How Your Ecommerce Platform Can Price Strategically

Starting an eCommerce store comes with plenty of challenges. From the logistical complexity to shipping products, there is perhaps no challenge as daunting as the competition. In today’s episode of the MORE podcast, Ricardo is joined by Paul Kirch, CEO of Sellience, to explain a tool that helps small eCommerce stores stay competitive in the virtual marketplace: Cartfeeder.

Paul always wanted to start his own company.

• He eventually negotiated out of his sales contract and started a company doing sales and leadership consulting. However, it quickly transitioned to a marketing company because that’s where the demand was.
• Paul had started a radio show that eventually morphed into a podcast, and it ended up becoming a top 10 business podcast. While it has since been retired, it provided Paul a litany of knowledge to fuel his business.
• His digital marketing agency is Sellience, which focuses on marketing that drives sales, not just leads.

Operating an eCommerce business comes with many challenges.

• You’re going up against major companies that dwarf every small business owner.
• The problem with Shopify is if you’re operating on small margins. Setting prices either equal to or more expensive than Amazon will lead people to just go with Amazon. However, operating on small margins can be challenging since Shopify takes a portion of each transaction. 
• Paul created Cartfeeder, designed to give small business owners an eCommerce store that benefits them and maximizes profit.
• Before Cartfeeder, the other tool or solution was just to have static pricing. And that pricing was based on traffic to the site.
• Amazon uses a similar strategy (called Spiders) that tracks eCommerce pricing for similar products and will make an attempt to undercut you in price. 

A  quick case study: Amazon vs. diapers.com

• Amazon wanted to get into the diaper space, so they approached diapers.com and asked if they wanted to sell. They refused.
• Amazon started undercutting, offered free shipping, and providing other products catered towards mothers.
• Diapers.com approached Walmart and tried to sell. 
• Amazon, over one quarter, was willing to lose 100 million in revenue to squash diapers.com. And Amazon ended up buying diapers.com.
• The takeaway? Large companies have tremendous power to stay one step ahead of smaller companies. And this tool will give some of that power back to the small business.

How to get started using Cartfeeder

• Shopify has changed the game for a lot of small businesses. But they take a portion of your sales to stay in business, which isn’t the best option for companies with small margins.
• Go to Cartfeeder.com to check it out and receive a free audit to ensure you have the suitable systems currently in place.

Paul’s book and podcast recommendations:

• He is the co-host of a room with a group called Co-Founders Lab on Clubhouse.
• Getting There: A Book of Mentors by Gillian Zoe Segal 
• Co-Founders Voice is a podcast about to launch that brings tools, tips, and strategies for people in the early startup stage. Follow Paul on LinkedIn to know when it officially starts!

Getting There: A Book of Mentors by Gillian Zoe Segal 

Co-Founders Voice is a podcast about to launch that brings tools, tips, and strategies for people in the early startup stage. Follow Paul on LinkedIn to know when it officially starts!