12 Pricing Techniques: How to Increase E-commerce Sales with Psychology and Behavioral Economics

Last Updated: June 22, 2026

※This article is supervised by Hayato Shimabukuro, CEO of SOLSTAR Inc., who has been involved in the construction and operation support of e-commerce sites utilizing Shopify for over 9 years in the e-commerce industry.

Pricing for e-commerce sites is not simply a matter of "cost + profit." For the same product, purchase rates and average order values can change depending on how the price is presented and compared.

Especially in e-commerce, it's easy to utilize principles of pricing psychology and behavioral economics because of the flexibility to set comparative displays, free shipping, bundle sales, and more.

This article will explain 12 pricing techniques that are easy to apply to e-commerce sites, along with their psychological background and implementation methods in Shopify.

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What you will learn from this article

• 12 pricing techniques applicable to e-commerce sites
• The impact of pricing psychology and behavioral economics on sales
• Specific implementation methods in Shopify
• Verification methods and precautions after price changes

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Why pricing changes sales

Before diving into pricing techniques, let's understand why psychology influences pricing.

Price is not just a number; it's a criterion buyers use to judge whether something is "expensive," "cheap," "a good deal," or "looks high quality."

In other words, what's important in pricing isn't just the monetary amount itself.

• What it's compared to
• In what order it's presented
• How discounts are expressed
• How free shipping and bundle sales are designed

These factors change how users perceive the price.

Price is judged by "comparison," not "number"

People do not judge prices as absolute values.

For example, if a ¥3,000 T-shirt is displayed alone, it might feel "normal." However, if its original price of ¥6,000 is crossed out and it's displayed as ¥3,000, it's more likely to feel like "a good deal."

Even if the product is the same, the impression of the price changes just by having a comparison point. In this way, people judge prices based on some standard. In psychology, this standard is called a "reference point."

Many pricing techniques relate to how this reference point is designed.

Why pricing psychology is effective for e-commerce sites

Pricing psychology can be used in brick-and-mortar stores, but it's especially compatible with e-commerce sites.

There are three main reasons:

• Price displays and discount displays can be flexibly changed.
• Free shipping conditions and bundle sales can be easily set up in the admin panel.
• The effectiveness of changes can be confirmed using Shopify Analytics and GA4.

In other words, e-commerce sites make it easy to follow the cycle of "formulate a hypothesis → implement → analyze data → improve."

At SOLSTAR, when improving Shopify sites, we don't just look at price in isolation but also consider product pages, cart flow, free shipping conditions, and CRM measures.

Pricing is both an entry point for sales improvement and a crucial element that affects how a brand is perceived.

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12 pricing techniques usable on e-commerce sites

From here, we will introduce 12 pricing techniques that are easy to apply to e-commerce sites.

You don't need to adopt all of them at once.

Start by trying those that align well with your product unit price, brand image, and the products you want to sell.

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Odd-Even Pricing: Making prices look cheaper like ¥1,980

Odd-even pricing is a strategy where prices are set slightly below a round number, such as ¥1,980 instead of ¥2,000, or ¥498 instead of ¥500. It is one of the most commonly used pricing techniques in e-commerce.

Even with a small difference, users tend to perceive "¥1,980" as cheaper than "¥2,000."

[Shopify Implementation Method]

In Shopify, this can be implemented by simply changing the product price in the product management screen.

Examples:

• ¥2,000 → ¥1,980
• ¥5,000 → ¥4,980
• ¥10,000 → ¥9,980

This method is particularly useful for products that are often compared, such as daily necessities, food, miscellaneous goods, and apparel.

On the other hand, for brands that emphasize luxury or high-end appeal, odd-even pricing might convey a sense of cheapness.

For premium products, using round numbers like ¥20,000 might be more appropriate.

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Left-Digit Effect: Pricing below a round number

The left-digit effect is a psychological phenomenon where people read prices from left to right and tend to form a general impression based on the first digit.

For example, the difference between ¥2,000 and ¥1,980 is only ¥20.

However, by changing the left-most digit from "2" to "1," users are more likely to perceive the price as being in the "¥1,000s" rather than the "¥2,000s."

This is why prices like ¥1,980 and ¥9,800 are commonly used.

[Shopify Implementation Method]

When setting odd-even prices, instead of just lowering the price by a few yen, consider whether the left-most digit changes.

Examples:

• ¥3,000 → ¥2,980
• ¥10,000 → ¥9,800
• ¥20,000 → ¥19,800

However, for items priced in the hundreds of yen, displaying them as ¥198 or ¥298 might feel more natural.

It's important to match the notation users are familiar with for each price range.

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Anchoring Effect: Showing a high benchmark first

The anchoring effect is a psychological phenomenon where the first piece of information encountered becomes a benchmark for subsequent judgments.

For example, after seeing a ¥10,000 product, a ¥5,000 product will appear relatively cheap.

On e-commerce sites, you can create this anchor by displaying regular prices, higher-end products, list prices, or bundle prices.

[Shopify Implementation Method]

In Shopify, you can utilize anchoring in the following ways:

• Display regular prices alongside sale prices.
• Show higher-priced items first.
• Introduce higher-grade products within the product page.
• Compare the bundle price with the total price of individual items.

Especially for brands with premium lines or higher-tier plans, showing higher price points first can make mid-range products seem more appealing.

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Comparative Display: Showing regular price and discounted price side-by-side

Comparative display is a method of showing both the regular price and the selling price side-by-side.

For example,

• Regular Price: ¥6,000
• Selling Price: ¥3,980

Displaying prices this way allows users to intuitively understand "how much cheaper" the item is.

This technique works very well with the anchoring effect.

[Shopify Implementation Method]

In Shopify, you can display a strikethrough regular price by setting the "Compare-at price."

However, a word of caution:

It is advisable to avoid displaying a price that was never actually sold as if it were the regular price. Misleading double pricing can lead to issues under the Act against Unjustifiable Premiums and Misleading Representations.

When using comparative displays, use prices that were genuinely sold for a certain period or regular prices that have a clear basis.

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Matsutake-Ume (Gold, Silver, Bronze): Guiding selection to the middle option with three choices

Matsutake-Ume is a method of offering three choices with different prices and contents, making the middle option more likely to be chosen.

For example,

• Lite Plan
• Standard Plan
• Premium Plan

When presented in three tiers, most users tend to avoid the extremely cheap or expensive options, making the middle one more attractive. This is also known as the "extreme avoidance effect."

[Shopify Implementation Method]

In Shopify, you can create a Matsutake-Ume structure in the following ways:

• Offer products in three different sizes.
• Provide a single item, a 2-item set, and a full set.
• Offer one-time purchases, subscriptions, and bulk purchases.
• Display service plans in three tiers.

If there's a specific product or plan you want to sell, placing it in the middle tier will make it more likely to be chosen.

From SOLSTAR's perspective, it's crucial not just to list three options, but to design them so that their differences are immediately clear even on a smartphone.

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Decoy Effect: Making the target product appear more attractive

The decoy effect is a method of making a target product more attractive by introducing a less appealing "decoy" option.

For example, consider the following three options:

• Single item: ¥3,000
• 2-item set: ¥5,500
• 3-item set: ¥5,980

In this case, because the price difference between the 2-item set and the 3-item set is small, the 3-item set appears to be an excellent deal.

While the 2-item set might not be chosen frequently, it serves the role of making the 3-item set look more appealing.

[Shopify Implementation Method]

In Shopify, this can be implemented in the following ways:

• Adjust the price difference between individual items and set products.
• Offer products in different capacities/sizes.
• Display subscription and bulk purchase options side-by-side.
• Add "recommended" badges.

However, overusing the decoy effect can sometimes give users an unnatural impression.

It's important that there's a "genuinely convincing difference" when comparing the options.

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Bundle Sales: Increasing average order value by selling as a set

Bundle selling is a method of selling multiple products as a set.

Examples include skincare sets for cosmetics, assorted food sets, and coordinated apparel sets.

For users, it reduces the effort of choosing items one by one and creates a reason to buy in bulk.

For businesses, it's a strategy that can easily increase the average order value.

[Shopify Implementation Method]

In Shopify, bundle sales can be implemented using the following methods:

• Register the set of products as a single product.
• Use apps like Shopify Bundles.
• Create a set page combining related products.
• Display a comparison between the total price of individual items and the set price.

In bundle selling, it's important not just to group products, but to explain "why this combination."

For example, for skincare, you might say "essential set for day and night," or for food, "tasting set recommended for first-time buyers," creating a reason for purchase.

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Bulk Purchase Discount: Increasing the number of items purchased

A bulk purchase discount is a pricing strategy where the more items purchased, the greater the discount.

For example,

• 10% off for 2 items
• 15% off for 3 items
• Second item half price

This type of promotion is effective. It's a useful method when you want to increase the average order value.

[Shopify Implementation Method]

In Shopify, you can set quantity discounts using automatic discounts or discount codes.

Examples:

• 10% off for 2 or more items
• ¥500 off for orders over ¥5,000
• 15% off when purchasing 3 eligible items

Bulk purchase discounts work well with consumable goods, food products, daily necessities, apparel accessories, and other items that are frequently purchased in multiples.

On the other hand, for high-priced items or those purchased infrequently, focusing on warranty, quality, and reviews might be more effective than aggressively promoting bulk purchases.

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Free Shipping Threshold: Creating "X more yen for free shipping"

A free shipping threshold is a method of offering free shipping for purchases above a certain amount, such as "free shipping for orders over ¥5,000."

This is a very important pricing strategy for e-commerce sites.

For example, if a user's cart total is ¥4,200, displaying "¥800 more for free shipping" can create a reason for an additional purchase.

[Shopify Implementation Method]

In Shopify, you can set the "free shipping for orders over a certain amount" condition in the shipping settings.

Furthermore, using theme features or apps, you can display the remaining amount until free shipping in the cart or header.

When setting a free shipping threshold, it's good to aim for an amount slightly higher than your average order value.

Examples:

• If the average order value is ¥4,200 → Set the free shipping condition to ¥5,000.
• If the average order value is ¥7,800 → Set the free shipping condition to ¥9,000.

However, if the merchant bears too much of the shipping cost, it can cut into profits.

It's important to design this not just based on sales, but also on gross profit.

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Discount Rate vs. Discount Amount: Changing presentation based on product unit price

Even with the same discount, the impression can change depending on how it's presented.

For example, for a ¥1,000 product, "20% OFF" might feel like a bigger deal than "¥200 OFF."

On the other hand, for a ¥50,000 product, "¥5,000 OFF" might have more impact than "10% OFF."

In practice, it's easier to differentiate as follows:

• Low-priced items: show as a discount rate
• High-priced items: show as a discount amount

[Shopify Implementation Method]

In Shopify, when setting discount codes or automatic discounts, you can set both percentage discounts and fixed amount discounts.

Examples:

• ¥1,000 product → 20% OFF
• ¥30,000 product → ¥3,000 OFF

If the notation is inconsistent across the store, it can confuse users.

For each campaign, decide whether to display a discount rate or a discount amount.

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Prestige Pricing: Intentionally making prices look higher to convey luxury

Prestige pricing is a method of setting a slightly higher or round price to convey quality and brand value.

It's not always best to make all products appear cheap.

For products that emphasize luxury, scarcity, or specialization, a price that is too low can actually lead to uncertainty.

For example, for a premium line product, displaying ¥20,000 might seem more on-brand than ¥19,800.

[Shopify Implementation Method]

When using prestige pricing, keep the following in mind:

• Avoid overusing odd-even pricing.
• Do not overuse discount badges.
• Limit sale displays.
• Communicate quality through product descriptions and photos.
• Establish a strong brand story.

Simply setting a high price won't convince users.

You need to convey the reasons for the price through the product page, photos, reviews, and brand description.

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Price-Quality Signal: Utilizing the psychology that higher-priced items appear better

When users cannot immediately judge the quality of a product, they often use price as a deciding factor.

In other words, the price itself can act as a signal of quality.

This tendency is particularly strong for the following types of products:

• Luxury apparel
• Jewelry
• Beauty products
• Specialty food products
• Gift items
• Products that emphasize craftsmanship or materials

For such products, it is more important to justify the price than to make it appear cheap.

[Shopify Implementation Method]

When using price as a quality signal, the overall design of the product page is crucial.

• Carefully explain materials and manufacturing methods.
• Improve the quality of product photos.
• Include reviews and usage scenarios.
• Reduce the use of "cheap-looking" badges.
• Maintain the brand's worldview.

At SOLSTAR, when building or redesigning Shopify stores, we not only consider the price but also ensure that "the presentation matches the price."

Especially for branded merchandise, it is important to consider pricing, design, user flow, and product page information architecture as a cohesive whole.

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Quick reference guide to recommended techniques by objective

The 12 techniques introduced so far do not need to be used all at once.

Choose the measures to prioritize according to your objectives.

Recommended quick reference table by objective

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SOLSTAR's approach to pricing improvement

Pricing techniques, when combined with overall store improvements, are more likely to lead to results than when used in isolation.

At SOLSTAR, when improving Shopify sites, we don't just look at pricing; we also check the following elements:

• Is the value conveyed on the product page?
• Is there a sense of justification for the price?
• Are free shipping conditions contributing to an increase in average order value?
• Are discounts detracting from brand value?
• Are customers abandoning their carts due to the cart flow?
• Is there a clear path for repeat purchases?

Price is not merely a number; it is connected to the entire design of the e-commerce site.

First pricing techniques to try

If you're looking to review your pricing, we recommend trying the following in this order:

1. Odd-even pricing
2. Free shipping threshold
3. Comparative display
4. Matsutake-Ume (Gold, Silver, Bronze)
5. Bundle sales

These are relatively easy to implement in Shopify and are effective techniques for e-commerce site improvement.

However, for branded products or high-priced items, making them appear cheap can sometimes have the opposite effect.

In such cases, focus on prestige pricing and price-quality signals, and ensure the presentation matches the price.

Always verify after changing prices

Pricing is not a "set it and forget it" task. After making changes, you need to check the numbers to see if they are actually producing results.

Key metrics to check include:

• Conversion rate
• Average order value
• Sales
• Gross profit
• Add-to-cart rate
• Cart abandonment rate
• Repeat purchase rate

Using Shopify Analytics and GA4, you can see changes before and after price adjustments.

When verifying, pay attention to the following points:

• Don't make too many changes at once.
• Observe for at least 2-4 weeks.
• Consider the impact of days of the week and campaigns.
• Look at gross profit, not just sales.
• Document the reasons for price changes internally.

Changing prices too frequently can erode user trust.

Make decisions based not only on short-term sales but also on brand trust.

Precautions regarding the Act against Unjustifiable Premiums and Misleading Representations in pricing

When displaying prices, it is especially important to be careful about dual pricing.

For example, displaying a high price that was never actually sold as a "regular price" and then offering a significant discount from it can lead to issues under the Act against Unjustifiable Premiums and Misleading Representations.

Shopify's Compare-at price is a convenient feature, but its use requires caution.

When displaying a comparative price, check if:

• It was actually sold at that price.
• It is a regular price with a legitimate basis.
• It doesn't always appear to be on sale.

Pricing techniques are not meant to deceive users.

It is important to use them to accurately convey product value and facilitate purchasing decisions.

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Frequently Asked Questions

Q. Is it okay to change prices frequently on Shopify?

Changing prices frequently in a short period can undermine user trust. After a price change, it's recommended to observe the numbers for at least 2 to 4 weeks before making further judgments.

Q. How do I use Shopify's Compare-at price?

The "Compare-at price" feature is used to display a regular or pre-discounted price. When displayed alongside the selling price, it shows a strikethrough comparison. However, avoid setting an unsubstantiated high price.

Q. What should be the free shipping threshold?

It is generally recommended to set the free shipping threshold slightly higher than your average order value. For example, if your average order value is ¥4,200, setting free shipping at ¥5,000 or more can encourage additional purchases.

Q. Should luxury brands also use odd-even pricing?

For products that prioritize luxury and brand value, odd-even pricing can sometimes convey a sense of cheapness. For premium products, a round number like ¥20,000 might be more appropriate.

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Summary: Pricing is not "set it and forget it"

In e-commerce pricing, not only the price itself but also its presentation and the context of comparison are crucial.

This article introduced the following 12 pricing techniques:

• Odd-even pricing
• Left-digit effect
• Anchoring effect
• Comparative display
• Matsutake-Ume (Gold, Silver, Bronze)
• Decoy effect
• Bundle sales
• Bulk purchase discount
• Free shipping threshold
• Discount rate vs. discount amount
• Prestige pricing
• Price-quality signal

The key is to use these techniques selectively, matching them to your products and brand.

Some products should be made to look cheaper, while for others, maintaining a sense of luxury is essential.

Furthermore, pricing is not a one-time decision. You need to continuously monitor and improve based on conversion rates, average order values, gross profits, and repeat purchase rates, using Shopify Analytics and GA4.

If you're overwhelmed by daily operations and can't dedicate time to pricing strategy or store improvements, consulting an external partner is an option.

SOLSTAR supports the construction, migration, and operational improvement of e-commerce sites using Shopify. If you're looking to review not just pricing but also product pages, user flows, CRM, and analytics environments, please feel free to contact us for a free consultation.

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References

• Anderson, E. T. & Simester, D. I. (2003) "Effects of $9 Price Endings on Retail Sales", Quantitative Marketing and Economics (Research on the effect of odd pricing/prices ending in 9 on demand)
• Kahneman, D. & Tversky, A. (1979) "Prospect Theory: An Analysis of Decision under Risk", Econometrica (Prospect theory, loss aversion, reference points)
• Dan Ariely, Predictably Irrational (Widely known for decoy effect and the perceived value of "Free")
• Kolenda, "Pricing: A List of Tactics" — https://www.kolenda.io/guides/pricing (A systematic reference for pricing psychological tactics. This article independently reconstructs the framework of that guide with reference to research and the context of Japanese e-commerce implementation.)