Setting the right price for your product on Wildberries is a critical step in ensuring profitability while staying competitive. Wildberries, being one of the largest online marketplaces, operates in a dynamic environment where pricing strategy can significantly impact sales volume, customer loyalty, and overall business success. Here’s a professional guide on how to calculate and set the price of a product effectively for Wildberries.

Understand the Wildberries Commission Structure

Wildberries charges a commission for each sale, which varies by product category.

Category-Specific Rates: Commissions typically range between 5% to 25% of the product price.

Additional Fees: These may include storage fees (if using Wildberries’ fulfillment service) or promotional costs if you use advertising features on the platform.

Calculate Your Net Earnings: Deduct Wildberries’ commission and fees from the selling price to estimate your profit margin.

Formula:

Net Earnings=Selling Price−(Wildberries Commission+Other Fees)\text{Net Earnings} = \text{Selling Price} – (\text{Wildberries Commission} + \text{Other Fees})Net Earnings=Selling Price−(Wildberries Commission+Other Fees)

Consider Your Cost of Goods Sold (COGS)

COGS includes all expenses incurred to produce or procure your product, such as:

Manufacturing Costs: Material, labor, and overhead costs.

Procurement Costs: Supplier charges and shipping expenses.

Packaging: Costs of packaging materials and labeling.

Key Tip: Always include hidden costs, like currency conversion fees or customs duties, to avoid underpricing.

Add Operational Expenses

Operational expenses can vary depending on your business model and scale.

Storage Fees: If you store products in Wildberries’ warehouse, factor in these charges.

Marketing Costs: Allocate a budget for Wildberries’ internal ads or external promotions.

Administrative Costs: Include expenses for staff, software subscriptions, and logistics management.

Breakdown Example:

COGS: $10

Wildberries Commission: 15%

Storage Fees: $0.50 per unit

Marketing: $2 per unit

Total Cost = $10 + $1.50 (commission) + $0.50 (storage) + $2 (marketing) = $14.

Research the Market

Analyze competitor pricing to position your product effectively.

Direct Competitors: Look at products similar to yours in terms of quality, size, and brand value.

Seasonality: Adjust prices during peak seasons, holidays, or sales events like Black Friday.

Tip: Use Wildberries’ analytics tools or third-party platforms to monitor competitor trends.

Factor in Desired Profit Margins

Your pricing should include a profit margin that aligns with your business goals.

Standard Margin: Many sellers aim for a margin of 20% to 50%, depending on the product and industry.

Strategic Pricing: For new products, you may opt for lower margins initially to build customer trust and reviews, then increase the price later.

Formula:

Selling Price=Total Cost+(Total Cost×Desired Profit Margin)\text{Selling Price} = \text{Total Cost} + (\text{Total Cost} \times \text{Desired Profit Margin})Selling Price=Total Cost+(Total Cost×Desired Profit Margin)

Example with a 30% margin:

\text{Selling Price} = $14 + ($14 \times 0.30) = $18.20

Use Dynamic Pricing Strategies

Wildberries’ marketplace is highly competitive, so dynamic pricing strategies can help you stay ahead.

Promotions and Discounts: Periodically lower prices to attract buyers during sales events.

Volume Discounts: Offer reduced prices for bulk purchases to increase sales.

Bundle Offers: Combine products to provide better value and move slower inventory.

Regularly Review and Adjust Prices

Wildberries operates in a dynamic environment where market trends and platform policies evolve.

Competitor Monitoring: Keep track of competitors’ pricing changes and adjust accordingly.

Customer Feedback: Monitor reviews and ratings to understand if your pricing aligns with customer expectations.

Platform Updates: Stay informed about any changes in Wildberries’ commission rates or fees.

Utilize Pricing Tools

Leverage technology to simplify pricing calculations.

Wildberries Seller Tools: Use Wildberries’ analytics and dashboards to monitor sales performance.

Third-Party Software: Platforms like Seller Assistant or PriceLab offer automated pricing optimization based on real-time market data.

Conclusion

Pricing products on Wildberries requires a strategic approach that balances costs, competitive positioning, and profitability. By understanding the platform’s commission structure, accounting for all expenses, researching the market, and regularly reviewing your prices, you can create a sustainable pricing strategy that drives sales and grows your business. Remember, the key to success on Wildberries is not just about setting the lowest price but delivering value to customers while ensuring profitability.

Read-/services-for-a-marketing-director/

Subscribe to the Twitter channel Open

not to miss new materials: Hayqsystem