5 Effective B2B Ecommerce Pricing Strategies

Pricing is one of the biggest contributing factors to success in the B2B world.
5 Effective B2B Ecommerce Pricing Strategies

Get the prices right, and your business will be efficient and profitable. On the other hand, if your pricing strategies and methods are not comprehensive, you could be leaving too much value on the table. 

Leveraging different pricing options ensures that you capture your entire market, giving you an edge over your competition. 

Let’s dig deeper into the most effective strategies that can catapult your B2B eCommerce site to greater heights. 

Multiple Tier Pricing

Tiered pricing options with discounts

Having one price point often leads to losing value. Your price can either be too high, driving price-sensitive buyers away, or be too low, which reduces your profitability. Either way, having a fixed price doesn’t optimize your returns. 

Instead of a fixed price, you can explore a multi-tiered pricing approach that accommodates different buyers.

Multiple tiers help you to:

  • Cater to a wider spectrum of buyers. The businesses you sell to pay different prices depending on their size and budget. By offering tiered pricing, you can reach out to the entire market across various price sensitivities.
  • Personalize discounts. For instance, you can display two- or three-tiered discounts based on the quantity of product a business buys from you. 

  • Implement dynamic prices where you charge customers differently for the same product. For instance, you can sell at higher or lower prices based on demand and supply.

Expert Tip: For your multi-tier approach to become more effective, avoid having too many pricing options. Most companies choose three or four price points. 

Going overboard leads to a paradox of choice. The more options you present to buyers, the more likely they are to suffer from indecision, often leading them to choose a less complicated competitor. 

Here’s an example of a simple three-tiered pricing list for a fictional company, XYZ Safety Shoe Supplier:

ecommerce price strategy

Needs-Based Pricing

A needs-based approach tailors your prices to match the specific needs of your customers. 

For instance, you can set a per-user shipping price that depends on the shipping distance and buyer’s location. The farther away the buyer is located, the higher the price will be to make up for the additional cost. 

You can also adopt a group pricing strategy in which you categorize buyers based on certain features and create different prices for each. For instance, you can have one group for repeat buyers, another for tax-free companies, etc. 

Once you classify your buyers, you can set different price levels. For example, repeat buyers get bigger discounts or longer payment terms. 

Different pricing structures and discount levels allow you to draw as much value as possible while building relationships. 

Statistics show that 80% of buyers expect a consumer-like approach. So, solidifying relationships by meeting your customers at their point of need can go a long way in retaining customers. 

Value Pricing

Quote on marketing technologies that rely on value pricing


Value-based pricing focuses on an exchange of value. You identify, in monetary terms, the value that your product brings to your customers and make that your price. 

It allows you to get as much as you can out of your customers in exchange for giving them the maximum value. 

The value approach:

  • Removes caps and limitations on your prices; you can theoretically charge as much as possible. 
  • Drives you to keep improving or upgrading your product to maintain its value, which simultaneously buoys your competitive advantage. 

So how do you determine the best prices? 

Thorough Research and Analytics 

Since your prices are entirely based on the product’s perceived value, you will need extensive research to determine your customer’s pain point and how your product solves those issues.

Value-based prices always reference a particular segment or customer. Once you double down on the specific target market, you can put a dollar amount to the value your product provides to them. 

If you’re dealing with multiple customer segments, you need to set a different price for each one. 

Consider investing in data analytics to unearth customers’ pain points, determine how much value your product will bring, and predict how much customers are willing to pay.

Next Best Alternative 

Prices seldom work in isolation, so before you set your final price, compare with the nearest alternative substitute for your product. Your prices should fall within a reasonable range with comparable substitutes. 

If your price far outpaces your nearest competitor, you’ll have a harder time convincing buyers of your product’s value. 

Basing Prices on Competitors

In heavily competitive markets, the best pricing strategy focuses on protecting your margins.

You can maximize your market share by lowering your prices when launching a new product. Then, gradually increase the price to keep your margins intact. 

You can also explore other options to keep a tight leash on margins, such as:

  • Avoiding unnecessary giveaways and promotions 
  • Segmenting your product offers per market segment, i.e. have different products for each segment
  • Using one product or service as a loss leader and cross-selling more profitable products to the same customers to capture more value

For cutting-edge and high-end products, you can also consider skimming instead of using penetrative pricing. Here, you offer your product or service at a higher rate to attract early adopters and higher-end buyers. Then, lower the price for the rest of your market segments. 

Note: Using the competitive approach comes with a risk, especially if you are up against strong competition. If competitors retaliate, you may be drawn into a nasty price war, which can destroy your bottom line. 

So use competitor pricing techniques with caution and only as a short-term measure. 

Tactic-Based Pricing

Under a tactics-based approach, you use a range of tactics for setting your prices, such as: 

Anchoring Prices

The anchoring strategy involves setting a reference price to lead the buyer’s decision-making.

For instance, if you’re selling a $500 product, say a filing cabinet, you can feature it as an add-on to a $5,000 office suite. By anchoring buyers on the $5,000, $500 looks inexpensive and therefore more acceptable.

Decoy Products

Decoy pricing involves creating a cognitive bias that lures buyers by making the product appear more valuable than your other offerings. 

Say you are selling cutlery bundles for restaurants. The table below shows an example of decoy pricing. The difference between the two bundles is minimal, making Bundle B a better option.

bundle ecommerce pricing

Free Offers and Discounts 

Behavioral economics suggests that buyers respond positively to free offers and discounts. 

A free offer gives buyers a chance to try the product. Once you show the value that your offering has to offer, they’ll usually be happy to pay the full price.

You can also consider using a zero-price offer but recoup your costs via shipping. 

Achieving the Best Pricing Strategy 

There’s no single best approach to pricing. That’s why a multifaceted approach is often best to glean the most value. 

Consider a combination of pricing strategies and tactics

For instance, you can use a value-based, three-tier pricing approach with discounts for frequent buyers. 

Remember to keep your prices dynamic, and most importantly:

  • Always evaluate the impact of your prices on the bottom line, and be ready to pivot if you need to
  • Keep testing different options
  • Use predictive analytics to determine your product’s value
  • Listen to feedback from your customers

That said, you’ll need a flexible and easy-to-manage eCommerce website to stay on top of your pricing. 

That’s where Uncap comes in. 

We can help you design and build a conversion-focused eCommerce site that's: 

  • Easy to navigate
  • Free of technical headaches
  • Optimized for eCommerce metrics
  • Mobile friendly
  • Suited for a range of price options, such as tiered or group pricing
  • Designed for easy quoting and managing big catalogs

We'll also make sure migrating all your information and carts to our Shopify Plus-based site is a breeze.

Whether you're building, upgrading, or redesigning your site, talk to us to take your B2B eCommerce site to the next level.

“We're very happy with the result - our site looks great, works well, and is exactly what we had in mind. Would recommend Pivofy highly.”
Kim Misrahi, Marketing Manager @ Kalorik

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