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      3 Amazon Pricing Strategies that Always Work

      3 Amazon Pricing Strategies that Always Work
      Posted by James Hyatt on December 28, 2021

      Pricing is a critical element in selling on Amazon. It’s one of the main factors customers consider when choosing which seller to buy from. It also greatly affects the chances of winning the Buy Box.

      First, you must understand the difference between item price and total price. Item price is the cost of a product only – this does not include shipping costs or any other factors that may affect the total price.

      Total price, or landed price, is what the customer pays at the end of the purchasing process. The total price includes shipping and handling charges, discounts, rebates or special sales/promotions, low-price guarantees, and any other order-related fees or expenses.

      1. Repricing Ideal for undercutting the competition. Commonly used by retailers to match up to competitors. However, this is not a sustainable strategy in most cases.
      2. Buy Box Getting to the Buy Box takes time and patience. Price is not the only consideration; it requires a good sales rating, too.
      3. Value-based pricing Recommended for private labels. The product’s price is determined by what customers might expect to pay. Conduct thorough market research prior to launching any product to fully understand what the ideal price could be.

      Need help with Amazon pricing strategies? Book a call with us today.

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      Topics: Pricing

      About the Author

      James Hyatt

      James Hyatt is the founder and CEO of Rank N Bank, an Amazon Advertising Agency that prides itself on quick, clear communication, transparent pricing, and industry-leading expertise. He graduated with a degree in Business Management at San Diego State University. A self-made entrepreneur, he has built Rank N Bank with no funding or debt, with the sole purpose to help clients grow their businesses profitably.

      Outside the business sphere, James is passionate about racing sports cars at the well-known Willow Springs Raceway, surfing the famous wave breaks on the East and West coast, and challenging himself out on the mountain trails around the U.S.