SellerApp: A Case Study on Software Product Pricing

One of the fundamental tasks of software product pricing is to determine the pricing strategy. Software product managers grapple to determine how prices are to be defined and managed over time, which is one of the “Core SPM” activities in the ISPMA framework. Pricing involves setting and communicating the prices to the customer as elucidated by the Strategic Pricing Pyramid. Set in 2023, the case describes the challenges SellerApp faced while determining a pricing model in the Indian market. SellerApp is a behavioral eCommerce analytics software that provides Amazon sellers insights derived from their data through tools and reports to help optimize and generate more sales on the marketplace. The company has been growing in the US, Europe and Indian markets and has identified four major customer segments using a product-feature fit approach. But, the founder faces different challenges in different markets and must address them to determine a pricing model in each market that would lead to increased user base and revenue. SellerApp pricing followed a value-based pricing approach and was defined based on the customer segments and the 3 levers such as – ad revenues, profitability, and a number of products being tracked.