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  • Top 10 SSL Certificate Providers of 2023 to Secure Your Site

    In ancient times, government authorities transferred classified information through secure pathways to ensure confidentiality and prevent unauthorized access. Today, in the digital age, data privacy, and security are more crucial than ever as sensitive information, when leaked, can have severe consequences.

    To address this concern, SSL (Secure Socket Layer) certificates were introduced. These certificates create an encrypted link between a web server and a client, ensuring that all data transmitted remains private and secure. SSL certificates provide peace of mind for individuals and organizations who need to transmit sensitive information over the internet. Thus, when you enter your details such as name, debit card number, password, etc., it gets encrypted and inaccessible to hackers.

    An SSL certificate looks like a lock icon toward the URL’s immediate left. Here are a few reasons why SSL certificates are vital for a business:

    • Higher CRR – SSL is the very first sign of trust that a website visitor sees and is core to the business-customer relationship. A website without an SSL warns the visitors before entering the site. This negative sign repels the visitors and defiles the brand image.
    • Secures Data – Data is the currency of the modern world. If it is secure, you, your company, and your customers are secure. SSL provides an encryption layer and prevents data breaches. This, in turn, can put your company under legal lassos.
    • Financial Compliances – It also aligns your website with the PCI/DSS requirements.
    • Better Search Ranking– Security is now a direct search ranking factor. In the year 2021, Google announced its Core Web Vitals that would impact search rankings. Security was a part of these Web Vitals.

    Because SSL is a technical field, you might find a hard time sailing through it. How many types are there? How to choose one? We’ll guide you through all the technical troubles and help you dock your boat to the SSL service provider that is best for you.

    Why SSL Certificates?

    Factors To Consider While Choosing SSL Certificates

    Choosing an SSL certificate is not as easy as buying a packet of crisps. Buying the wrong SSL certificate can ruin the image of your company. But how to buy an SSL certificate? Well, certain factors must be ticked when choosing an SSL certificate for your website.

    1.  Validation Level: The validation level ensures the type of security provided by the CA (Certificate Authority). At present, three types of domain validation levels are there:

    • Domain Validation: This is the simplest SSL that can provide your website with a padlock symbol and basic encryption. It is usually provided within minutes.
    •  Organization Validation: OV is a step above and requires the organization to prove domain ownership. It also validates the physical and legal existence of the organization. You might need to submit the basic papers and wait a few days.
    • Extended Validation: This provides the highest level of trust and is best for websites that face a large number of people. For example, an e-commerce website must have this validation. EV provides a padlock symbol and a green HTTPS bar.

    2.   Number of Domains Covered: Depending upon the number of domains and subdomains, you may choose an SSL certificate. Here are the possible actions:

    • Single Domain
    • Wildcard
    • Multiple Domain

    3.      Warranty Provided: Authorized CAs also provide a certain amount of warranty to cover any mishap. The higher the warranty, the higher the price of SSL certificates.

    4.      Experience and Reputation of the CA: Not all the certificate providers out there are legit. To ensure the image of your company, you must also consider the experience and image of the SSL certificate providers. The best CAs use the latest security technology.

    5.      Customer Support: Consider this in case any mishap occurs with the certificate.

    Once you’ve considered all the factors before choosing the type of SSL, it is time to choose the best SSL provider.

    How Does SSL Certificate Work?

    The Top 10 SSL Certificate Providers

    SSL certificates have been around almost since the boom of the internet. As soon as there was a flow of data through the wires, there was a need to secure the passage through which data flows. The history of SSLs has been thought to reach as back as 1995. Now, a mere glimpse can reveal thousands of SSL certificate providers to you. In such a case, it becomes important to choose the SSL-providing company wisely; it is a matter of security and you cannot compromise over it. Here is a list of 10 reliable SSL certificate-providing companies that you can choose from:

    Comodo
    DigiCert
    GoDaddy
    SSL.com
    GeoTrust
    GlobalSign
    Sectigo
    Entrust
    AlphaSSL
    Thawte

    Comodo

    Website Comodosslstore.com
    Rating –
    Best For All businesses
    Used By Air Canada, Mn.gov, Alberta, etc.

    Comodo - Top SSL Certificate Providers of 2023
    Comodo – Top SSL Certificate Providers of 2023

    Comodo has been named the largest certificate authority globally. It has achieved the herculean number of 100 million certificates worldwide. It also has a good support staff that is highly trained in the technicalities. Comodo provides a wide array of certificates based on security and warranty.

    Here are some factors to consider before choosing Comodo:

    Pros:

    • Aggressive pricing in the DV SSL field
    • 24/7 customer support
    • 30-day money-back guarantee
    • Varieties of products
    • Covers all three validation levels: DV, OV, and EV
    • Huge warranties up to $2 million for EV in Enterprise SSL and Optimum SSL for multi-domain

    Cons:

    • You might need to buy for longer periods to get an affordable price
    • The validation time might take up to 5 days

    Pricing:

    Comodo has an aggressive pricing approach that helps buyers afford the price without compromising on security. It offers various pricing plans. Have a look at the pricing details of some packages.

    Plan Pricing
    DV SSL $66/yr
    OV SSL $165/yr
    EV SSL $174/yr
    Wildcard SSL $312/yr

    DigiCert

    Website Digicert.com
    Rating 4.4 out of 5
    Best For Big enterprises looking for up-to-date security and priority support
    Used By Behance, CCTV.com, bit.ly, etc.

    DigiCert- Top SSL Certificate Providers of 2023
    DigiCert- Top SSL Certificate Providers of 2023

    DigiCert is the same company that acquired Norton Security back in 2017. It is a reputed company that offers various types of security certificates with easy validation and installation. Price-wise, DigiCert might come roaring at your pockets.

    If price is not your concern, here are the reasons that you should go for DigiCert

    Pros:

    • Numerous SSL options like Wildcard, Multi-domain, etc.
    • Contains Norton Security at its core
    • Easy to validate and install
    • Offers all three validation levels
    • Money-back guarantee
    • Huge warranties ranging from $1.25 million to $2 million
    • 24×7 live support that eases up the after-purchase worries

    Cons:

    • Pricing at the higher end
    • Technical language used on the website
    • No price provided for DV SSL

    Pricing:

    DigiCert offers various pricing plans. Have a look at the pricing details of some packages.

    Plan Pricing
    Basic OV SSL $268/yr
    Basic EV SSL $398/yr
    Pro EV SSL $1728/yr

    DigiCert has been in the security industry for over 20 years. This deep-rootedness ensures trust and security without any compromise. If you love the blend of security, trust, and support, go for DigiCert.

    GoDaddy

    Website Godaddy.com
    Rating 3.9 out of 5
    Best For Businesses looking for multi-domain EV SSL at a reasonable price
    Used By Mediamatters, ADN, AZquotes, etc.

    GoDaddy - Top SSL Certificate Providers of 2023
    GoDaddy – Top SSL Certificate Providers of 2023

    With over 26 years of experience, GoDaddy is usually hailed as a domain and web hosting providing company. But the company is much more than this. In the field of SSL, GoDaddy has achieved immense public trust.

    Here are the reasons you should choose GoDaddy for SSL,

    Pros:

    • Flexible pricing
    • Excellent security
    • 30-day money-back guarantee

    Cons:

    • The thing that you should take care of is the renewal cost. The renewal charges could be comparatively higher whereas the first payment might be cheaper.

    Pricing:

    GoDaddy offers various pricing plans. Have a look at the pricing details of some packages.

    Plan Pricing
    DV SSL $100/yr
    OV SSL $169/yr
    EV SSL $249/yr
    Wildcard SSL $429.99/yr

    Godaddy is a reliable source for security certificates. Its easy-to-install-and-validate certificate will provide you quickly with an EV till you are finished sipping your coffee.

    SSL.com

    Website Ssl.com
    Rating 4 out of 5
    Best For Websites looking for quick EV and OV issuance and strong technical support
    Used By LAPL, HSLDA, etc.

    SSL.com - Top SSL Certificate Providers of 2023
    SSL.com – Top SSL Certificate Providers of 2023

    Founded in the year 2002, the company has over 20 years of expertise in the field of SSL and TLS. Other than this, here are a few factors to consider before choosing SSL.com:

    Pros:

    • Affordable prices that are good for small to medium businesses
    • A promising 30-day money-back guarantee
    • Excellent support team with 24×7 availability
    • Huge warranties ranging from $10K to $2 million

    Cons:

    • SSL.com is not so beginner friendly; they have lots of technical and confusing language on their website
    • Might need plans for over 1 year to get some discount

    Pricing:

    SSl.com offers various pricing plans. Have a look at the pricing details of some packages.

    Plan Pricing
    Basic Single Domain Plan Starting from $49/yr
    Premium SSL $74.25 to $99/yr
    Enterprise EV SSL $239.50 to $299/yr
    Enterprise EV UCC/SAN SSL $319,20 to $399/yr

    If support, price, and quick certificate issuance are your concerns, go for SSL.com. It claims to provide DV and OV certificates within 5 minutes.

    GeoTrust

    Website Geotrust.com
    Rating 4.8 out of 5
    Best For Websites looking for multi-domain EV and OV for a longer period
    Used By Sky.com, Visa.com, Sony, etc.

    GeoTrust - Top SSL Certificate Providers of 2023
    GeoTrust – Top SSL Certificate Providers of 2023

    It was the first company that issued DV SSL certificates. Founded in the year 2001, GeoTrust has gained a sea-deep experience in the field of cyber security. As it was once acquired by Norton, it is a part of the DigiCert group now because of Norton’s acquisition by them. GeoTrust also provides OV and EV with GeoTrust True Business ID.

    Here are the factors you should consider before choosing GeoTrust for SSL:

    Pros:

    • Huge warranties ranging from $500K for DV, $1.25 million for OV, and $1.5 million for EV
    • Supports 99% of browsers
    • Quick validation time ranging from a few minutes for DV, 1 day for OV, and 1-3 days for EV
    • Competitive price for high-end products
    • 24×7 live chat and call support

    Cons:

    • Their pricing for lower-end products like Basic DV SSL is a bit high
    • The warranty amount is not high

    Pricing:

    GeoTrust offers various pricing plans. Have a look at the pricing details of some packages.

    Plan Pricing
    DV 1-year plan $149/yr
    GeoTrust True Business ID OV $268/yr
    GeoTrust TrueBusiness ID EV $398/yr

    Go for GeoTrust if you have a larger business to be secured.

    GlobalSign

    Website Globalsign.com
    Rating 4.2 out of 5
    Best For Big enterprises having numerous subdomains can consider a Wildcard SSL costing $949 for unlimited subdomains
    Used By Vimeo, Vmware, Spacex, etc.

    GlobalSign - Top SSL Certificate Providers of 2023
    GlobalSign – Top SSL Certificate Providers of 2023

    It is a company that focuses on enterprise-level businesses. Founded in the year 2003, this Belgian company is as good as Belgian chocolates. GlobalSign might not be a good choice for you if you are a smaller business just starting to row. Also, it offers security for 3 SANs for free – Outlook, Mail, and auto-discover.

    Here are the factors you should consider before choosing GlobalSign for SSL:

    Pros:

    • Certificate issuance in a flash
    • Huge warranties ranging from $10K to $1.5 million
    • Multi-language chat, email, and call support
    • Provides all three validation levels: DV, OV, and EV
    • Easy and quick installation and validation

    Cons:

    • Its limited support timings
    • The price is at the higher end

    Pricing:

    GlobalSign offers various pricing plans. Have a look at the pricing details of some packages.

    Plan Pricing
    Basic DV SSL $249/yr
    Baasic OV SSL $349/yr
    Basic EV SSL $599/yr

    If you are a large-scale company, GlobalSign will ensure that your data remains secure. Also, if you have multiple domains to cover and expect future growth, go for it.

    Sectigo

    Website Sectigo.com
    Rating 4.5 out of 5
    Best For Websites looking for multi-domain EV SSL at an affordable price – $599 for 1 year
    Used By Samsung, Gravatar, WP, etc.

    Sectigo- Top SSL Certificate Providers of 2023
    Sectigo- Top SSL Certificate Providers of 2023

    Founded in the year 1998, Sectigo holds an immense experience in the cyber-security field. It has SSL certificates that suit all business requirements irrespective of size.

    Here are other factors to look for before choosing Sectigo:

    Pros:

    • Offers DV, OV, and EV
    • Reasonable prices for all the different types of certificates
    • Money-back guarantee
    • Huge warranties ranging from $500K for DV and $1.75 million for EV
    • 24×7 live support through chat and ticket
    • Easy and quick installation and validation

    Cons:

    • The warranty for OV SSL is a bit low at $1 million

    Pricing:

    Sectigo offers various pricing plans. Have a look at the pricing details of some packages.

    Plan Pricing
    DV SSL $78/yr
    OV SSL $179/yr
    EV SSL $249/yr

    Price-wise Sectigo is very affordable for all the different types of products, especially when it comes to its multi-domain EV SSL.

    Entrust

    Website Entrust.com
    Rating 4.5 out of 5
    Best For Companies running multiple websites
    Used By FCC.gov, Dell, Nokia, etc.

    Entrust- Top SSL Certificate Providers of 2023
    Entrust- Top SSL Certificate Providers of 2023

    In terms of experience, Entrust holds the scepter with nearly 30 years of footmarks in the cyber security field. Founded in the year 1994, this company offers SSL in OV and EV only.  

    Here are factors that you should consider before choosing Entrust for SSL:

    Pros:

    • Money-back guarantee
    • Excellent support through phone, chat, and email (not on Saturdays and Sundays)
    • Easy to install, validate, and manage

    Cons:

    • Low warranty amount of $500K warranty on all SSLs
    • Limited support – 5 days a week
    • Entrust does not provide DV SSL

    Pricing:

    Entrust offers various pricing plans. Have a look at the pricing details of some packages.

    Plan Pricing
    Standard OV $219/yr
    Wildcard OV $799/yr
    Multi-Domain EV SSL $429/yr

    AlphaSSL

    Website Alphassl.com
    Rating –
    Best For Single websites looking for basic and affordable SSL
    Used By Ecrater, AAP, Electricbike, etc.

    AlphaSSL- Top SSL Certificate Providers of 2023

    AlphaSSL is powered by GlobalSign, which is another SSL-providing giant. If you have a single website that you are looking to secure at an affordable price, AlphaSSL is there for you. However, when it comes to multi-domain SSL certificates, AlphaSSL disappoints.
    Here are the factors you should consider before choosing AlphaSSL:

    Pros:

    • Affordable prices start at just $49 per year
    • Simple buying and installing process
    • Warranties on all SSLs (the amount has not been made open by the company)

    Cons:

    • Only DV SSL is issued
    • No discounts on buying SSL for longer terms
    • Limited chat support
    • It does not offer multi-domain SSL

    Pricing:

    AlphaSSL offers two pricing plans. Have a look at the pricing details of these packages.

    Plan Pricing
    Alpha SSL $49/yr
    Wildcard SSL $149/yr

    AlphaSSL, being a good company for single websites, might also disappoint you in terms of validation levels, discounts, and customer support. If you have multiple domains or OV and EV, you need to look for other providers like Sectigo, GlobalSign, Comodo, etc.

    Thawte

    Website Thawte.com
    Rating 3.5 out of 5
    Best For Websites looking for a trustable SSL source for OV and EV SSLs
    Used By Vince, Peba, Instamed, etc.

    Thawte- Top SSL Certificate Providers of 2023
    Thawte- Top SSL Certificate Providers of 2023

    Being one of the oldest companies providing SSL certificates, Thawte is one reliable source you can consider for SSL certificates. Founded in the year 1995, it holds an experience of over 28 years in the field of SSL and cyber security. The company claims to have issued over 945,000 SSL certificates in over 240 countries. It also offers a multi-year plan for 1-6 years. In all its plans, you can add up to 24 SANs.
    Here are the factors you should consider before choosing Thawte:

    Pros:

    • Free reissues – in case you upgrade your server
    • 99% browser compatibility rate
    • 30-day money-back guarantee
    • Good technical support through chat, mail, or phone calls
    • Good tool management

    Cons:

    • Considering the price, the warranty amount might disappoint. Warranty ranging from $500K to $1.5 million.

    Pricing:

    Plan Pricing
    Basic SSL $149/yr
    SSL Web Server $268/yr
    SSL Web Server with EV $398/yr

    Thawte is a security giant that has been in the industry for a long time. If you have a large-scale business, you can consider it for its affordable prices, strong security, and technical support.

    Conclusion

    Buying an SSL certificate is trickier, especially when you know nothing about the technical aspects. If you have a simple website that needs some basic security, you may go for Comodo; it offers basic DV SSL for as low as $5.99 per year. It is an excellent choice that also offers a best-in-the-class warranty that goes up to $2 million. If you have a big business that needs excellent enterprise-level security and support, GlobalSign could be your answer. It is all about knowing your requirements and finding the best fit for you.

    Apart from paid SSL certificates, many hosting providers also provide free SSL certificates. These free certificates are good for basic blogging websites. If you have a dedicated business, paid SSL with OV and EV is the best option for you. For a business, SSL creates trust, builds reliability, increases conversion rate, reduces the threat of data breach, and enhances the overall brand image.  

    FAQs

    What is SSL?

    SSL is a standard security technology for establishing an encrypted link between a server and a client.

    What are the three types of certificates?

    • Extended Validation (EV)
    • Organization Validation (OV)
    • Domain Validation (DV)

    Which is the cheapest SSL certificate?

    If you have a simple website that needs basic security then Comodo is the cheapest SSL Certificate you will find.

    How long are the SSL certificates valid?

    It depends on which SSL certificate you are choosing. As per the Certificate Authority / Browser (CA/B) Forum, an EV, OV and DV certificates of GeoTrust, Thawte, Symantec, SSL.com & Comodo are issued a maximum of 2 years.

    Are there any free SSL certificate providers?

    Yes, there are a few free SSL certificate providers which are good for basic blogging websites.

  • Setting Your Product Price: 7 Useful Tips to Keep In Mind

    Price is what a customer pays in terms of money to acquire a product or avail a service. As an entrepreneur setting your product price can be a real task.

    Several factors are involved in deciding the price of a product. This is because Product pricing plays a very significant role in determining the position your product will acquire in the market.

    This becomes more significant in today’s scenario when the market is full of competitors. As a Start-up, the price of your product is capable of making or breaking the market for you. It is an essential element of financial modelling.

    High Price vs. Low Price

    You would have noticed that most products that are considered branded and thus, of great quality, are sold at quite higher prices. However, in contrast to other similar products available in the market are sold at lower prices.

    This scenario reflects the common belief system that states “when you pay for bananas, you buy monkeys”. Therefore, in an attempt to get the supreme quality products, they are willing to pay higher prices. However, this is not always true.

    Sometimes keeping the cost way too high can make your customers lose interest. This can be especially true in terms of startups where you still have to establish your product in the market by winning the trust of your customers.

    At this point, you might consider keeping the prices as low as possible for your customers, so at least they may give it a try once. Howbeit, if the price is too low even if it attracts a lot of customers it can have a negative impact on your profit margin.

    Sometimes, it is also seen that such tactics were used by the companies to create initial awareness about their product but as soon as the prices were hiked, the sales declined.

    Confused? Then how do you decide the price for your product?

    For any product to start and maintain a consistent market setting the right price is very important. It is capable of making or breaking the market for you.

    So, here we are with the 7 most useful tips that you must keep in mind while setting the price for your product.

    Keep reading…

    1. Include All the Variable Costs
    2. Indirect Fixed Costs and Break-Even Point
    3. Determine Your Profit
    4. Value-Based Pricing
    5. Scan Your Competitors
    6. Study the Market
    7. Update the Product Prices

    1. Include All the Variable Costs

    Variable costs include the actual expenses incurred right from the start of product manufacturing till the time it reaches a customer. It includes the cost of raw material, manufacturing cost, packaging & shipping charges, etc.

    The first cost considered is the cost of goods sold. This includes the cost of raw material and manufacturing per unit of product.

    After this, the time and labour costs, incurred in the production of a particular product, are counted. You can decide the cost of time on an hourly basis. This means you first decide the hourly income you expect from your business and then divide it by the number of products that can be manufactured in this duration.

    Finally, you add other variable expenses such as packaging & shipping cost, promotional material cost, and affiliate commissions. The sum total of all these variable costs is known as the total per-product cost.

    2. Indirect Fixed Costs and Break-Even Point

    Two other major factors that must not skip while deciding the price of your product are the indirect fixed costs and breakeven point.

    Indirect fixed costs include salaries of office staff, rent of office space, marketing and advertisement, depreciation cost, insurance, and other professional fees, etc.

    Basically, these are the expenses that you are bound to pay irrespective of your sales or production. Therefore, it is crucial that this cost is covered under the price of your product. However, how to break these costs in terms of the per-unit price of your product can be difficult. Understanding the breakeven point will help you in this regard.

    It refers to the level of production at which the total revenue becomes equal to the total expenses. The formula used to calculate the breakeven point is mentioned below:

    Break–Even point (Units)= Fixed Costs ÷ (Revenue per Unit – Variable Cost per Unit)

    By calculating the breakeven point you will be able to determine the number of units of the product that you will have to sell to equalize the variable and fixed costs. This, in turn, will help you to make an informed decision while setting your price.

    3. Determine Your Profit

    The next step is to determine the extent of profit you wish to make. The profit margin should be enough to save you from regular market fluctuation.

    Profit margin is usually expressed as a percentage and is an indicator of the money you make out of your sales.

    You have to consider both fixed and variable costs while deciding your profit margin. Thorough market research will also give you an idea to set an acceptable price.

    The basic formula used for calculating the profit margin is given below:

    Gross Profit Margin = Gross Profit / Revenue x 100

    4. Value-Based Pricing

    The aim of any business is to earn a decent profit. This is known as cost-plus pricing. However, as a long-term goal for your company, you will also have to identify what your customer is ready to pay.

    This can be determined by how valuable your product is for your customers. The high-quality and other superior features associated with it as well as the capacity of customers to identify and appreciate those features is what makes your price look reasonable.

    You can also conduct small online or offline surveys to understand the psychology of your customers.

    “Pricing is all about customer value. Price is what you pay. Value is what you get.”- Warren Buffet

    5. Spy on Your Competitors

    It is always a good idea to keep an eye on your competitors. In terms of setting the price, it will help you understand the strategies they are using for the evaluation of the price of their product.

    The right price for your product can only be determined as per the market norms that are set by the already existing companies.

    For example, if your focus is to build a large market share for your product you may launch your product at a relatively low price than your competitors. This might help you gain customer trust for your future products and services.

    However, if you want your customers to feel like they are about avail of some novel and exclusive services that are not available anywhere else, setting a price towards the higher end can be a good decision. If everything goes well and your customers believe you, this might help you establish your product as a brand right at its initial stage.

    6. Study the Market

    You cannot just decide your profit margins with your own mind. Neither can you set your price to match or beat the price of your competitor? You will have to study the market to understand how the other brands are doing and what the customer requirement is. However, the foremost thing to do is to identify your target audience so you can survey the market keeping their needs in consideration.

    Surveying the market will also give you an idea about the other factors that may affect the price or sale of your product. These factors may include simple Geographical issues, legal concerns, etc.

    A major example of such factors is the extreme shift observed in the market during the COVID-19 times. As per a survey, owing to the lockdown restrictions the tour & travel industry collapsed badly. On the other hand, the technology industry observed an upsurge.

    7. Update the Product Prices

    The price at which you launch your product does not have to stick with it forever. There are a lot of regular ups and downs in the markets that will affect the variable and fixed costs associated with your product.

    Therefore, you will have to remain updated with the latest market trend and keep revising the price of your product accordingly.

    Other than the market trend, there can be other valid reasons for you to raise the price of your product. For example, when you decide to re-establish your company from a value-oriented service provider to a high-quality brand, you may apply a price hike. This is known as strategic change.

    Other reasons may include a competitor raising the price of their product. This usually means that the overall price of that industry or service in the market is going up. Hence, it becomes obvious for other similar companies to hike their product price in a similar range.

    Conclusion

    Considering all the challenges it may be difficult for you to set the correct price for your product. However, by following the tips mentioned above, you will be able to make an informed decision.

    The simple things like knowing your costs and surveying the market as well as competitors can be of great value.

    Hope we could resolve your problem. You can thank us later.

    FAQs

    What are the factors to consider when setting a price?

    Include all the variable costs, calculate indirect fixed costs and break-even points, determine your profit value-based pricing, spy on your competitors, study the market, and update the product prices.

    How do you set a price for a product?

    Use different pricing plans, spy on your competitors, include all your costs and keep flexible pricing.

    What is the selling price formula?

    The selling price formula is: Selling Price = Cost Price + Profit Margin.

  • Amazon Pricing Psychology- 6 Ways Amazon Gets You to Spend More?

    Amazon, the company that started as an online retailer for books back in 1994 is now the largest e-commerce company in the world. As of January 07, 2022, the company is worth $1648.78 billion.

    Today almost everyone depends on Amazon and with good reason. You can find almost everything you would ever need delivered right to your doorstep. So how did Amazon get where they are today?

    Most importantly they’ve managed to stay at the top of the e-commerce business even with the rise of new competitors. To understand this growth and stability shown by the company, we’ll have to take a look at their history and analyze their biggest techniques that help them stay at the top.

    About Amazon
    The Psychology Behind Amazon’s Pricing

    About Amazon

    Founder and former CEO of Amazon, Jeff Bezos financed Amazon with $10,000 of his own money to get the company up and going in 1994. Amazon at that time was completely operated by Bezos, his wife, and a small staff team working in his garage in Bellevue, Washington. Shortly after in 1997, Amazon went public with a $300 million valuation at $1.96 per share.

    Jeff Bezos working from his office in 1999
    Jeff Bezos working from his office in 1999

    Amazon later on in 1999, allowed third-party sellers to sell their products using their website. Since the company already had satisfactory growth in the online sphere, retailers started using the platform with the goals of expanding their public reach and economy. Just within 4 months of letting third-party companies sell, over 250,000 customers had bought goods from a variety of different companies through Amazon.

    Every year Amazon has been getting better, offering more services and a better customer experience than before. In 2005, Amazon introduced its customer loyalty program known as prime. Prime gave users that extra fast delivery and service speed that they needed for a small monthly fee.

    Prime also expanded on to provide media services such as prime movies, music and gaming. Customers were more than happy to pay the monthly subscription for what they would’ve otherwise missed. At least that’s how the consumer mentality boosted Amazon’s sales after it launched prime.

    The very next year the company went ahead with Amazon Web Services(AWS) to consider and profit from the various cloud computing needs of the world.

    Amazon has also been actively developing the Amazon Echo line of smart products along with their assistant Alexa. The company has been growing ever since. Every year new products get added to Amazon, which starts bringing in new customers for the company.

    SaaS Pricing Guide: How to Decide the Right Price for your SaaS Product
    Deciding the right price for your SaaS product is not easy, a lot of research goes into it. So, here’s a strategy to help you decide the right price for your SaaS product.
    StartupTalkyDamini Bhandary

    The Psychology Behind Amazon’s Pricing

    Amazon’s success isn’t just because of the risks they take or companies they endorse, rather it’s mostly due to some clever marketing techniques. Communicating a product’s nature and value to a customer is essential for a successful e-commerce store. Here we’ll go through some of the well-known pricing strategies used by Amazon to boost sales.

    1. Prestige Pricing

    Consumer stores and shopping centers often use charm pricing as a way to get more sales. It’s common to see the price of a product just a cent below its actual cost. Prices like $4.99 seem cheaper compared to $5 when the difference is almost negligible.

    Prestige Pricing
    Prestige Pricing

    Prestige pricing is the exact opposite of this methodology. While some people may find lower prices more attractive, others may doubt its value and authenticity due to its lower prices.

    Prestige pricing is where the price of a commodity is rounded off to the nearest rounded figure so the price seems ideal. The higher and rounded prices make a product seem more valuable than it actually is.

    Customers are more likely to buy a product that will provide them with more value for money. That’s exactly what gets companies like Amazon more sales using this pricing method.

    2. Price Anchoring

    If you’ve ever used Amazon you might have noticed how you ‘always’ seem to get a better deal. Simple comparative pricing makes consumers feel like they’re getting better offers when in reality it’s just a way to promote sales.

    Price anchoring is a popular way of getting more sales. Several e-commerce stores including Amazon make use of a simple strikethrough price which enhances the value of the actual price.

    Although price anchoring and price discounts are different, the technique has been effective in gaining sales as shown by e-commerce statistics. In the world of digital stores, a sale is equivalent to a customer’s click. Hence price anchoring makes good use of perception to increase sales.

    3. Amazon Prime

    In 2022, about 142.5 million of Amazon’s total users are members of its Prime program. Amazon Prime is a paid subscription-based customer loyalty program that Amazon offers. Since its introduction in 2005, the number of prime users has been increasing progressively.

    Amazon Prime Users Growth in the U.S.
    Amazon Prime Users Growth in the U.S.

    Having a prime membership makes a user eligible for certain perks from Amazon. For starters, customers with prime get faster deliveries, access to special sales earlier, and Amazon’s media and entertainment services such as Prime Video, Prime Music, and Prime Gaming.

    Paying about ₹179 monthly gets you all these benefits and it’s no doubt why people prefer to subscribe to prime. The feeling of getting a higher priority and more gains is what prompts people to stay as prime users. Amazon Prime video generated $3.6 billion in revenue sharing in 2020.

    4. Comparative\Decoy Pricing

    Comparative pricing is a technique used to boost the sales of one product using a decoy product with alternative pricing. Let’s say you have a product that you’re interested in. If two products of similar nature are being presented, one with better overall value than the other, the choice is rather obvious. Comparative pricing is where a product is intentionally made to look bad to promote the sales of another product.

    Decoy Pricing in effect
    Decoy Pricing in effect

    While the decoy product dips in sales, the targeted product gets more sales and that’s completely intentional. The goal here is to get the customers to choose the targeted product instead of the other.

    5. Price Framing

    Everyone in marketing knows that a good sales pitch means a positive impact on sales. Price framing is how a product’s price is presented to the customers. The visuals associated with price presentation and context matter because a customer often makes their decision at the last minute and what they see has to appeal to their mindset.

    Simply adding additional text such as ‘only for’, ‘best deal’, ‘20% OFF’ makes the customer feel like they’re getting a bargain. E-commerce companies gain much more sales due to their marketing campaigns which use this method as well.

    6. One Time Deals

    Adding a time limit to deals and offers speeds up the decision-making process for customers and also makes products seem more valuable. Amazon has been offering limited-time deals for a while now and it’s common to see flash sales during festive seasons. Often these one-time deals aren’t much different from what you can get a product for, considering you have the patience to wait a while.

    As far as most common products on an e-commerce platform are considered, the prices never really stay high for long. It’s only a matter of time before new products rise and the older prices dip. However, customers are tricked into thinking that the reduced prices are indeed a limited-time offer and hence Amazon make huge sales just by adding a timer with a lower price.

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    Conclusion

    Amazon makes excellent use of modern-day technology and scientifically proven marketing techniques to always develop the perfect pricing to get sales going. It’s all about the customer mindset when it comes to e-commerce and that’s where the use of passively manipulative methods shines the most.

    Not all of it is ethical, but the majority of applied techniques are rather intuitive and that is what keeps Amazon’s sales up high during the roughest of times.

    FAQ

    How does Amazon use psychology?

    Decoy pricing, Price anchoring, Prestige pricing, and limited-time deals are some ways Amazon uses psychology to get you to buy more.

    Why do Amazon prices keep changing?

    Amazon keeps changing its prices according to trends and customer feedback.

    How does Amazon use psychology to get you to buy more?

    Amazon creates a sense of urgency by displaying the products left till it gets out of stock.

  • SaaS Pricing Guide: How to Decide the Right Price for your SaaS Product

    While doing a business, one of the most important things is to set a proper price for the product or service that you are selling. The pricing decides the future of your business and if it will reach the top and be successful.

    Now, in any kind of business you need to do a lot of research while deciding the price of the product or services. There are various factors that need to be taken into consideration during this crucial time.

    When we talk about the importance of technology in our life, the thing that has made the most impact has to be the Internet. Thanks to this, we are enjoying so many services in just a single touch of our fingers.

    Almost every business is on the internet and is providing services to its consumers through that. We live in a time, where we can now get applications over the internet. Instead of installing a software one, we can have the access to it through the internet and can also maintain it there. This service is called SaaS.

    Companies that are building SaaS products must set a correct price for them as their revenue depends on it. So, in this article, we will talk about how one should decide the right price of their SaaS product that will entice the audience and will also bring profits to the business. So, let’s get started.

    “The moment you make a mistake in pricing, you’re eating into your reputation or your profits.”

    -Katharine Paine

    Why Pricing is Important?
    What is SaaS Pricing?
    How To Price a SaaS Product?
    SaaS Pricing Models
    FAQ

    Why Pricing is Important?

    Pricing is important for two obvious reasons,

    • The first and foremost one is, giving value to the customers, when someone pays for a product or service; it means it is worthy enough to buy.
    • Another reason is that it helps the said company to step into the competitive market. If it has a good cost-to-value ratio, then naturally it makes it presence known as a competitor for other same businesses in the market

    What is SaaS Pricing?

    A SaaS pricing is nothing but a price model of software that one can get access to through the internet and can maintain it online instead of installing one into your device. The things that influence the price of the products are the marketing strategy, Target markets, and revenue objectives. A proper SaaS pricing model will lead to success for that business that deals with these products.

    How To Price a SaaS Product?

    As mentioned before the future of a company relies on its pricing strategy. Now, there are several strategies that can be applied while setting the perfect price for a SaaS product and those are:

    Cost-Based Pricing

    This strategy is very simple and easy to apply. You can count the cost of the product by just evaluating the amount that was used in the making and also providing the product to the consumers. It includes the development charge of the product, the salary of the employees and of course a little bit more amounts that will ensure profit from that product.

    Although there are some limitations revolving around this strategy like the earning will cover all the cost that was required during creating and providing the product. You can also fall behind your competitor as cost-based pricing doesn’t notice the price of the competitor’s product.

    Competitor Based Pricing

    This strategy involves setting the price of your product that matches your competitor’s standards. This model is very easy to find, as in the competitor’s website you get to observe the price of their SaaS products.

    When you are new in this business, it is not possible to know the entire amount that will be cost for providing this service. So, pricing the product same as the price of your competitors gives you a general idea that can generate you customers for your SaaS product. It also has a limitation, if you consider your competitor’s pricing, you might charge too little for your service, which is definitely not healthy for your business.

    Promotional-Based Pricing

    This strategy is about lowering the product’s price to attract more consumers and increase their demand quickly and it is just for a limited time. The time limit chosen for this offer can attract a good number of consumers towards the product, which may result in an increase in the demand for the SaaS product.

    This can be applied for only a short amount of time and it can also backfire because if the promotional-based pricing continues, the consumer might question the product’s value.

    Value-Based Pricing

    Establishing this strategy takes a good amount of time and require a lot of work. In this strategy, the price of the product completely depends on the consumers. The value of the products decides their fate and the audience’s opinion of the product’s worth matters the most here.

    Here, even if you decided to make the price higher, if the customer is willing to pay then your SaaS product is definitely a hit. On the other hand, this strategy’s biggest disadvantage is that the consumers that are divided in a group find the value of your product different; going for the same price of the product becomes difficult.

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    SaaS Pricing Models

    This section deals with the pricing models that can be used to charge the users of your SaaS products.

    Flat Rate Pricing

    This model is extremely simple, here the business offers only one price for a couple of features that are tagging along with the product. It is preferable because it is easier to sell and this single price is for everyone thus not making it complicated.

    Usage-Based Pricing

    In here, the pricing depends on the usage of the product by the customer, that is if you use the service more, then you have to pay more and if less, then your amount will decrease. This way the customers can find reliability in this as they are only paying for the amount of service that they have used. It is also called Pay As You Go Model.

    Per Feature Pricing

    The users have to pay here for every feature that they are going to use It is best for those company that wants every feature of their product to be used by the customers.

    Tiered Pricing

    This includes giving out different packages that have different features in them for the customers to use. Here, the customer chooses the package that is more compatible with them and pays for that only. It can increase your revenue if your customer after using one package decide to use another one so that they can attain other good features that come with that different package.

    Conclusion

    The products and services that SaaS businesses are providing to their customers, the must-have contain a proper price. The business needs to follow a correct pricing strategy that will help them in establishing the business in front of their customers, and then only it can survive in the competitive industry.

    FAQ

    What is the Full form SaaS?

    The full form of SaaS is Software As A Service.

    What is SaaS Invoice?

    It is an automated system where it helps in billing clients recurring basis.

    Which is The Best Way For Pricing A Product?

    Cost-based pricing is the best way to price your product.

  • Apple allows Developers to accepts payment outside iOS App – Explained

    On 26th August, Apple Inc. the leading American corporation announced that it will allow iPhone or iOS app developers to use alternative payment options to the App store. The new advertising policy will help the developers to promote alternative pricing, excluding the apple cut.

    However, the catch to this is that the app makers are not allowed to buy or add subscribe button that will lead to a webpage to complete the transaction. This is why app manufactures can promote alternative pricing plans and share other payment information only on their website or by sending their users an email.

    According to Apple’s statement in the press release, the users of the apps must give their consent to the communications and must also have the right to opt-out. The tech giant has also expanded from lesser than 100 price options to over 500 different price options for subscriptions, in-app purchases and paid apps.

    The reason behind the new policy
    How can iOS users avail other payment options?
    Apple’s statement on the new policy
    Other concessions made by Apple
    Frequently Asked Questions

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    The reason behind the new policy

    For many years, Apple has been surrounded by controversies about its practices and treatment of developers on the App Store. Apple has made this change because many small app developers were filing a lawsuit against the company. This move is said to be the biggest and the most effective change the company has made in response to the accusations made by small app developers saying Apple uses monopolistic tactics on its App Store.

    The company has finally decided to include new concessions and a new fund that will help small developers in America instead of settling the lawsuits. Up until now the iOS developers had to pay a share of their total revenue that was generated on the Apple app store, which was called the Apple Tax. Earlier Apple had said that it will try to resolve a class-action suit from the American app developers.

    How can iOS users avail other payment options?

    Since the App developers are not allowed to advertise payment methods within the apps themselves and can advertise other payment options only through email or their website, the users of the apps can sign up for alternate payment options on the app’s website. Besides payment options, Apple will also allow App developers to make over 500 alternative pricing options for subscriptions, in-app purchases and paid apps, among others.

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    Apple’s statement on the new policy

    According to the statement by Phil Schiller who oversees the App Store said that, “From the beginning, the App Store has been an economic miracle; it is the safest and most trusted place for users to get apps, and an incredible business opportunity for developers to innovate, thrive, and grow.” He also added that, “We would like to thank the developers who worked with us to reach these agreements in support of the goals of the App Store and to the benefit of all of our users.”

    Other concessions made by Apple

    Apple will also continue to take its revenue cut but will allow a reduced commission to app developers that earn lesser than $1 million through the app store between June 2015 and April 2021. This is known to account for over 99% of the Apple app developers. This business can pay a reduced commission for the next three years as a part of Apple’s App Store Small Business Program.

    Apple will also be publishing an annual App Store transparency report that will include important information and statistics about the app review process. It will also contain significant data such as the number of apps rejected and the reason behind it, number of customers, data based on search queries and results written in detail.

    During the difficult times of the Covid 19 pandemic, the tech giant had pledged its support to small businesses by offering over $100 million to the app developers. Over the years Apple has made many concessions in order to keep boundaries such as not allowing third-party apps. There was also no mention of the third-party app stores or page loading of apps in the press conference.

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    Frequently Asked Questions

    What is the new apple policy for app developers?

    Apple is allowing its app developers to advertise external payment methods through their website or email.

    What is Apple Tax?

    Apple tax is the share of the total revenue generated on the app store that is paid by iOS developers to Apple.

    What are the other concessions Apple toward the app developers?

    During the difficult times of the Covid 19 pandemic, the tech giant had pledged its support to small businesses by offering over $100 million to the app developers.