![]() By understanding the end consumer before making changes, you're able to avoid a consumer feeling let down if you increase the price, or vice-versa, let down if you decrease the price after they purchased your product. Understand Your Target MarketĪmazon is notorious for attracting price-sensitive consumers, but just about everyone is seeking a good deal nowadays. Your minimum price should be break-even (unless you have a profitable upsell) while your maximum should only be slightly above your highest competitor. Analyze Your Highest and Lowest Possible Priceīy knowing your upper and lower limits, you're able to keep your product competitive with other sellers. You'll also need to account for product returns. Maintaining a healthy profit margin should be prioritized over choosing the right price for your product. Assess Your Cost-BaseĬonsider not just how much you've paid and are yet to pay for your product (including FBA fees), but the time-cost associated with waiting for production and shipping. Initial Considerationsīefore we begin, there are 3 things to consider before you make massive changes to your product price and value offering. We'll be showcasing a dozen real-world ideas to help you stay balanced on the tightrope between holding strong product margins while increasing your sales volume month-on-month. Let's make that process of pricing your product easier. Aiming too high may see your customers seeking out your competitors while pricing too low might start the notorious race to the bottom on pricing. ![]() ![]() And the same time, our strongest competitors have an Amazon pricing strategy that's well-tuned yet dynamic, allowing them to stay competitive in the ever-changing marketplace.Ĭreating a realistic pricing strategy should be your priority in 2022 and requires fine-tuning. As Amazon sellers, we're always pushing to increases product sales.
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