On marketplaces like Takealot, price is one of the first things shoppers compare. In fact, research shows that 71% of online buyers prioritize price over brand. But here’s the catch: trying to be the cheapest often triggers price wars, shrinks your margins, and eventually puts you out of business.

Instead, smart Takealot sellers use strategic pricing to stay competitive and profitable. In this post, we’ll cover pricing strategies inspired by global ecommerce best practices (like Amazon) that you can apply directly to your Takealot store.

Why Pricing Strategy Matters

Your pricing sends signals:

• Too high, and customers scroll past.

• Too low, and buyers assume poor quality (plus you lose money).

• Just right, and you convert browsers into buyers and protect your profit.

Getting this balance right is one of the most powerful levers in your business.

Strategy 1: Know Your True Costs

Before setting any price, calculate your exact costs:

• Takealot fees: Commission + VAT.

• Product cost: Unit price from supplier.

• Shipping & customs: Include courier, import duties, and packaging.

• Fulfillment costs: Storage, returns, or Takealot Fulfilment (if you use it).

Only once you know your costs can you set a profitable minimum price. Aim for 30–40% margins to leave room for discounts and promotions.

Strategy 2: Competitor Benchmarking

Research your category and see what others are charging. Ask:

• Are there sellers dominating the Buybox?

• Are prices clustered tightly or spread out?

• Do premium versions exist (higher priced, better quality)?

You don’t always need to undercut. Sometimes sitting slightly above competitors, while offering better branding, images, or bundles, can win you more sales.

Strategy 3: Psychological Pricing

Humans don’t think logically about numbers. We’re influenced by perception. Use proven psychological tactics:

• Charm pricing: R299.99 feels cheaper than R300.

• Tiered options: Offer a basic, mid-range, and premium version. Most buyers choose the middle.

• Anchoring: Show your price next to a higher-priced alternative to make it feel like a deal.

Strategy 4: Introductory Pricing for New Products

When launching a new listing, start slightly lower than the competition. This helps you:

• Win early conversions.

• Collect reviews faster.

• Improve Takealot search ranking.

Once you gain traction, gradually increase the price to protect your margins.

Strategy 5: Add Value, Don’t Slash Prices

The best way to avoid price wars is to differentiate. For example:

• Bundle accessories (e.g., phone case + screen protector).

• Offer superior packaging or warranties.

• Position your brand as eco-friendly or premium.

When shoppers see value, they’ll pay more.

Pro Tip: Test and Adjust

Pricing isn’t set in stone. Run A/B tests: raise your price by 5–10% for a week and monitor sales. If conversion rates hold steady, you’ve just improved your profit margin without losing volume.

Price is a powerful tool, but it’s not about being the cheapest. Successful Takealot sellers use a mix of psychology, competitor research, and value creation to win sales without destroying margins. Remember: the goal is profitable sales, not just more sales.