Pricing based on customer geolocation?

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Tourist
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I'm a developer and for my first APP for Shopify, I decided to build a Shopify Embedded App that Merchants can choose products that gives discounts based on Customers geolocation. I've seen custom made eCommerce stores offer discounts based on the lower purchasing power of some countries and thought this is a neat feature to could potentially make it possible for more people to buy a product based on their relative purchasing power. Of course it works better for information products like courses that have high margin. Would any Merchants want to use an APP like this if it was made?

 

Or suggest a better idea as an alternative?

 

Cheers.

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Just be aware that this topic is a very sensitive one. With geo-blocking forbade in EU, the pricing based on location can't have a better future.

Also, remember the Orbitz mistake. They noticed that Mac users were open to spending up to 30% more on bookings, so they've started to display different prices.

And yes, eventually their visitors found out, and they didn't like it.

 

Although, a discount could be interesting. A discount based on specific events in that country - Public holidays, local events, etc.

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Tourist
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Yes, I am thinking in terms of mainly a discount feature. The geo-targeted price will never be higher than the original price of the product.

 

I've seen this feature on digital products in the past such as courses. Eg. If a course sold for 100$, for countries like Thailand where the the average monthly salary is 750$, That person would never be able to justify paying 100$ for the product which is 14% of the persons' monthly income. On the other hand, the seller loses a chance to make the sell on a essentially infinite margin product.

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Tourist
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Oh that's really neat. Thanks!

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New Member
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Yes please for USA States
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New Member
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Yes.  

 

In order to provide "free shipping" (which is expensive because long distances) my prices are set to US prices including shipping.  But, there is demand where the product is made in the Philippines, and I would like to set much lower prices, just in that one country, because rather than US$40 delivery, it's US$5.   

 

So rather than tiered pricing, same pricing plus shipping cost included for shipping to the appropriate market.  I don't want to the customer to see the high shipping cost.

 

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New Member
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This is good idea
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Tourist
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Hey, that's an interesting use case.

 

Isn't the shipping price already adjustable based on Country of customer though?

 

Is your store public, would like to take a look to get a better idea.

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New Member
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I'm trying to direct ship from the Philippines, so I have estimated
shipping prices

This applies to 90% of my SKUs. +is dollars added to the price. This is DHL
shipping, but may also add in duty and deliver duty paid to customer.

SEA +10
Rest of Asia + Australia +20
North America +40
Europe +50

So there is one app where I can have different prices based on IP address.

I can hack with a currency converter, by fixing the exchange rate to get
closer to normal price with shipping. (if actual FX is 50:1, use 20:1, or
instead of 1.35:1, 1.10:1)

But, this doesn't help me for SKUs with higher shipping.


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