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Amazon Pricing Strategy

Why do you need a pricing strategy?

Whether you’re a seller or vendor, getting the pricing of your products right on Amazon is essential to be successful. Working out a pricing strategy before starting on Amazon will help you to identify which products and product ranges should be added to your marketplace. However, making pricing decisions isn’t as simple as picking a low price to undercut the competition or a high price to make more money.

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Pricing isn’t only a customer buying factor, it’s an Amazon ranking factor. Get this right and you can win the ‘Buy Box’, get it wrong and you risk a loss of sales to the competition.

Put it this way, if you set your prices too high you’ll discourage customers from clicking on your listings. It also means you’re at risk of losing that Buy Box to those selling the same product. Setting a product price too low also has its problems. Afterall, a low product price may help you to make sales, but if your margins are tight you won’t be making a profit.

In short, getting a pricing strategy in place will help to evaluate the profit margins associated with each product. It’ll not only assist in finding a figure that you’re comfortable with but help to identify if that price is achievable and realistic for selling on Amazon.

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How can we help?

We can help your brand to develop strong Amazon pricing strategies that don’t sacrifice your profit margins.

From helping to identify which of your products and product ranges should be added to your marketplace all the way through to price setting, we can help.

Let's speak about your project

If you need help with Product & Pricing Strategy formation on Amazon, we can help.

Contact us today to find out how we can amplify your sales. You can also send a message, tweet us or connect with us on LinkedIn.

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