Grow your Amazon business with the best tools for optimizing listings, managing ads, improving your feedback and much more.

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Grow your Amazon business with the best tools for optimizing listings, managing ads, improving your feedback and much more.

242

LISTINGS

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1064

REVIEWS

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Sally

Sally

2 years ago

The price change downward is a race to the bottom. It doesn’t benefit the saller, only the platform owner (AMZ) because the product sells. But the seller doesn’t make much of a profit if they continually price downward.

Peter Franz

Peter Franz

2 years ago

I agree with you, Sally. The lower price mentality is a large problem with sellers on Amazon and brand degradation over the long run (you’re playing into Amazon’s game of just making transactions happen to collect their fees). Focus on quality products, optimized listings, and marketing while maintaining the integrity of your brand and demanding a premium price. People will pay for quality and your reviews will reflect positively.

Kym Ellis

Kym Ellis

2 years ago

Hey Sally & Peter,

Kym from the Splitly team here.

Thanks for sharing your thoughts 🙂

You are correct that any decrease in price needs to be carefully monitored to ensure it does not affect your profits, or indeed the perceived value of a product.

Having said that, we have seen lots of our users decrease their pricing in small increments (10% or less as this Andrew suggests in the article), and increase their sales velocity so much that they have actually increased profits substantially. This usually doesn’t cause too much of a race to the bottom as it’s in small increments.

That’s not to say you shouldn’t also test an increase in price too. Optimum price (for the most profit), for any given product on AMZ will vary, and it will change over time too.

Peter hit the nail on the head, it’s always a good idea to focus on the quality of your product, optimized listings and marketing! Even if you get all of this right and offer a product at a premium price, it’s still worth ensuring this price is optimized for maximum results!

Kym

Peter

Peter

2 years ago

Touché Kim,

I will add that this scenario can be utilized effectively as long as it is not at the expense of your B&M retailers or violating MAP and used more as a pro-active strategy (which can be coordinated with retailers), rather than a reactive answer to another seller dropping the price (the race to the bottom begins!). Overall, just trying to maintain brand integrity and be fair to other distribution channels.

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