[E-Store Co., Ltd.] 80% responded that they had increased product prices after 2023
*E-store Co., Ltd.*
Press release: August 27, 2024
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80% said they will increase product prices after 2023
*Survey on price increases of products by e-commerce businesses* E-store Co., Ltd. provides comprehensive support from e-commerce site construction and opening to success (Tokyo, CEO and COO)
From August 5th to 16th, 2024, Yoichi Yanagida conducted a survey of e-commerce businesses using E-store Shopserve about “product price increases.” We received 646 responses.
The results of the survey revealed that 80% of businesses will increase product prices from 2023 onwards. The reasons cited were “increase in purchase prices and raw material costs (98%)” and “increase in costs related to business operations such as personnel costs (35%)”, and in order to respond to changes in the business environment, price pass-through is increasing. You can see that it is spreading.
Other reasons for the price increase include “impact of weaker yen,” “revision of manufacturer’s suggested retail price,” “request for price revision from manufacturer,” “increase in shipping fees,” “soaring utility costs,” and “increase in minimum wage.” It has risen.
*The price increase range is 20% or less, 90% from the original price* Of the businesses that raised prices, 90% increased prices by 20% or less from the original price. Of these, more than half were price increases of 10% or less. Less than 10% of businesses raised prices by 21% or more, indicating that the increases were concentrated within a certain range.
*No impact on sales volume of products with increased prices, 56%* 56% of businesses that raised prices responded that there was no impact on the number of products sold (same as before the price increase). On the other hand, although 42% of businesses said that the number of products sold for which the price had been increased has decreased compared to before the price increase, 46% of businesses said that they would “try to improve the unit price per person by recommending other products” to account for the decrease. We are implementing some initiatives to compensate for this. The responses received under “Other” revealed that they are taking various measures to compensate for the decline in sales, such as “changing point settings” and “issuing coupons.”
*Reason for not raising prices: 28% think they will not sell if they raise prices*
Businesses that have not raised prices since 2023 said they will not raise prices because they think they will lose sales if they raise prices (28%) or because they think there will be a backlash from customers if they raise prices (12%). It seems that they are unable to raise prices because they are imagining how consumers will react after the price increase.
*9% of businesses that have not raised prices after 2023 had already raised prices before 2022.
* Regarding future price increases *
We asked both businesses that have raised product prices after 2023 and businesses that have not raised prices about future price increases.
* -Businesses that have increased product prices-*
85% of respondents said they would continue to raise prices as necessary. * -Businesses that did not raise product prices-*
38% of respondents answered, “There is a strong possibility that product prices will be increased in the future.”
Businesses that have already raised prices are proactive about raising prices as necessary, but businesses that have not raised prices appear to be cautious about raising prices in the future.
Among businesses that did not raise prices, 67% answered that they would need to raise prices in the future because of the impact of “increases in purchasing prices and raw material costs,” and what would be the trigger for raising prices? , the results were similar to those of businesses that have already implemented price increases.
*To promote appropriate price pass-through*
In this survey, we did not find any extreme bias in responses based on the combined monthly sales of e-commerce and stores or the genre of products handled.
There has been a long period of deflation, and the business
environment seems to be becoming tougher due to rising purchasing prices and operating costs, but considering consumer backlash and the impact on sales volume, businesses are unable to raise prices. It turns out that there are quite a few people. In fact, although some respondents said that the number of products sold for which they had raised prices had decreased, more than half of the businesses were able to maintain the same number of sales as before the price increase.
Currently, costs are increasing in various areas, and there may be more opportunities to consider reviewing product prices. In order to smoothly implement the necessary price increases when necessary, I think it would be effective to anticipate in advance the possibility of a decrease in the number of products sold and the reactions of existing customers, and to consider countermeasures.
* [Summary of survey regarding price increases of products by e-commerce businesses] *
Survey implementation period: August 5th to 16th, 2024
Survey method: Internet (response to survey form)
Target: EC businesses using E-store Shopserve
Number of valid answers: 646
*When using the contents of this survey, please indicate “E-store Shopserve – Survey on price increases of e-commerce businesses’ products” as the source.
* About Estore Shopserve * * https://shopserve.Estore.jp/*
E-store shop serve since 1999
, an EC system that specializes in D2C, has a GMV of 1.5 trillion yen, and is the condensation of the know-how of a total of 110,000 companies. Uses a line that is comparable to a dedicated construction. By using premium-class internet connections, which can be said to be on a different level for shared servers called SaaS, we have maintained the industry’s most stable operation (no downtime) for seven consecutive years. In addition, by introducing TLS Send Grid Mail as early as possible, we can achieve a high delivery rate for sent emails, and with the industry’s largest number of APIs, we can communicate directly with various well-known tools and services, and there is no need for customization development, allowing instant real-time connection with your system. It is a flexible system that can be connected. In addition, with dedicated staff and CRM functions, we can strengthen repeat business, solve population decline, and solve labor shortages.
https://Estore.jp/
Since 1999, we have been developing our business centered on specialty store style (D2C) EC business. We not only provide high-performance and safe e-commerce systems to a wide range of e-commerce businesses, from small to large scale, but we also provide 24-hour, 365-day monitoring and support systems, a dedicated consulting team, marketing support, and more. We provide services in all related areas. In addition, as a HOI (hands-on incubation) business, we aim to commit to the business and grow together with companies that have unique and valuable products by providing our know-how and financial support in the e-commerce business field. We are actively developing this.