How Negotiation Can Boost Your Sales and Margins

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image:money.howstuffworks.com

Negotiation in markets have existed since the inception of trading itself, as early as the trade-by-barter era. Thats for a reason - it brings merchants new sales and customers which would likely have missed without it, while also keeping customers happy.

Today a whopping 92% of us shop online, and giants like Amazon are having over half of that business leaving little room for small players, who needs to put in an enormous amount of effort to bring in new visitors. They pay for Ads just to have the potential customer land in their site, pay for content and an experience to delight them, and then lose them in the click of a button to a site selling for $1 less.

Negotiation boosts conversion and builds trust

Negotiation provide both parties with some control, and initiates a valuable dialogue between buyer and seller. This not only helps in finding an agreeable price that benefits both sides, the buyer will also establish a level of trust about the product and the seller. And a seller can engage with a customer they might have ultimately lost in an instant to comparison shopping online.

It is estimated negotiation can boost seller conversion rates by 25% and save buyers on average 14% more than posted prices, resulting in significant increase number of transactions, would not have happened without the ability to engage the shopper in a negotiation.

Instead of instantly losing a customer for price, negotiation helps open a conversation with the customer - kicking off the engagement, helping conversion, raise margins, and customer relationship. Just as it is doing for ages.

Better profit margins

Online retailers are suffering from the shifting and seemingly impossible-to-navigate dynamics of discount pricing. Whats the base to decide the right discount? How do the seller know if the price of a “deal” is leaving money on the table, or is right outside a buyer’s budget?

When retailers give them a chance to make an offer – the shopper is more likely to place a higher offer to secure the discount. This creates a win-win for both parties: The buyer get a sense of achievement with the discounted price, and the retailer gains a sale at a reasonable profit, and better yet, a potential customer relationship.

Repeating customers

Majority of the customers shopping online are price-sensitive. Once the seller manages to get them to close the sale with negotiation, it acts as a motivator for the customer to visit back during their next purchase. Leading to self-repeating customers with increase in engagement & sales - along with valuable insights into customer behaviour & creating customer relationship.

The new negotiation approach to e-commerce that has already been adopted by leading retailers has a huge potential today and for the years to come.

It enables independent sellers to ensure they maintain healthy profit margins, consistently drive higher conversion rates, and gives customers the opportunity to actively engage to secure a discount.

We built Lury to enable this age-old but ever-green strategy to help independent sellers take advantage of it. If you are a Shopify store owner, big or small, this is your opportunity to open a dialogue with the hard earned visitor and turn them into repeating customers.

Try it out at Shopify app store now! https://apps.shopify.com/lury

Due to the nature of negotiation strategy that is focused on bringing in sales, we do not charge monthly subscription for having this feature on your store. We only take a fair 1% of the sale that is finalized through negotiation and is fully paid. No other charges or hidden fees.