There are many ideologies and practices guiding sellers on how to price products on Amazon, however, it is hard to argue that the biggest goals of selling are: generating as many sales as possible, receiving genuine product ratings, and achieving a high standard of customer service.
When starting to sell products on amazon, pricing your products below the average selling cost but above the price floor, is a great way to increase sales while remaining profitable. You must find your price floor (break even point) and the price cap (the highest price people are willing to pay). You want to price competitively to help your products appear on the first page on Amazon's search results. It is important to never price your product higher than the MSRP (Manufacturer suggested retail price) or the RRP (Recommended retail price) or else amazon might remove the coveted buy box.
The price that results in the best profit margins and sales figures for the seller is determined by several factors like:
- The products price in other marketplaces
- How much demand exists for the product
- How many other sellers are competing for the same customers
- Shipping, taxes, and other expenses
- How well the company attracts traffic to its listing
Manually determining all of these things isn’t easy, nor is it an effective use of your time
Successful sellers use an Amazon product research tool like Algopix to help them search hundreds of items quickly. The product insights it provides help you check demand and competition levels, prices, and allows you to determine the expenses and fees you will incur for each sale.
It’s time for you to improve your pricing strategies. Sign up for Algopix today!
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