How dynamic pricing works
The dynamic price consists of modifying the displayed price according to the country of the customer.The total price of the creation (price + shipping) does not change however, part of the shipping price will be included in the price of the product.
This is the reason why different prices can be displayed depending on the location of the buyer.
The objective is to naturally make your product more attractive and increase your sale.
The following rules are applied in order and on the last calculated rate:
- The price of the shipping cost of a product can not exceed 20% of the price of the product.
- The price of the shipping cost of a product can not be higher than the psychological ceiling of the currency of the product price (10€, 10$, 8£ 5000 FCFA, 4000 Naira)
- The price of the shipping cost is included in the price of the product when it is less than, depending on the currency of the product 5€, 5$, 4£, 2500 FCAF, 2000 Naira.
The dynamic price has no effect on the sellers but on buyers.
The structure of the dynamic price forms an advantage for your shop as it simplifies your life.The calculation of the shipping price is automated and harmonized to boost your chances of selling more. In fact, we have implemented this functionality to reduce the amount of abandoned carts at the payment stage, when the customer realizes that the delivery costs are high.
The following screenshot shows an illustration of the actual display of the dynamic price effect on an aticle.
1. The real price of the dress = 64.44 euros
2. The cost of shipping = 14.51 euros
3. Part of the shipping cost is added to the price of the dress = 69.88 euros