Quick Overview: What is Price Elasticity of Demand in E-Commerce?
Posted: Sun Jan 19, 2025 9:52 am
Price elasticity of demand is not a pricing strategy, it is an attribute that all product prices embody – only the level of elasticity (or inelasticity) changes. Understanding the price elasticity of demand for your products will help you make better e-commerce pricing decisions.
Let's start with a quick rundown of the basics. In latvia telegram number database short, price elasticity of demand measures how much an increase or decrease in price will affect the demand for a good.
Most goods traded in the world are elastic – some are more elastic than others, meaning that demand for them will increase when prices fall, or vice versa. On the other hand, some goods are relatively inelastic – meaning that changes in price will not affect demand for them much (but this is not very common in e-commerce).
Let's start with a quick rundown of the basics. In latvia telegram number database short, price elasticity of demand measures how much an increase or decrease in price will affect the demand for a good.
Most goods traded in the world are elastic – some are more elastic than others, meaning that demand for them will increase when prices fall, or vice versa. On the other hand, some goods are relatively inelastic – meaning that changes in price will not affect demand for them much (but this is not very common in e-commerce).