the background.

2. Economic level. For example, the pricing will be different if you are doing business in Europe and America and developing countries in Southeast Asia. Among Southeast Asian countries, Singapore has the best economy. If you are doing business in Singapore, the pricing may be higher than other places.

4. Consumer groups. People with this kind of spending power care more about quality than cost performance. The same is true for the consumer groups of Apple watches, drones, and various smart gadgets. Use this logic to think in reverse, what kind of people are likely to buy your products? If they are mostly students, then they may be more sensitive to price.

5. Male and female habits. In general, the consumption frequency is high and the single purchase amount is low; while the frequency of men is low, but the single purchase amount is high. Take bags as an example. Women can buy three bags a year or more, while men may use them for three years. Based on this characteristic, should we focus on the quality of men's bags and set a higher price?

6. Difficulty. For example, when you move products to 1688, the easier it is for you to get them, the greater the competition, and the harder it is to set a high price. This is because the same is true for your competitors. Of course, even if you get products from the same platform, you may be able to do it differently, such as buying in large quantities to lower the purchase price. The higher the threshold, the higher the price you can set because users have no choice.

7. Low price to attract traffic. For some products, you can set a low price to attract traffic, reduce the profit or set a small loss, and then make money by combining it with other products.

For example, if you offer free shipping for orders over RMB 30, you set the price at 9.99, which makes no profit. However, customers will buy other products in order to get free shipping, and you can make money from other products.

8. Comprehensive consideration. But sometimes the situation is complex and changeable. Some products set high prices just to screen out users with low spending power. Therefore, the deposit can be considered based on many factors.

In fact, the cost structure of cross-border e-commerce products includes the production price, logistics price, promotion costs and other related costs. Of course, it depends on the product. Some products may only require the production price, so everyone needs to consider many aspects in pricing.