Regional Pricing Best Practices

Introduction: Why Regional Pricing Matters

Customers around the world have very different levels of disposable income. A price that feels normal in the US or Western Europe may be unaffordable in South America, Asia, or Eastern Europe.

Regional pricing adjusts product prices to match local purchasing power. This makes products more accessible, improves conversion rates, and expands revenue potential in price-sensitive regions. It also strengthens customer loyalty by ensuring fair and inclusive pricing worldwide.

1. Identify High-Impact Regions

Start by analysing completed payments by country:

  • Total revenue (overall importance)

  • Order count (demand)

  • Average order value (AOV) (affordability)

High-impact regions are those with strong order volume but significantly lower AOV than benchmark markets (e.g., US, Western Europe).

👉 For example: India, Brazil, Japan, or Eastern European countries often show good demand but lower spending power.

2. Set Regional Pricing Tiers

Use your top markets (Where most of your Revenue comes from) as your benchmark AOV Identify where countries sit below this and apply pricing reductions proportionate to the gap:

  • 10–15% cut → for mid-tier regions (e.g., UK, Japan).

  • 15–25% cut → for price-sensitive regions (e.g., India, Brazil).

  • 20–30% cut → for lower-income regions (e.g., Serbia, Pakistan).

3. Roll Out in Phases

Instead of changing your entire store at once:

  • Test regional pricing on high-performing packages first.

  • Select your top 2–3 bestsellers.

  • Apply regional adjustments for select countries.

  • Measure conversion uplift, AOV, and revenue impact after 2–4 weeks.

4. Measure Success

Track whether:

  • Order volume increases in discounted regions.

  • Cart abandonment decreases.

  • Overall revenue per region grows despite lower per-order pricing.

If positive, expand to more packages or roll out store-wide.

5. Iterate & Optimise

  • Adjust percentages based on performance.

  • Pair regional pricing with:

  • Localised promotions (holiday sales, regional events).

✅ Summary: Regional pricing works best when data-driven. By identifying where customers want to buy but face affordability gaps, and rolling out tiered discounts gradually on high-performing packages, stores can unlock new revenue growth without reducing revenue in established markets.

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