(Source: https://pltfrm.com.cn)
Introduction
In China’s fast-moving e-commerce environment, pricing one SKU correctly is a challenge—pricing a catalog of 50 to 100 SKUs across regions, channels, and campaigns requires methodical planning. For overseas brands aiming to stay competitive while remaining cost-efficient, a structured price matrix is a powerful tool. In this article, we reveal how to develop an affordable SKU pricing grid that works across omnichannel strategies in China.
1. Omnichannel Compatibility in Pricing Strategy
1.1 Pricing Integrity Across Platforms
A well-designed matrix helps ensure pricing remains consistent across Tmall, JD, WeChat Stores, and Douyin. Inconsistent pricing leads to consumer distrust and platform penalties.
1.2 Channel-Specific Flexibility
While maintaining overall coherence, allow room for channel-specific campaigns (e.g., flash sales on Douyin, vouchers on Tmall). The matrix should include defined rules for when and how SKUs can vary in price per channel.
2. Layering Price Logic by Category and Function
2.1 Functional Tiering
Group SKUs by function—such as core products, limited editions, or service add-ons. Each group requires tailored pricing logic based on customer expectations and lifecycle dynamics.
2.2 Category-Based Margins
Apply different pricing strategies based on product category. For example, consumables may benefit from bundling, while tech SKUs might need launch pricing to gain traction.
3. Integrating Stock and Sales Signals into the Matrix
3.1 Inventory-Aware Adjustments
Sync the pricing matrix with inventory systems to enable real-time price updates based on overstock or fast-selling indicators. This avoids both price rigidity and revenue leakage.
3.2 Sales Signal Triggers
Define triggers for discounting based on real-time sales data. For example, if an SKU fails to meet conversion targets in 7 days post-launch, a pre-approved discount kicks in.
4. Cost-Effective Tools for SKU Price Management
4.1 Spreadsheets + Rule Templates
Use structured Excel templates that define pricing rules by product type, channel, and time period. This remains cost-effective for brands not yet ready to adopt paid SaaS systems.
4.2 Automation-Friendly Setup
For brands scaling up, migrate the matrix logic into systems like Shopify Plus (with plugins) or ERP platforms that support automated pricing workflows across China-facing stores.
Case Study: US Home Goods Brand Streamlines 100+ SKUs for China Launch
A US-based home goods brand launched 120 SKUs in China through multiple platforms including Tmall and JD. Their initial pricing approach was manual, leading to duplication errors and pricing mismatches. After implementing a centralized SKU pricing matrix—covering lifecycle stages, regional targets, and platform-specific rules—they achieved full channel alignment. Their Tmall refund rate dropped by 18% due to improved price clarity, while conversion on high-margin bundles increased by 24%.
PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries’ exports in China account for 97% of the total exports in Asia. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!
