Which strategy is better when starting an eCommerce site: lower prices than competition or value add?


I'm looking to buy electronics (unlocked phones) from a wholesaler and sell them online.

What's a better strategy to compete with other sites selling the same product?

  • Should I lower my margins and sell at a lower price to attract customers?
  • Or should I figure out other ways to add value to the shopping experience so that I can keep higher margins (charge more for the product then the competition)?

Strategy Ecommerce Competition Shopping Margin

asked Jul 7 '14 at 21:25
Morgan Barra
2 points
Top digital marketing agency for SEO, content marketing, and PR: Demand Roll

2 Answers


I am not sure what part of the world you are in, but I understand this is / was a quite crowded space (unlocked mobile phones) - However I am sure you can make it a success.

1. Yes you could lower your margins, which could attract new customers. However. You are a business and the purpose of a business is to make money. Otherwise you will be underwater within weeks. Once a business drops their prices, it is very hard to increase them again at a later date. I also see price competition as the very final straw for gaining market share and keeping your business afloat!

2. What I would suggest you do is the following:

a) Take your own photos, perhaps on a wooden table (very in right now) and avoid those cheap, generic photos on white backgrounds. Take some photos of people using them, on the coffee table. Keep it natural.

b) Nobody actually cares about the frequencies, and all the numbers and tech specs that come with phones. They care about what it can do! Look at how apple sells their iPhones on their website, and you will get an idea of how you might achieve this. EG: if the phone has a great camera, say that and then upload a photo, taken from that phone, proving it.

c) Video reviews / unboxing - These are a great way to gain traffic from Youtube and other sources, it also makes you look like you know all about your products, and you aren't just importing them to make a quick dollar.

In short, don't use pricing as your method for gaining competitive advantage. Ensure that your products are great, your website looks great, your content is awesome and engaging and real, and that your customer service is top notch!

I hope this gives you a few thoughts, best of luck!

answered Jul 7 '14 at 22:04
251 points


Don't lower your margins, e-commerce is tricky to begin with, lowering your margins will put you at even a greater risk of failure. Provide excellent service over everything and you will be referred to your customers friends.

answered Jul 9 '14 at 04:30
Josh Hagler
1 point

Your Answer

  • Bold
  • Italic
  • • Bullets
  • 1. Numbers
  • Quote
Not the answer you're looking for? Ask your own question or browse other questions in these topics:

Strategy Ecommerce Competition Shopping Margin