5 ms·
I've done substantial amounts of a/b testing and experimentation around ecommerce pricing and it's pretty rare for a maxim like "show your costs to boost sales"
by ssharp 5y ago
I've done substantial amounts of a/b testing and experimentation around ecommerce pricing and it's pretty rare for a maxim like "show your costs to boost sales" to hold to in either 1) the long run or 2) across multiple product types, audience types, brands etc.
Especially with something relatively novel like this, results are very prone to bias since novelty has the tendency to increase purchase-intent in the short-term.
As far as audience, I'd say the audiences of folks interested in a $115 wallet, Harvard students, Everlane/J Crew shoppers, and craft cocoa buyers are on the more affluent and/or intelligent side, which may compound the novelty effect or at least have the transparency resonate more.
- xgulfie 5y agoYeah, seeing the cost breakdown for luxury goods like this feels totally different than for seeing one for other things, like a bottle of Coke or a handmade good from Etsy.
- mistersys 5y agoYeah I don't think a cost breakdown on my drop ship products on Etsy would increase sales. We roughly double the price vs. cost of goods, but it's not like we're rolling in dough because at our volume fixed expenses take up a really significant amount of our profit.
- therealdrag0 5y agoWhat if you amortized your fixed costs (equipment?) over expected life span and included that in the breakdown?
- moneywoes 5y agoWhat do you find works best