Whether you’re starting to sell on Amazon, or you’ve been selling for years now, one of the most important steps to success is the pricing of the product. Even before internet retailing became popular, customers chose products based on their prices.So how do you set that price?
Pricing is, like many things, a balance of instinct and rules. You need to keep in mind the below-mentioned variables, before pricing any product that you wish to sell on Amazon.
You want to be profitable (Find your lowest price)
You want to maximize profits (Find your highest price possible)
First, consider all of your costs, and predict what your prices would be for you to be profitable with those costs included. Second, your price must be competitive enough to appear on the first page of the Amazon search results when a relevant keyword corresponding to your product is searched.How to boost profit maximization?
In order to boost profit maximization, you can better your sourcing. When you keep a check on sourcing your products the costs can change depending on availability of raw materials, scale of production, and availability of the raw material.How can Amazon help?
With Amazon’s Automate Pricing tool
, you can quickly update prices across a large portfolio of products, without spending a lot of time. So, it is very important of your new products to always maintain a competitive price. The benefits of using Amazon’s automate pricing are as follows:
You can create a pricing rule, set the rule parameters, and then select the SKUs to which the rule applies.
Automated pricing is applied only to the SKUs you designate, not to your entire catalogue.
You can start and stop automated pricing rules at any time, as well as change your rules or the SKUs to which your rules apply.
You can control the prices by defining rule parameters, setting minimum and maximum price boundaries and selecting the SKUs on which to automate pricing.
If these features excite you, then please start using the Automate Pricing Tool now. If you are not yet registered on Amazon, please sign up today