Pricing, Margins & Offers: How to Stay Profitable When You Start Selling Online
Pricing, Margins & Offers: How to Stay Profitable When You Start Selling Online
Going online doesn’t mean discounting yourself to death.
Use this as a simple framework.
1. Know Your Real Cost Per Order
Include:
- Product cost
- Packaging
- Shipping / pickup charges
- Payment gateway fee
- COD risk buffer (if you allow COD)
- Returns / replacements rate
This gives your minimum profitable price.
2. Design Offers With Logic, Not Panic
Use offers to:
- Increase average order value (combos, add-ons)
- Reward genuine customers (first-order, prepaid incentives)
- Clear seasonal or slow stock
Avoid:
- Blanket discounts on everything, forever
- Offers that don’t account for shipping or COD charges
Your ShopSwift store supports rule-based discounts and coupons, so offers can be structured—not random.
3. COD, Prepaid & Profit
COD is powerful in India but must be controlled.
Smart moves:
- Small COD fee where needed
- Prepaid-only for certain products / locations
- Highlight prepaid benefits (priority processing, extra reward)
All of this can be configured during setup, aligned with your plan.
4. Tiered Pricing as You Scale
As you grow:
- Use volume-based pricing for bulk buyers
- Create special collections or pricing tiers for loyal customers
- Offer premium bundles instead of heavier discounts
5. Review Monthly, Not Emotionally
Check:
- Top products by margin, not just revenue
- Which offers actually convert
- COD vs prepaid performance
Adjust your rules in your dashboard without touching code.
