Think of your online store as your favorite ice cream shop—
You’ve got plenty of customers walking in, but some look a little lost—unsure where to order, or they completely miss those special flavors tucked away in the back. And then some walk out without buying a thing, even though you know your ice cream is the best in the whole city.
It makes you wonder, is there something they’re seeing that you’re not? Or maybe something you’re seeing that they’re not? Because from where you stand, everything looks great. The menu is laid out perfectly, the fonts are crisp, the images are sharp, and your color scheme is on point.
But something's off, and the proof is staring right at you—visitors aren’t sticking around. Some even leave the moment the door chime rings.
That’s when you start thinking, maybe if I rearrange a few things and put that irresistible new flavor right up front, it’ll turn things around. With a few changes, sales could take off, and everyone walks away with a smile (and a cone).
That’s what split testing does for your website! It’s like testing different layouts for your ice cream shop to see which one gets more people excited to buy.
Maybe if the "Order Now" button was a little bigger or that important info was higher up on the page, visitors would “scoop” up what you’re offering faster.
By testing different designs and structures (like where buttons are, how the menu looks, or how you show off your products), you figure out what makes your customers feel like everything’s easy to find and irresistible to click.
It’s all about making your visitors’ experience smoother, just like a scoop of ice cream on a hot day!
Our Focus—Prices
In this lesson, however, we won’t cover everything about split-testing a website—that will take forever. Instead, we will focus on arguably the most important information on your online store—PRICES.
Why I think it’s the most important? Well, that’s because the way you show prices can make or break that "Oh, I need this!" moment for your visitors.
Some people love seeing a big ol' discount upfront, while others feel more comfortable with transparent pricing that includes shipping right from the start.
There are bargain hunters as well… lots of them. Those who light up at the sight of a “limited-time offer” or the sweet satisfaction of free shipping.
The trick is figuring out what makes your customers tick. Maybe that charming $49.99 feels like a deal, or perhaps a clean, round $50 looks more straightforward and trustworthy.
Even the little details like whether you show a crossed-out price with a juicy discount or just the final amount can completely change how your visitors feel about hitting that "buy" button.
At the end of the day, it’s all about creating a pricing presentation that clicks with your audience. When they see a price that feels just right, they’re more likely to stick around, add to cart, and complete that purchase.
Split testing your product prices on your website is not about copying what works for everyone—it’s about understanding the psychology behind how your customers—not other brands’ customers—perceive value.
There are plenty of ways to display your product prices on your website, and what works best for one store might not be the same for another. That’s where split testing comes in—it helps you figure out the most effective option for you.
Take the most straightforward method: price variations. This is where you experiment with a couple of price points for the same product. On the surface, this sounds simple—test a $50 price against a $45 or $55 option, and see which one moves the needle.
But why does this work? Well, it taps into the concept of perceived value. According to research by William Poundstone, author of Priceless: The Myth of Fair Value, even small changes in price can alter the way customers see a product's worth.
When people see a price tag that feels "just right" for the quality or features they expect, conversions jump. In a simple A/B test, raising or lowering the price by 10% might surprise you by revealing that customers are willing to pay more—often without it hurting sales.
Now, throw a discount into the mix. It’s tempting to think that discounts always win, but do they really?
Testing a product at its full price and then at, say, 10% off is where things get interesting. Behavioral economists call this "loss aversion", meaning people hate losing a deal more than they love getting one.
A 2017 study from The Journal of Consumer Research found that discounts can create urgency, making buyers feel like they’re getting something valuable for less. However, if discounts are used too often, they can lower the perceived value of your product.
So, while a test showing a 10% discount might increase sales volume, you need to make sure it doesn’t erode long-term brand value.
Try price anchoring, too. It’s one of the most powerful tricks in the book. Anchoring is when you show a higher price first, then the actual price, making the latter seem like a steal.
It’s like seeing a $70 price tag scratched out, with a bright $50 next to it. The brain automatically compares these prices and says, "Wow, I’m saving $20!"
A study by Dan Ariely, a renowned behavioral economist, showed that customers are far more likely to buy when they feel like they’re getting a discount—even if the higher price was never intended as the real price. You could find that conversions skyrocket just by making the “deal” more visible.
Another strategy to test is tiered pricing. People love options, and they also love feeling like they’ve “upgraded” to something better.
By offering different pricing tiers—say a $50 basic version, a $70 premium, and a $100 deluxe—you’re not just showing prices, you’re creating a sense of progression. The Goldilocks effect plays out here.
Many customers will go for the middle option because it feels like a safe, balanced choice—not too cheap, not too expensive, but just right. In fact, companies like Netflix and Adobe have used tiered pricing to subtly push users toward their most profitable plans.
Ever wondered whether to bundle your products or not? Testing bundle pricing—selling two or more products together at a discounted rate—can reveal surprising customer preferences. Amazon is famous for this, often suggesting, "Buy this with that and save."
Research shows that bundle pricing can increase the average order value (AOV) while making the customer feel like they’re getting more for less.
In a split test, selling Product A for $30 versus a bundle of Product A + Product B for $50 (instead of $60) can often lead to the bundle outselling the single product, despite the higher price. This ties into customer perceived value, where they feel like they’re getting a bargain by buying more.
And let’s not forget about psychological pricing—the magic of charm pricing, like $49.99 versus a flat $50. This isn’t just a marketing trick; there’s real psychology behind it.
Studies have shown that prices ending in .99 lead to higher sales because they create an illusion of the product being cheaper than it really is, even though it’s just a penny less.
A classic study in the Marketing Bulletin revealed that charm pricing can increase sales by as much as 24%, depending on the context. So, testing $49.99 versus $50 can show how small tweaks in pricing formats can influence buying behavior.
Now, let’s talk about shipping fees. Would you rather see a product priced at $60 with free shipping, or $50 with a $10 shipping fee added at checkout?
This is where price vs. free shipping tests come into play. Many shoppers hate surprise fees at the checkout, and a Walker Sands Future of Retail Study found that 9 out of 10 customers say free shipping is their top incentive for shopping online.
Split testing free shipping versus lower prices with added shipping fees can show whether people are more likely to convert when they see "free shipping," even if the total price is the same.
Another powerful motivator? Scarcity pricing. Offering a limited-time discount or an "early bird" deal triggers FOMO (Fear of Missing Out), which can be a massive conversion booster.
According to a Salesforce study, urgency-inducing elements like countdown timers can increase conversions by as much as 8%.
Testing a regular price against a price with a "limited-time offer" could help you leverage the urgency factor, especially if you add a countdown timer to create even more pressure.
So, whether you're testing something as simple as price variations or experimenting with advanced strategies like loyalty pricing or subscriptions, every pricing test gives you valuable insights into how your customers think and what drives them to buy.
It’s not just about selling more—it’s about selling smarter.