The cost of merchandise is one of the biggest factors in driving sales. A great example of the power of effective pricing is the fact that fans buy tees under $25 twice as often as those over $25. 


8 of the 10 top-selling shirts sold via Spotify were under $25. If you look at the top 50 items sold via Spotify artist profile listings, 42 of the top 50 were under $25. 


This price point is so crucial that 85 percent of the best selling product referrals from Spotify was less than $25. Using this kind of data and tracking to your advantage is key in maximizing profit. 


The margin may be smaller, but the overall profitability grows. Reducing merch production costs, if possible, is something to consider to help make pricing adjustments.


Keeping the cost of shipping to $5 or less is key.

Shipping that costs a single dollar over $5 can be attributed to a decrease in checkout conversions by 20 percent.  Another major factor that obliterates customers finalizing their order is when the cost of shipping is higher than 20 percent of an item’s cost. Shipping costs remain one of the biggest factors for online shoppers.

Even if you need to keep the final pricing the same, shifting pricing between the item and shipping can have a significant impact on conversions and sales. The chart below is a quick overview of shipping costs vs. product cost balance:

We encourage you to consider the impact of lowering shipping costs to $5 or less in order to increase sale conversions overall. Ideally, we want to offer customers free shipping after a certain order total. Keep an eye out, as that’s an important subject our team will be in touch to discuss in the future.

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