How to Price Your Amazon Products
Whether you are a new Amazon seller or an established Amazon seller, the most crucial step in running your business is product pricing. Pricing plays a major role in optimizing your listings. Every seller wants to set competitive prices to get maximum sales on Amazon. There are a lot of factors that a buyer considers before buying a product, such as reviews, ranking, quality, features, but the product’s price remains on top!
You must have an efficient and dynamic strategy for pricing your Amazon products to help your brand grow. Product pricing is crucial to get successful on Amazon, and that’s why Alpha Repricer- the fastest Amazon repricing software is here with a few tips to help you know how to price your Amazon products to maximize sales and boost profit.
How to set your product prices on Amazon?
Pricing is all about setting particular rules after evaluating the marketplace and your competitors. You set prices that are affordable but not too low. If you set your prices too low, you will get into price wars with your competitors. However, if you price too high, the customers will choose your competitors over you due to affordability. You need to set a balance between the value of your product, the competitor’s price, and your profit margin.
So, how do you decide on the perfect price for your product? Well, there is no one rule or strategy that will guarantee an immediate win. Everything comes down to the value you are providing your customers, including the quality, cost, and shipping of your item. There are a number of factors you will need to consider to set the best price for your product!
1. Determine expense and your projected profit margin first!
It is imperative to consider all expenses, projected income, and potential profit margin. First, calculate all the money you invested in the product, including its manufacturing, marketing, and shipping. Then include the fees Amazon is charging you for selling the product on its platform. The fees are different for every product, so make sure you research which fees will be relevant to your business and add it all up. Don’t forget other expenses such as office rent, payroll, travel costs, and other utilities. It may sound like a one-time effort but it isn’t. You must calculate all the costs and then double-check to be sure that you are getting a fair profit out of your sales. Calculating your costs and setting your product price is a smart move every seller must make before introducing new items to the online platform.
2. Know what your brand is worth!
The rules you set for pricing will depend on your brand value. If you are selling a low-cost brand, then your prices can be changeable and must be set according to other competitors. Plus, ending your product prices at .99 makes your price looks quite affordable to the buyers. However, make sure you don’t drop your prices too low, as buyers might start judging the quality of your product. Make sure you set your prices a little higher than the cheapest selling brand.
If you are selling a premium brand, you must consider staying consistent with your prices and keeping them higher than usual brands. If low-cost products follow the rule of .99 cents, you should round off your prices and set them at a whole number. Make sure you convey the message of selling high-quality products.
Pricing always requires sellers to have an understanding of customer’s perception of brand value and reliability. You must know what buyers think of your brand and whether they are willing to pay the price you set. It takes trial and error to set prices based on your brand, but once customers find your pricing fair, it gets a lot easier.
3. Consider automated repricing
Many Amazon sellers make the mistake of setting initial prices and leaving them stagnant in a constantly shifting marketplace. It is nice to stay consistent but realistically you have to keep up with the changes in the market.
Having flexible prices is essential to stay competitive on Amazon. Unless you are selling high-valued brand products, you must keep your prices flexible and adjust them constantly to stay ahead of your competitors. It can be a tough job, and that’s why there are amazing automated repricing tools in the industry to get the job done for you!
Alpha Repricer is one of them. We are the fastest Amazon repricing software in the market, with a response time of under 2 minutes. Our repricing tool is set to change prices as soon as your competitor changes their product price. Our Buy Box hunter wins the Buy Box for you and attains it at the highest price possible. Want to know more? Click here!
Ensure that your product prices are comparatively better than other sellers selling similar products. Get a repricer now! Try our 14-day free trial and see the results!
4. The $10 rule can help you get a decent profit!
When you use FBA on Amazon, having your product prices at $10 is always better. If your product prices are under $10 or more, then you will need to follow different rules.
If you set your product price under $10, then either you lose on profit, or you struggle to keep your prices affordable. Why? Because of the minimum and fixed fulfillment fees of Amazon. You will have a lesser profit margin due to this fixed cost. For instance, if you are selling your product at $4.99, you will have to set it to $11.99 to make a profit, and then buyers will look elsewhere for a more affordable price.
However, if you price above $10, you can earn profit and pay the fulfillment fees. If you are selling a low-priced product, that’s fine! Many strategies, such as bundle packs, can help you stay profitable and enter the $10+ category.
5. Always work on getting positive customer feedback!
Even when you follow all the pricing rules, it is important to sell quality products to increase ranking on Amazon. consider all the aspects of your listings from a buyer’s point of view. What issues would a buyer notice before getting your product. They won’t buy a product if it has only two stars or a lot of negative feedback from previous customers. Work hard on getting positive reviews, keeping your prices competitive, and win the Buy Box!
Alpha Repricer can help you win the Buy Box this year! Click here to know more.
Pricing is only an initial step towards success. Maintaining your seller ranking and good reviews is equally important. Make sure you deliver a quality product at affordable prices for positive customer feedback. Sign up with Alpha Repricer to make the job easier for you! Sign up for our 14-day free trial and let the fastest Amazon repricing software keep your prices competitive. Contact us for more information!