Leveraging Product Groups in eCommerce: A Strategic Approach to Pricing


Product groups are a cornerstone of effective pricing strategy in eCommerce. Today, we're diving deep into the concept of product groups and how they can supercharge your business. Get ready to take control, optimize like a pro, and prevent price cannibalization in the most strategic way possible.

The Force of Product Groups

Product groups are clusters of related products. These groups can be based on type, brand, usage, or even customer segment. By bringing these products together, you can flex your pricing muscles and implement consistent strategies across the board. Say goodbye to pricing chaos and hello to streamlined management! This approach can be especially useful in situations where price changes need to be implemented across a broad range of products.

Imagine this: one product's price changes, and suddenly, chaos ensues as other prices go haywire. Well, not with product groups! With the use of locked pricing increments, when one product's price changes, the prices of all its group mates follow suit. It's like an epic synchronized dance, ensuring a harmonious pricing structure across the entire group. No confusion for your customers, just a seamless experience.

Optimizing Pricing to Prevent Cannibalization

Cannibalization might sound like something out of a horror movie, but fear not! Product groups are here to save the day. Picture this: you have a premium product and a standard product. To prevent the cheaper product from stealing the show, you maintain a consistent pricing relationship. The premium product is always priced 20% higher than the standard one. No cannibalization, no drama—just a strong lineup of products, each shining in its own spotlight.

Value Classes: The Secret to Tiers of Greatness

Value classes are another useful tool in managing pricing within product groups. These are tiers of products within a group, categorized based on their value and quality. For example, you might have a value class for budget products, another for mid-range products, and a third for premium products. 

When pricing products within these value classes, it's important to ensure that the prices don't move too close to the next value class. If a mid-range product is priced too close to a premium product, customers may opt for the higher-quality product, leading to cannibalization of the premium product's sales.


Congratulations, pricing hero! You've uncovered the power of product groups in the eCommerce realm. By locking pricing increments, preventing cannibalization, and playing with value classes, you're now equipped to conquer the pricing battlefield. As the eCommerce universe continues to evolve, these strategies will be your secret weapons, ensuring profitability and an unbeatable edge against the competition.

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