Looking for established ecommerce merchants (revenue over $500K per year) who've recently raised prices to share how the increase has impacted consumer behavior. Specifically:

- Have you raised prices on your products this year? When and by how much?
- What customer trends have you seen following these price increases? I.e., fewer purchases, more customers waiting for deals, higher return rate?
- What differences have you seen for everyday purchases as opposed to impulse purchases?

Selected responses will be added to an expert roundup to be featured on the "In the Loop" blog from Loop Returns.

Question

Looking for established ecommerce merchants (revenue over $500K per year) who've recently raised prices to share how the increase has impacted consumer behavior. Specifically:

- Have you raised prices on your products this year? When and by how much?
- What customer trends have you seen following these price increases? I.e., fewer purchases, more customers waiting for deals, higher return rate?
- What differences have you seen for everyday purchases as opposed to impulse purchases?

Selected responses will be added to an expert roundup to be featured on the "In the Loop" blog from Loop Returns.

Lord Robert Newborough · Accepted Answer

We made a careful decision to raise prices this year in line with rising costs in many areas. At first this led to a short slowdown in sales but activity returned to a steady pace after some time. Some customers now plan their purchases to match special events while many continue to buy as they always have. The rate of returns did not rise which shows that trust in our brand remains strong.

What has changed is how customers think before they buy. They are now more thoughtful and selective in choosing products that meet their needs and reflect what matters most to them. They focus on items that align with the values they associate with our name showing a shift toward more intentional buying.

Hans Scheffer · Answer

We didn't increase prices this year. We actually strengthened our Best Price Guarantee by using real-time market tracking to provide customers with the best price. Here's how that works. So, we'll match and beat any other competitor's lower price for the same specifications, quantity, turnaround time, and material, providing peace of mind without sacrificing quality.

Customers just trust us on this and move ahead when prices can vary naturally due to variations in manufacturing, materials or exchange rates. Unplanned buying will temporarily stop, but daily sales provide constant demand. Our open pricing allows customers to feel comfortable to modify specification or time rather than abandoning the purchase.

Carlos Nasillo · Answer

One of the things we did in March was increase the price of motorcycle rentals 20% across European markets, which was largely driven by rising insurance costs and something that was becoming difficult to absorb. Because overpriced made us the premium safety option in a market filled with sketchy operators - and our booking volume actually increased by 12% which is not what you'd expect from traditional e-commerce logic.

It was interesting the shift in customer behavior. It response to the pandemic by causing average rental times, but not fewer booking. This the same type answer you would hear nearly every day, these hikes justified in their daily rate by turning weekend trips into weeklong benders — stretching that few-a-day premium out over a longer period. Customers were viewing motorcycle tours as marquee, aspirational experiences and, therefore, not shopping by price across multiple vendors; our AOV grew 35% — it felt like a two-sided win.

The largest divergences were seen in impulse versus planned purchases. Spontaneous weekend renters were down 25% —no one wanted to pay a premium for that sort of last-minute purchase. However, bookings for scheduled vacations are taking place because motorcycle travelers who plan tours months in advance prioritize safety over savings when it comes to the big impact trips. It was actually a good thing that our customers had to pay more as it successfully weeded out other troublemakers who viewed us purely as bargain transport, rather than adventurer seekers.

I was surprised by a demographic chnage. As a result of these changes, we no longer attracted the young customers who were more price-sensitive, but instead found an older customer base with higher disposable income but also operating standards and customer service. These individuals file fewer complaints about the service and are more likely to book a second time. Since sometimes hiking your prices can enhance the substance of your customer base more than your present income.

2 Answers

Lord Robert Newborough

Hans Scheffer

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2 Answers

Lord Robert Newborough

Hans Scheffer