If you are an Amazon seller then the most important goal of you is to maximize sales and profit rate. To be a successful seller, it is essential to become an expert in many skills. One of it is to determine at what price you should sell your product on Amazon. If your price is high then there is will be low sales but if your price is low then you will not get enough profit. The key is to find the middle solution where you can have good profit along with proper sales.
In this article, we will look at the strategies which can be used to maximize your profits.
Set a minimum and a maximum price:
If you use automated repricing software then the first thing you need to do is to set minimum and maximum prices to avoid any risk. By setting both prices, the automated software will adjust your price according to your competitor price. Additionally, the software will push the price up to maximum when your competitors are out of stock which will result in maximizing profits.
Customize your competition:
Many sellers make mistakes by thinking that people will buy from them if they lower their price than other sellers. Lowering your prices frequently, the customer will think your products with cheap quality instead of affordable. Sometimes customer considers other aspects such as product quality, shipping time, packaging, customer service based on reviews and feedback. In this scenario, customers prefer to buy a product at a higher price if it has good reviews and feedback compared to other sellers at the lowest price which has fewer reviews.
When repricing, consider the condition of the item. If you are selling used goods then its price should be less than that of new-like items. Therefore it is best to compete with the items whose condition is the same as your product.
Work Your Intelligence and Experience:
Using Repricing software is great for the business as it saves time and is easy to use and navigate. But it will be beneficial to use your business experience and intelligence to implement pricing strategies. It includes the following things:
- Anticipating competitors’ trends.
- Using past information to make future decisions.
- Realizing the difference between an item that’s a lost cause (and in need of a quick sale) and one that just needs a little boost.
- Deciding when to use repricing and when to bundle, upsell or do something else to move an item.
Identify the products which need to reprice first:
Before putting your whole inventory on sale, take a step back and assess which products need to be repricing first.
For instance, the products which are sitting idle in fba warehouse and has very low sales needs to be repriced first. As these products may get outdated soon plus amazon will charge twice-yearly long-term storage fee by having items stay there for more than a year (365 days).
Another strategy is to decrease the price of those products whose cost is more as it will grab the attention of the shoppers who had their eye on the products and they will get excited as the item becomes affordable.
Applying Supply and Demand Principles:
Repricing is pretty easy when it comes to supply and demand. If the number of items is more than buyers, then the customers can be picky about prices and might hold on until the price lowers.
There are many repricing software available online which helps sellers to compare their product prices with the competitors and adjust them automatically.
Having your products priced as same as the competitor is one of the best ways to increase profits. Some strategies will succeed while others you might have to do bit more experimenting. If you have large inventory then repricing them will take more time, so it’s better to use a repricing solution.