It’s not easy to set a price. There are different situations that require different decisions. Sometimes it’s good to have a low price, other times it’s better to keep it high.
1 You’re going to launch a new product with Vine
2 You have to activate Amazon Ads campaigns
3 You have a lot of stock
4 You want to position yourself as premium
5 You have little stock
You’re going to launch a new product with Vine
In this case it’s good to lower the price below the final target price. When someone from the “Vine Voices” is going to rate your product, they’ll always overseas data take into account the price-quality ratio factor. Later on you can raise the price. At the beginning it’s better to leave it low.
You have to activate Amazon Ads campaigns
In this case you’re also going to need an additional cushion to be able to absorb the advertising cost of the ads. You’ll have to raise the price to make it profitable to sell with ads. The comparative cost with the competition is important, so it’s crucial that when buying you’ve done your numbers well, taking this part into account as well.
You have a lot of stock
Here again it makes sense to lower the price. We had more than 1,500 units of a resale product that we were able to buy at a very good price. We a pair of hours are selling 50 units a day because thanks to the fixed price we have the Buy Box and we are selling with a lower ROI than normal but to quickly recover the investment it makes sense.
You want to position yourself as a premium
Here you need a higher price. It will always be more difficult to convince your customer that your product is better than the others and that a higher price is justified. This requires a long-term branding and positioning strategy.
You have little stock
When you are running out of product, whether it is your material data own product or a resale product, it makes sense to avoid stockouts for as long as possible by selling the last units at a higher price. Especially in the case of Lego EOL where you will never be able to buy more units of that product at the same price, this is a strategy that makes a lot of sense.
I hope I have given you some clues about pricing strategies on Amazon. It is not easy and requires putting it into practice to establish your own rules over time.