82% of consumers cite price as an important factor in purchasing a product on Amazon. Price is a key factor influencing product selection and consumer engagement. According to Amazon, you can list a product at any price, regardless of Amazon's price or list price, as long as it's within limits set by Amazon, and your price meets the equivalent requirements of the sales agreement.
So when we price products, what aspects need to be considered, and from which aspects should we price?
1. Cost
This is one of the first fees for sellers to consider. The production cost of a product includes raw materials, research and development, manufacturing, transportation, and factory profits. If sellers make improvements or micro-innovations on products in order to ensure quality, the cost will also increase. For non-factory sellers, the cost is the daily purchase price.
2. Platform monthly rent and commission
If you sell products on the Amazon platform in the name of professional sellers, in addition to paying monthly rent, Amazon will charge different percentages of commissions according to different categories of products sold by sellers. This part of the cost, the seller is often included in the product pricing, and ultimately paid by the consumer.
3. Market supply and demand
Market demand has a significant impact on product prices. When the market pursues a new product and the supply of the new product is in short supply, then its price will increase accordingly. However, when a large number of products are distributed online and offline by merchants, buyers' choices are diversified, and sellers' profits are diluted, which will also affect the price.
4. Shipping costs
From the factory to online sales, the transportation cost is not small, which will also affect the price of the product. If the seller chooses Amazon FBA for delivery, it will also incur FBA first-way transportation fees and FBA storage fees.
5. Brand positioning
The product brand positioning is different, and the price positioning is also different. Brands that take the low-end market route will have low prices; brands that take the mid-market route will have moderate prices; brands that take the high-end market route will have high prices.
6. Promotional festivals
Amazon has a membership day in mid-July, and there are "Black Friday" and Christmas sales in the second half of the year. Whenever these holidays roll around, Amazon makes massive price adjustments to boost sales.
7. Competitor prices
When setting your product price, don't forget to check your competitor's product price, as well as its historical selling price. It is recommended that the price not be too different from the competition. (Amazon Advertising Tools free registration link:)
