In any business, choosing the right pricing strategy is a crucial decision and is particularly important to e-commerce companies, says London-based market intelligence company Infiniti Research.

“The pricing strategy that companies in the e-commerce industry choose must be one that not only gives them good return on investment, but also give a sense of “value for money,” an Infiniti expert says.

The company cites the following best e-commerce pricing strategies:

Loss leader pricing: This is the strategy often practiced by retail giants such as Amazon and Walmart. “The main idea behind this pricing strategy is to price certain products at a suggestively lower price than that of the competitors in the e-commerce industry,” says Infiniti.

Basket-based pricing: Online retailers offer free shipping if a shopper’s total basket value is over a given limit. That often results in customers buying more than they may have otherwise.

Quick-delivery pricing: Amazon relies on this, leveraging its state-of-the-art logistics network. The company builds distribution warehouses strategically so that deliveries can be made quickly. The company is opening a new distribution center in Garner, NC, for instance and has others throughout the country. It is even considering drone deliveries to customer doorsteps.