Pricing your product is one of the most crucial steps to the success of any ecommerce store, whether you’re based in Lebanon or abroad. It could genuinely be the deciding factor between losing money and making money.
“How should I price my products?” is something everyone asks. The answer isn’t simple. Price too low and you’re losing money, price too high and no one’s buying.
What you actually need is the sweet spot where you get the most profit, and that’s not necessarily the same as getting the most orders.
Start with your real costs
To find that sweet spot, you first need to understand your unit cost, your ad cost, and any other hidden costs like order cancellations, returns, and so on.
For example, let’s say your product costs $2 per unit, ready to ship and packaged. Your cost per acquisition via Meta is around $8. That’s already $10 in cost.
Now factor in 10-20% extra for hidden costs, plus $1-2 in Meta fluctuations, and you’re looking at around $12 in total cost.
So should you price it at $15? Maybe $20? Maybe $100?
Know your breakeven, and where NOT to price
The goal is to get the most out of the sale without hurting your profit, that’s what “finding the sweet spot” really means.
The most important thing is understanding your breakeven and knowing where not to price. In the example above, that means definitely not $10.
Find your starting point
Where you start really depends on your positioning, branding, and the market you’re in. There’s no universal number, you have to test to find it.
A/B test your way there
This means sending traffic to the same product at different price points and seeing which one actually makes more profit, not just more sales.
For example: send some traffic to a product priced at $16, and some to the same product priced at $18. See which one wins.
Let’s say $18 wins. Now test $18 against $20, and keep going until you land on the price and offer that actually works best for you.
Pricing isn’t something you set once and forget. It’s something you test, adjust, and refine until you find the number that makes you the most money, not just the most sales.
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