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3: Offer at Retail

Shoppers believe that because an online merchant doesn't have a bricks-and-mortar store, his overhead is low, and he can pass on these savings in the form of lower prices.

I know. I know. That server farm you have taking up the space of a small condo costs as much to set up and maintain as a storefront in a strip mall—if not more. But shoppers don't believe it. So don't sell at retail. Sell at some kind of discount—at least 10% off suggested retail price or more.

If you can't offer a discount on the first sale, offer a value-added service; perhaps a coupon good for a free item or a discount on a future purchase. You might consider partnering with another web merchant selling products that are compatible with yours. If so, offer shoppers a bundled price of your product or service with your merchant partner's product or service.

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