If you decide on the wrong pricing strategy when selling on Amazon, chances are high you will either make monetary losses or won’t sell anything. So, these are the two questions we recommend you should assess when choosing a pricing strategy:
1. Profitability – What’s the lowest price at which you can sell your products?
Take note of all the costs that are involved when selling this product, these include everything from shipping fees, customs, and taxes to Amazon commissions and costs for customer returns.
2. Maximize profits -What’s the highest price at which you can sell your products?
Consider the competition you will have on Amazon when selling this product: Do your prices seem reasonable to the price range of those products offered by competitors? If your product is priced too high, it will be unlikely that your listing makes it to the top of Amazon search results.
Take advantage of a product research tool like Algopix to get actionable, data-driven and cross-channel insights into price level and selling expenses of a given product and make an informed decision.
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