How to Set Your Amazon Price

Amazon Pricing

Pricing is very competitive on Amazon. Not only does this affect the chances of winning the Buy Box, it is also one of the main contributing factors to a customer’s ultimate decision as to whether they ought to purchase from you or another seller.

The logic should be: if sales are high then the prices get raised, if sales are low then the prices get lowered. Unfortunately, things are not as simple as that.

Amazon’s algorithm is very complex and cutting your margins through price reductions doesn’t always improve your position on Amazon. That is why it is paramount to understand the various differences in pricing and the various pricing strategies.

There are two types of prices on Amazon, that any seller must be familiar with:

Item price – this is the cost of a product only. This is the price customers will see minus shipping costs and any other factors that may affect the total price.

Total price or landed price is the price with everything included – this is what the customer, should they buy, pays. The following are included in the total price:

  • Shipping and handling charges;
  • Discounts, rebates, or special sales/promotions you offer/make with respect to purchases;
  • Shipping method;
  • Business practices, such as any reduction or elimination of shipping charges on an order, or of any other order-related fees and expenses;
  • Low-price guarantees.

Note: If you find your product is in the ‘Other Sellers on Amazon’ section (where you don’t have the Buy Box yourself) you ought to bear in mind Amazon lists products based on product price AND shipping price.

Amazon repricing

Many sellers choose to undercut their competition, usually by $00.01 or £00.01 in order to earn a better place in the marketplace. Undercutting the competitors is called ‘repricing’ and it can be done via:

Manual Repricing: As a seller, you can choose to reprice yourself. This involves changing the price manually through Amazon Seller Central – or via other sites should you be managing your products this way.

This will only work for sellers with a few products, as it is time consuming, but gives you a clearer understanding of both you and your competitor’s products and pricing.

Repricing tools: To help with the competitive nature of pricing, repricing tools like XsellcoRepricerExpressRepriceIt and Appeagle can be used to automatically undercut competitors on the same listing. You can set a minimum price so the system doesn’t go below this selling price otherwise you could sell the product at a loss.

Product Selection Case : Popular Amazon Product

Recently, quite a few Amazon sellers have complaint about less increased sales. They can see that Amazon is getting more and more difficult to do, so they would like to ask if there is any way to do it right. If a large promotion doesn’t grow sales, may be there is a problem on product selecting? Or are they putting enough people and fund into their operations? Peak seaspm is a large traffic peak and if no obvious sale growth that is really to consider the specific problem there.But it doesn’t matter. PREIME DAY is just the beginning. There are still a lot of activities and hot selling seasons for every seller.According to statistics of market research, electronic technology products are the absolute leading role of sales and purchases in the coming season. In corporate buyers side, office electronic products as a kind of highly standardized products, natural is suitable for online sales, many office sales of electronic products in the amazon has a super double-digit annual growth rate, and during the back-to-school sales will be further improved based on the original growth, so office electronics is sales peak.These are also expected market growth, depending on their choice of products is not suitable for this point in time. And how to choose?This is also a headache for many cross-border e-commerce sellers. There is no way out. The selection of products is the beginning of cross-border e-commerce operation.

Now let’s see what’s popular in different countries :

  1. USA: LifeStraw Life Pipette Portable Water Filter, Instant Pot Multifunctional Pressure Cooker and 23andMe Gene Test Suite;
  2. UK: Sony Sony PlayStation classic duplicate game console, Oral-B Ole B electric toothbrush and Shark shark vacuum cleaner;
  3. Japan: Happy Belly Natural Water, Anker Ank 10000 mA Mobile Power Supply and Pampers Pampers Diapers;
  4. India: Syska Intelligent 9-watt LED lamp, Boat Rockerz Bluetooth wireless headset and Godrej bathroom fragrance film;
  5. Germany and Austria: JBL Bluetooth speaker, Tefal Telford stainless steel pan and OSRAM OSRAM intelligent socket;
  6. Australia: Mario Racing 8 Luxury Edition Nintendo Switch Game, Finish Dishwasher Washing Tablets and Huggies Curious Diapers.
  7. UAE: Al Ain bottled water, Ariel Blue Wave laundry detergent and Fine Towel toilet paper;
  8. Spain: Yobola wireless Bluetooth headset, Philips Philips Multigroom 7000 shaver and DoDoDot diapers;
  9. Singapore: Meiji Meiji fresh milk, Coca-Cola Zero Coca-Cola and Kleenex toilet paper;
  10. Netherlands: Mama Bear diapers, SanDisk flash 128 GB memory card and Philips Hue smart light;
    11, Mexico: Nintendo Nintendo Switch game console, HP HP 22W limitless display and Nautica Eau De Toilette Spray;
  11. Luxembourg: JBL Charge 3 portable Bluetooth speaker, Tefal Telford stainless steel pan and iRobot Roomba 671 sweeping robot;
  12. Italy: NESCAF, Nestle Multi-fun Coffee Espresso, Dash 3-in-1 Laundry Condensate and AUKEY Portable Mobile Power Supply;
  13. France: iRobot Roomba 671 Sweeping Robot, Lunii Storytelling Toys and Oral-B Ole B Electric Toothbrush;
  14. Canada: PS4 game console (built-in Spider-Man and Horizon: Zero Dawn), LifeStraw life straw portable water filter and 23andMe gene test kit;
  15. Belgium: OSRAM OSRAM smart socket, SanDisk flash 128GB memory card and Britain Bilander water filter;

Share Your Amazon Listings on Social Media to Promote and Sell More Products

The average person spends nearly two hours per day on social media platforms. Given this popularity, sharing your Amazon listings on social media through your business’ accounts is a powerful way of getting your products in front of more buyers.

Since your followers expect to receive value from your posts, it’s best to avoid creating posts on your account that are basically ads for your listings. Instead, it’s better to share your listing in more subtle ways that are still helpful to your followers. Here are a few ideas:

  • Use a social media promo code. Merchants with a Professional Selling account on Amazon can create a promotion link to share through social media about a discount they’re offering on the listing. Unlike a traditional ad, sharing a promo code gives users value by helping them save money. For more assistance, check out this guide.
  • Share content that includes your listing link. Posting an informative, helpful blog post or video that includes a link to your Amazon listing, such as a How-to video or list post, is a great way to indirectly promote your products through social media.
  • Host a contest or giveaway. Announce through your social media accounts that any user who posts your Amazon listing in their bio will be entered for a chance to win a prize. This reward will motivate users to share your listing and spread the word about your Amazon products.

By creating social media content that is exciting and relevant, you can promote your Amazon listings through social media in a way that feels natural rather than invasive.

Run Competitor Analysis–A Little Trick to Promote Your Amazon Listings

For internal visibility on Amazon, your listings need to stay ahead of competitors’ products. In buyers’ searches, your products will fall behind competitors’ items in rankings if you aren’t monitoring how those listings are engaging shoppers.

To keep your listings high in Amazon’s search rankings, there are a few factors you should monitor in competitors’ listings:

  • Price. You want to keep your listings’ prices at or lower than competitors’ not only because shoppers are looking for the best deals—you also want to win the Buy Box if you’re sharing a listing with other sellers, and Amazon highly prioritizes price in choosing the box winner.
  • ImagesWhen Amazon shoppers are browsing through search results, they’re not only looking at price—they’re also checking out images. Visuals can be a very persuasive factor in encouraging purchases, so you want to make sure that your listing has more images with a higher quality than competing items.
  • Text. If your listing currently isn’t ranking high for your product keywords, it might be because the listing text isn’t considered relevant by Amazon’s search engine. Analyze the text of the current top-ranking listings to search for potentially relevant keywords that you can include to boost your product.

Finding ways to make your listing outshine competitors’ items on Amazon will increase your product rank in the marketplace’s search results.