Posted: January 10
How do you choose a competitive product price to be a part of the big Amazon game?
It’s essential not only for driving sales but also for attracting new customers.
Here are some factors to ensure that you offer a fair and competitive price while generating a profit.
Research the competition
Look at the prices of similar ASINs sold by other Amazon sellers.
Take note of the following:
This will give you an idea of the price range that they offer in the market as well as their product descriptions, features, and customer reviews. This will help you understand what sets your product apart and how to differentiate yourself in the market.
Consider your costs
It’s crucial to calculate your costs, including:
This way, you will determine the minimum price you need to charge to cover your costs and generate a profit.
Be sure to factor in any potential price fluctuations or changes in your costs over time.
Determine your target margin
This will help you determine the price point at which you can sell your products and still achieve your desired margin.
If you set up a meager price, you may need more profit to sustain your business. On the other hand, pricing them too high may deter potential customers.
Price for value
As you know, Amazon is pushing customer satisfaction more and more. Thus, your product’s value to the customer is significant.
You can charge a higher price if your product has unique features or benefits that set it apart from the competition. For example, if your product has a longer lifespan or extra accessories or features, customers may pay a higher price to have them.
Check prices regularly
It’s essential to track your and your competitors’ prices regularly. If you notice that they are no longer competitive, adjust them accordingly to ensure that you remain competitive in the market.
So, consider the potential impact on sales when adjusting your prices.
These strategies can guide you and keep on track of your products’ price tags beneficially and attract and please your customers.
By keeping an eye on the market and adjusting your prices as needed, you can be sure that you will gain and keep good sales and profit margins.
BONUS TIP: Test increasing your prices for highly seasonal products, especially when the season peak is closer. If you think you will go out of stock soon, your customers will pay more to have their product.
AMZ Bees is an e-commerce agency that grows and manages brands on Amazon with advanced PPC strategy, listing conversion optimisation and problem solving.
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