When you think of your customer's biggest concerns, is price transparency on the list? If not, your ecommerce business might be missing out on an opportunity to build its customer base. 

Now more than ever, consumers insist on finding market rates and making price comparisons before completing a purchase. In fact, the modern consumer puts so much time and effort into researching prices that 74% say they've walked away from purchases because the decision was so overwhelming.

Sure, you can hide your pricing information from the public. But if your potential customer can't find the numbers on your website or your social media accounts, they'll probably search for it elsewhere… and the results might not be ideal. For example, they might find inaccurate information in a customer review or just give up and visit a competitor's site.

What is transparent pricing?

Transparent pricing is the practice of making your pricing information clear and easy for customers to find. Businesses that practice transparency around their expenses and pricing make sure that customers don't have to hunt down information about rates and fees. Instead, they share the following kinds of details up front: 

• Price estimates, including all applicable taxes, shipping fees or service charges
• A breakdown of production costs, from sourcing to manufacturing and labor expenses
• A side-by-side comparison of their products or packages, including the features and prices for each one
• Tracking information that displays how a price has changed over time 
• Comparisons between their prices and competitors' 
• Answers to frequently asked questions (FAQs) about return policies and fees

How does transparent pricing help your ecommerce business? 

Are you surprising customers with extra fees at checkout? According to a report on online shopping cart abandonment, that's the most effective way to lose a sale. 

By contrast, when you willingly disclose all of your pricing information up front, customers perceive your brand as more honest and trustworthy, which is a recipe for brand loyalty and greater sales. According to a Salsify survey, 46% of U.S. consumers will pay more for a product that's sold by a brand they trust. 

Four ways to make your pricing more transparent

If you haven't adopted a transparent pricing policy for your business, now is the time to flesh one out. Here's how you can start. 

Create visuals

Don't make your customers pore over the fine print or visit another website in search of your pricing information. Instead, use infographics on your website and social media so potential customers can easily scan for relevant information, including: 

• Reference prices, or the standard prices for your industry
• Comparison of your product/price to your top competitor's offerings
• Discounted rates versus regular rates
• A clear list of all the fees they can expect to pay

For an example of how to do this, take a look at the homepage of Mark Cuban Cost Plus Drug Company. In an industry not known for its price transparency, this company gives you a refreshingly clear overview of exactly how its pharmaceutical drugs are priced, from the 15% markup to its $5 shipping fee.

Another great example is clothing retailer Everlane. On each product page, you'll find a breakdown of the various costs involved with production, including materials, labor and transport.

Use proactive messaging

Before you change your pricing, have a plan in place. You can use this checklist to make sure you have clear and consistent messaging across all channels:

• If applicable, reach out directly to customers who will be impacted and give them ample notice. 
• Determine if you can temporarily offer a reduced rate to long-standing customers.
• For significant increases, prepare an explanation that you can share via email, your website and social media. Inform customers how the change will help you maintain quality. 
• Make sure everyone in your organization understands the messaging around the change and can explain the price increase to customers.
• Ensure that prices are updated across all web pages and platforms.
• Invite feedback on prices and keep customer lines of communication open.

Give the customer options

You're probably concerned that transparent prices will scare new customers away. One way to ease the sticker shock for customers new and old is to offer flexible pricing structures. Depending on your products or services, you can give them the option to tailor their price point based on a variety of preferences, such as:

• Higher quality materials
• More personalization
• Access to early or limited releases
• Faster delivery

Tell your story

Customers want to know how the sausage is made, so to speak. In the Salsify survey, consumers said they were more likely to buy local products (15%) and products where information about ingredients and sizes was available (13%). 

That means you can win over even more customers by tying pricing details to your unique business story. For example, instead of just listing your unit production cost, share information about where your products are sourced and packaged, and show them the care and effort that goes into providing excellent experiences for each customer.