Mastering Price Testing in E-commerce with the ICE Framework

Discover the impact of pricing strategies in e-commerce through a detailed analysis of two approaches: 'High Value, High Gain' and 'Volume Over Value'. Utilizing the ICE framework, this blog post examines the implications of price adjustments on revenue, profit, and ROI, providing insights for businesses to make data-driven decisions.

November 21, 2023


Effective pricing strategies in e-commerce are pivotal in shaping sales and customer behavior. This blog explores two distinct pricing strategies for a product initially priced at $45, incorporating the ICE (Impact, Confidence, Ease) framework to provide a comprehensive understanding of their implications.

Part 1: Thought Experiment on Price Testing

Here, we conduct a thought experiment on two pricing scenarios: a price increase and a price decrease. We'll evaluate the outcomes in terms of conversion rates, average order values (AOV), revenue, and profit growth. This section aims to provide real-world insights into how varying pricing strategies can impact an e-commerce business.

Scenario 1: Price Increase Strategy

Test Name:



Expected Outcome with Real Numbers:

Cost and Profit Analysis:

Scenario 2: Price Decrease Strategy

Test Name:



Expected Outcome with Real Numbers:

Cost and Profit Analysis:

Part 2: ICE Framework Analysis and ROI Calculation

This section explains the ICE Framework and its application in assessing the ROI of price testing strategies. We will break down each component—Impact, Confidence, and Ease—and illustrate how they contribute to determining the effectiveness and potential ROI of the price tests discussed earlier.




Scoring and ROI:

The ICE method prompts us to focus on the most crucial questions:

This framework helps in making more intentional decisions, steering clear of brainstorming traps, and achieving incremental improvements aligned with business goals.

By applying ICE framework, we can generate following result:

Analyzing Scenario 1:
Analyzing Scenario 2:

With ICE framework, it seems intuitive that we should start a price test. Now let's add the consideration with ROI.

ROI Calculation (assuming a $3,000 cost for running the tests):

Adding the comparison of ROI, it's straightforward that which decision should we made. This entire process is easy to incorporate into the day to day operation and will bring massive ROI.


Our exploration through the ICE framework reveals the intricate dynamics of pricing strategies in e-commerce. The choice of strategy should align with the business's broader goals, balancing pricing, cost, and demand. Whether aiming for higher transaction value or volume, the key lies in understanding and responding to market and customer behaviors. If you are searching for a easy to use price testing app on Shopify, checkout ABConvert today.