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4 global pricing strategies for selling internationally

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Expanding your business to sell internationally is a big step for any company. It brings with it endless possibilities – a new market, more customers, less reliance on one country – it can be a solid business plan for many ecommerce entrepreneurs

And, with the rise of cross-border ecommerce (the act of selling goods in other countries), the growth of the internet has undoubtedly made it easier for businesses to sell internationally. Products can be shipped in just a few days to customers all over the world and customers expect and can expect the same experience as someone shopping within their home country.  

Although the Internet has empowered businesses of all sizes to sell their products to countries all over the world, the process of selling overseas comes with a lot of uncertainties – none more so than managing your global pricing.  

Modern consumers are financially worse off than their parents and they’re even more price-sensitive than older generations. So, how does this impact their shopping behavior? But more importantly, can we change their behavior? Despite the emphasis put on business value, convenience, or personalization by marketers in recent years, price is still the most important weapon, if you know how to use it… 

We’re going to share four global pricing strategies that influence shopper behavior in an international e-commerce environment. But first, let’s take a look at the modern consumer.

What today’s shopper wants

To put it mildly, they want it all. Millennials have much less discretionary income than their parents. Yes, they want personalization, the perfect customer service, the fastest shipping possible, etc. But, the problem is, they want it all at the best price and they’re not about to compromise on that.

However, they are willing to share personal data in exchange for personalized shopping experiences and personalized offers. Your job is to collect and analyze this data and integrate your findings into decision-making.

So, let’s take a closer look at 4 global pricing tactics that correspond to the modern consumer. 

Personalize your offer

One great advantage of online retailing is the ability to segment large audiences and target each at different prices. And, this often makes sense when selling internationally. Customers differ in their willingness to pay for a product, and there’s no reason why you wouldn’t attract them at the price they’d accept.

Of course, no one likes to pay more money for an item than others. In 2000, Amazon was caught price discriminating based on the browser type shoppers used to purchase DVDs. Facing harsh criticism, Jeff Bezos had to explain it was a mistake and the company would never discriminate based on consumer demographics.

The question is, how can you segment your audience, target them at different price points, and make sure they’re not alienated?

By personalizing your offers. If your prices/discounts are tailored for individuals, instead of large groups of people, they won’t disturb other shoppers.

Offering your discounts in the checkout process or sending them via email with personalized discount codes is a great option. 

Shipping internationally is of course more expensive than shipping within your home country and you’ll likely need to increase the shipping cost per country. Offering special discount codes or free delivery on the first purchase can be a great way to alleviate the prospect of this cost for the consumer and help them convert. By displaying them privately, you avoid the risk of alienating customers.

Offer basket-based discounts

Basket-based discounts are personalized offers based on shoppers’ purchase history and their real-time data on a website. Real-time data reveals the products an individual is interested in, yet the price is above what they’re willing to pay. Purchase history gives you a clue on their willingness to pay for a product and the previous discounts that attracted them.

Based on your findings, you can offer them products that they’re interested in with a discount that’ll likely convert the potential customer.

Basket-based pricing can add incredible value to your business for several reasons.

First of all, you significantly increase the likelihood of purchase by offering tailored discounts on truly desired products.

Moreover, you can incentivize shoppers to buy additional products to increase basket size.

Hyperlocal marketing becomes increasingly popular for a reason. Shoppers all around the world differ in their buying behavior.

Analyze real-time data to understand how your international customers differ from each other in terms of their interests, purchasing powers, consumption habits, the discounts they are attracted to, etc. Create marketing campaigns that’ll appeal to buyer personas from each hyperlocalized region.

In the long term, this strategy builds a loyalty relationship between you and customers. They feel like you know them, their interests, what’ll entice them to buy. In other words, your customer retention rate improves drastically.

Compete on popular products

Don’t apply store-wide discounts. Carefully pick the most popular products in your assortment. It’s a tactic used by Amazon, where the retailer lures customers into the website by offering competitive prices for the most popular products. Boosting conversions is a short term gain, but this strategy is advantageous in the long term too.

According to a former Amazon Business Leader, the giant converts many customers with this strategy, but its primary profits are not through these sales.

Once these customers get through the door, they subconsciously assume that Amazon is the cheapest destination for shopping. They continue shopping from the retailer, which offers a seamless shopping experience and excellent customer service, and eventually become loyal customers.

When selling internationally, how do you decide which products are in high demand across countries? There are several tactics you can pursue:

  • Check out the best-sellers on popular websites
    Best-seller lists on Amazon, AliExpress, Zalando, or other high-traffic local websites give you a clue of what’s popular in a country.
  • Check out Google Trends
    If you have a product in mind, you can observe the changes in its popularity over time and across regions with a Google Trends search.
  • Do keyword research
    There are numerous free keyword research tools you can use to capture trends in foreign markets. Search metrics yield popular products as well as the number of players competing on those products.

How can you offer competitive prices?

As a first step, identify your competitors. Look for other players that sell your products, or substitutes. Track their prices and make sure your prices are cheaper. Online prices change faster than you could track manually, so either build an internal price tracking engine or benefit from price tracking software.

Make use of product bundling

Bundling is another tactic that influences shopping behavior. You can implement it to unsexy products, accessory products, or slow-moving stock in general.

To create killer bundles, you need to analyze historical purchase data to find out what type of bundles would attract your customers. In case you’re wondering, bundled products don’t have to be related at all. The purpose is to gather together two or more products that hit a certain audience.

For example, McDonald’s Happy Meal contains food and a toy, two goods that have fundamentally different functions. But they hit the same target audience: children. Not to mention, this might be the best bundle idea in history.

Of course, the logic of bundling requires you to offer two or more products at a discounted price. So make sure that your bundle is competitively priced


E-commerce is a fast-paced and fiercely competitive market that compels its players to come up with smart competitive tactics to survive. We’ve talked about four global pricing strategies that’ll influence consumer behavior. Integrate them into your own international pricing strategy and you’ll see the outcome soon. 

To briefly summarize:

  • Personalize your offer by creating discounts for individual shoppers through checkout offers or via email 
  • Basket-based discounts based on shoppers’ purchase history and their real-time data on a website
  • Create competitive pricing on your most popular items to lure shoppers to your website and make them loyal customers 
  • Product bundling on slow moving stock 
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