Why is sharper pricing important for your online business?

by Arshiya Dey & Ramesh Kumar Burman on 28/09/2017
In this article, we will help answer three common questions about pricing and how optimising your product prices can increase your sales.

Why is pricing an important factor for customers while making the buying decision?

Apart from the image and product description, the price of a product plays the most important role in the buying decision of a customer. Thousands of sellers are selling crores of similar products across the Amazon marketplace. For the buyer to pick your product, you must offer your product at a great price that should make your customer feel like they made a valuable purchase.

For example, if two sellers are selling the same type of furniture; the customer will buy from the seller offering the lowest price with the shortest delivery time.

What should you do as seller to enable a quick buying decision?

You should provide an offer that has an attractive price and compelling fulfilment options. Having best prices along with other performance factors increases your chances of winning the Buy Box.

For example, if two sellers are offering the same product then the seller with better pricing and fulfillment option gets to win the Buybox, Which can help the seller get higher sale.

What tools does Amazon provide to enable sellers and help them competitively price their products?

Amazon has many pricing tools for your help like – Pricing Dashboard, Automate Pricing, Pricing recommendations email, and Business Report. You can view your Buybox winning percentage and price competitiveness on Pricing Dashboard. Pricing Dashboard also give you the actionable list of recommendation for you to take action. You should use the Automate Pricing tool to make your listings price competitive, which increases your chances of winning the Buybox and earning a loyal customer.

In our previous posts, we have mentioned about how the Automate Pricing tool can help you update your product prices across multiple products at once. The tool essentially lets you set automated pricing rules to match or beat competitive offerings, increasing your chances of winning a repeat customer and the highly desired Amazon feature called the Buy Box.

The rules to set up Automate Pricing for your selling account is simple to use and understand. It can also reduce your day-to-day efforts of manually pricing your products based on the market trends.

To be able to use the Automate Pricing tool, you must first register yourself on Amazon and then set up your online store by pricing your products competitively.

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