Amazon selling price
Hi everyone,
I am a relatively new seller on Amazon and have had decent sales numbers. I have noticed to win the buy box, one of the biggest factors is how cheap your item is compared to competitors (baring in mind I am not selling an own label product). Whenever I had the cheapest price, I won the buy box. I wanted to ask about the longevity of this business as sometimes I have noticed that my competitors start cutting the price, then I also have to do it to make sales. How does one combat the price war and longevity of the business as everyone can start reducing prices? Thanks.
Amazon selling price
Hi everyone,
I am a relatively new seller on Amazon and have had decent sales numbers. I have noticed to win the buy box, one of the biggest factors is how cheap your item is compared to competitors (baring in mind I am not selling an own label product). Whenever I had the cheapest price, I won the buy box. I wanted to ask about the longevity of this business as sometimes I have noticed that my competitors start cutting the price, then I also have to do it to make sales. How does one combat the price war and longevity of the business as everyone can start reducing prices? Thanks.
7 replies
Seller_ZJhFeE3tNKzfh
You can't really combat a price war. There will likely always be someone willing to sell for a penny less, especially as many sellers will be using auto repricers.
You either avoid products like this - or pick a price point YOU are happy to sell at. Yes, you won't get the buy box all the time - but you should get it some of the time, or you wait for other sellers to sell our, then you get some sales.
Seller_mS10UjVYuuGor
Amazon wants to offer customers the best prices available, it helps keep the customers on Amazon rather than them going to Google to search for items. One of the key factors is of course price, your profit margin isn't Amazon's concern.
As you are finding out if several sellers have the same product and service level the cheapest price will win the buy box. You might be the cheapest today but tomorrow another seller will join who is happy with an even smaller margin and you'll be knocked off the buy box (typically this normally happens just after you've invested in a lot of inventory!).
It's worth pointing out it was you that started the price war with your competitors when you could have tried price matching and held the buy box for some of the time.
Seller_pEXz19pDzWCEo
Amazon do sell items at less than trade on occasion and that is impossible to compete against.
Seller_nMvvMNiZTUmR1
never focus on 1 item you will just go bankrupted.....keep your price to make the profit you need and move on to new products....prices will drop and drop and come to a point where all the sellers will disappear as no profit and will increase the price....but then you might have a few good weeks selling making good profit...then comes the price drop again......enjoy the fun
Seller_SnNztJIII3ZP5
I have a simple strategy for each item. Work out a minimum return on it, excluding a percentage to cover losses and dishonesty buyers. Anything below that price is not worth your headache time Just keeping moving to another product, they all have a short shelf time because other sellers are buying from the same manufacturer or wholesaler will start to undercut you. Its a dog eat dog world.
Seller_l9DWGFvAaJQ2I
This is what's known in online selling as 'The race to the bottom'!
You can quickly turn into a busy fool, putting volume over profit.
Being prepared to say 'no thanks' in sales is an acquired art!
