Incremental pricing revenue in ecommerce and retail

Incremental pricing revenue is a pricing strategy used by retailers and ecommerce businesses to increase revenue by offering customers additional products or services at an additional cost. This strategy is often used in the form of upselling or cross-selling, where a customer is offered an upgrade or add-on to their original purchase.

For example, a customer purchasing a basic t-shirt may be offered the option to upgrade to a premium t-shirt for an additional cost, or they may be offered the option to add a matching pair of pants to their purchase. By offering these additional products or services, businesses can increase their revenue without increasing their prices across the board.

Incremental pricing revenue can also be used in the form of bundled pricing, where a customer is offered a package deal that includes multiple products or services for a discounted price. This can be an effective way to increase revenue by encouraging customers to purchase multiple items at once.

This strategy can also be used in the form of dynamic pricing, where prices are adjusted in real-time based on supply and demand. For example, during peak hours of a service, the price may be higher, and during off-peak hours the price may be lower.