Let’s say you sell shoes on Shopify for $100 and want to test $110. You’d 1-click install the Jika Shopify App and go to a dashboard where you select and start a test for $110. We then handle the heavy lifting of showing price A to 50% of your visitors and price B to the other 50%. As the test is running, Jika keeps track of revenue, conversions, and visitors at each price point. You’d repeat this process as much as you can since the optimal price for a product is always changing.
Up until now, most people have priced off competitors, but that doesn't cut it anymore with big companies getting more and more sophisticated. A prime example of this is Amazon accelerating their development of in-house brands (~640 in late 2019) and using their dataset to outprice other online sellers (2.5m price changes per day in 2013 and more today).
One recent test of a best selling product for a Shopify brand doing 1M+ monthly revenue resulted in a data significant ~10% revenue lift from a -7% price. This better price for the best selling product translates to a ~30k+ monthly revenue increase (~180k+ revenue over 6 months).
I chose to work on pricing because I love optimization. Past optimization includes dropping out of college after 1 year to be a growth (A/B testing) engineer at Pinterest for 3 years and building an app for discounts + promotions at Hulu. In high school, I also optimized enough to be a top 200 player in League of Legends.
Would love to answer any questions or comments below!
PS. If you know anyone on Shopify, I'd love to help them nail down their pricing. :D
by Andrey
Azimov