This document provides an overview of strategies for pricing and promoting products across multiple sales channels. It discusses the importance of price parity, using promotions like discounts and free shipping, selling on marketplaces, and promotional value cards. It also emphasizes the need for brand marketing and collaboration between marketing and ecommerce teams. The goal is to drive sales while maintaining a strong brand presence online and across channels.

2. Channel Friendly Commerce:
How to Price & Promote Your
Products in a Multi-Channel World
Allied to Win Tour 2014

3. Introduction
Greg Squires
VP, Client Success
Shopatron, Inc.

4. Channel Conflict

5. Agenda
Drive sales through:
➤ Price parity
➤ Promotions
➤ Marketplaces
➤ Promotional value cards
➤ Powerful brand marketing

6. Brands’ Approaches to Pricing

7. Brands’ Approaches to Pricing

8. Brands’ Approaches to Pricing

9. Online Price Parity Is Paramount
Channel Disparity Parity
Brand’s Website $219 $199
Amazon $179 $199
eBay $169 $199
Big Box $189 $199
Specialty Retailer $199 $199

10. Product price varies during its life cycle
A product’s position in its lifecycle
will influence pricing strategy

11. Agenda
Drive sales through:
➤ Price parity
➤ Promotions
➤ Marketplaces
➤ Promotional value cards
➤ Powerful brand marketing

12. Promotions: Offer Free Shipping
➤ Persistently offer free shipping
➤ Shoppers expect it.
➤ The 2nd most common reason
for leaving a site, behind price.
➤ Offer at a threshold near
average order value

13. Promotions: Get creative
➤ Gift with purchase
➤ Add value to the sale
➤ Product bundles

14. Promotions: Test Discount Offers
➤ Attract new customers. Develop loyalty.
➤ Case Study: Testing 3 Unique % Off Promotions
➤ Which one performed the best?
10%
OFF
15%
OFF
20%
OFF

15. Promotions: Test Discount Offers
➤ Attract new customers. Develop loyalty.
➤ Case Study: Testing 3 Unique % Off Promotions
➤ Which one performed the best?
10%
OFF
15%
OFF
20%
OFF
50% More Revenue than the 10% Off
Promotion
28% More Revenue than the 20% Off
promotion

16. Promotions: Flexible Fulfillment
When an order has a promotion applied,
brands have options:
1. Brand ships direct
➤ Auto-assign to manufacturer
2. Dealers ship
➤ Stores have choice to request order
3. Dealers ship and are reimbursed
➤ Brand subsidizes promotion

17. Agenda
Drive sales through:
➤ Price parity
➤ Promotions
➤ Marketplaces
➤ Promotional value cards
➤ Powerful brand marketing

18. Marketplace strategy affects a brand’s
online sales
How Brands Manage Amazon:
1. Limit Amazon’s product mix
2. Maintain tight pricing control
3. Manage 3P (Third Party) Sellers
* VERO: eBay’s Verified Rights Ownership program
How Brands Manage eBay
1. Limit # of dealers selling
2. Use VERO* to manage pricing
3. Take full control of eBay sales

19. Easily Extend Your eCommerce Into New Channels
Consumer places
an order on eBay.
The order is sent to the
Shopatron order exchange.
The closest participating
retailer is assigned the
order or it is fulfilled by
the manufacturer.
Consumer receives the
order via shipment or
in-store pickup

20. Make eBay Your Own Channel
Shopatron merchant: Consumer electronics
1. “We cleaned up our distribution channels”
2. Stopped unauthorized eBay activity
3. Launched branded eBay store
4. Increased dealer-fulfilled revenue by 85%
Prior year Current year
eBay Sales
Website Sales

21. Case Study
➤ 2 Powersports brands selling apparel & accessories on eBay
eBay Customers are a Unique Bunch
* Study based on July-December 2013 eBay sales for powersports brands selling through Shopatron. Customer email
addresses were compared to assess new or returning customers.
90%
Over 90% of eBay buyers had not
purchased from the brand’s website.

22. Agenda
Drive sales through:
➤ Price parity
➤ Promotions
➤ Marketplaces
➤ Promotional value cards
➤ Powerful brand marketing

23. Game Changer: Promotional Cards
Powerful tool for online sales
➤ Offer attractive pricing without discounting product
➤ Opens a new ecommerce revenue stream

24. ➤ A payment method in checkout (Not a promo code)
➤ Shoppers perceive these as discounts
➤ Brands don’t reduce price below MAP
Effective Online Pricing

25. Send special offers to:
➤ Under-engaged customers
➤ Prospective customers to
grow your following.
➤ Loyal customers to encourage
repeat purchase
Re-engage and grow your customer base
Dear Shopper,
We want to thank you for being a loyal
shopper on our website.
Below is a $100 voucher for your
next online purchase.
Code: 1234567891234567
Pin: 1234
Valid through May 1st, 2014

26. ➤ Perfect for new product launches
➤ Special “pro” and “insider” deals
➤ Use at tradeshows or industry events
➤ Supports $0 order (Customer pays nothing)
Give products to customers through rebates
or giveaways

27. ➤ Appease customers with promotional value codes.
Turn customer appeasement into customer-retention
Dear Shopper,
We sincerely apologize for your
lost shipment. Below is a $20
voucher for your next purchase
at our website. Thanks for your
understanding.
Code: 1234567891234567
Pin: 1234

28. Independent Studies Show:
➤ 72% of card recipients will come back to shop again.
➤ Shoppers spend an average of 40% more than card value
Shopatron 2014 Case Study:
➤ $15 codes distributed
➤ Average customer spent $27
➤ Shoppers spent 80% more than card value.
Gain Incremental Sales

29. Promotional Cards
Promotional Cards are different from gift cards and promo codes:
Promotional Cards Gift Cards Promotion Codes
Payment Method Payment Method Discount Code
Can Expire Never Expires
(Escheatment Liability)
Can Expire
No Stored Value Stored Value No Stored Value

30. Agenda
Drive sales through:
➤ Price parity
➤ Promotions
➤ Marketplaces
➤ Promotional value cards
➤ Powerful brand marketing

31. Powerful Brand Marketing
Brand marketing aims to:
➤ Define brand identity
➤ Develop brand equity
➤ Drive brand loyalty
Great brands do this through:
➤ Content
➤ Engagement
➤ Growing brand following

32. When Marketing & eCommerce Teams Work
in Silos, Online Sales Suffer
MeasurabilityLow High
Drive Brand
➤ Brand Image
➤ Sponsorships
➤ Engagement
➤ Social Media
Drive Sales
➤ Search Engine Marketing
➤ Traffic Generation
➤ Conversion Lift
➤ Promotions
Brand Marketing eCommerce

33. Collaboration Drives Brand & Sales
Drive Brand
➤ Brand Image
➤ Sponsorships
➤ Engagement
Drive Sales
➤ Search Engine Marketing
➤ Traffic Generation
➤ Conversion Lift
Brand Marketing eCommerce
Drive Both
➤ Content marketing
➤ Email marketing
➤ Social Media
➤ Promotions
MeasurabilityLow High

34. Brands Who Win Understand Customer Acquisition
High
Low
Brand
Exposure
Low
High
Purchase
Intent

35. Conversion Funnel
• Peavey amplifiers
• Peavey guitar amps
• Peavey electronics
• Peavey revalver mk iii
• Peavey online store
• Peavey.com
• Amplifiers
• Guitars
• Microphones
• Professional bass amp
• Parlor acoustic guitar
• Tom microphones

36. Recipe for Success
Assessment Under-performers Top performers
Top Priority Dealers Consumers
Online Sales Goal None Defined & Measured
Website Purpose Show Product Sell Product
Website Pricing MSRP MAP
Channel Control Weak Strong
Run Promotions Rarely Periodically
Ecommerce as % of
Company Sales
< 1% 5%+

37. Thank You.
Greg Squires
VP, Client Success
Email: gsquires@shoptaron.com
Phone: 805-269-5147