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Welcome To Episode #132 of the Amazon FBA Private Label Show Podcast!
In this episode we share simple and actionable Amazon pricing strategies that you can implement today to make more money!
Listen to this Amazon FBA Podcast!
[powerpress]Pricing Strategies Every Amazon Seller Should be Using Right Now w/Paulina Masson
Are you using the correct Amazon pricing strategies to maximize sales and profit? I have found that most sellers tend to guess how to price their products. If you are guessing and don't have a strategy then you could be leaving a lot of money on the table. Sometimes small tweaks can have dramatic effects on how shoppers view your products which could lead to increased sales and profit.
On this episode I am joined by Paulina Masson of Shopkeeper.com where she breaks down some effective Amazon pricing strategies that every seller needs to be using. Paulina is an Amazon seller herself and has lots of knowledge around the psychology of pricing and how it effects buying behaviors.EPISODE BREAKDOWN Have A Clear Plan
Before you even have your product made you should determine what type of buyer you are going to price and market your product to. You should have already evaluated the current market on Amazon to determine your potential pricing strategy. As an example if you notice that there are no "luxury" offers available on the market for a product then you could fill that void by creating a higher quality product in which you can charge higher prices.
You also should be studying the historical pricing of all the top competitors to get a feel for what the other sellers have been charging. You can use a tool like Jungle Scout to see this information.Determine Your Buyer
There are essentially 3 different main buckets of customers on Amazon. You have budget shoppers, value shoppers and luxury seekers. You should be evaluating the current marketplace to see where your competition fits in. If everyone is competing on having the lowest price then you may have opportunities to raise your prices to appeal to value or luxury shoppers.
- Budget Shoppers - they are mainly looking for the lowest priced products and aren't to concerned with quality.
- Value Shoppers - They are seeking a mix of value and quality. They won't just seek to find the cheapest option available.
- Luxury Shoppers - They want a premium product with all the "bells and whistles" and they will be willing to spend a lot to get it.
Most products you see in retail end with the price of $0.99. We know that buying something for $12.99 looks like a much better deal than charging $13.00. Even though it's only a $0.01 difference. While using a price ending is ok you may want to consider using other odd number endings such as $0.97 or $0.95. Those price endings will get the customers attention as they are quickly scanning the sales page. Try to avoid even endings such as $0.92 or $0.94. Also if you are a selling luxury item then consider using a $0.00 ending. So instead of charging $34.99 simply charge $35.00. As with anything you should split test these price endings to determine which gets the most clicks and conversions.
- Use odd price endings such as .99, .97, .95
- Avoid even price endings such as .92, .94
- Use .00 endings for luxury items
- Split test to determine what sells the best for your items
To drive clicks and more sales consider running coupons on your listings. The green banner will stand out as customers are scanning Amazon and it will catch their attention. A lot of sellers are not using coupons currently so you can really stand out. You can then experiment with using "percentage off" or "dollar off" coupons. Make sure to keep your coupons simple and easy for the customer to calculate. If you make the customer think too much they will get confused and move on to the next product.
Once you have been selling a product for a while you should look at your sales reports to determine if bundling makes sense. If you notice that customer are often buying 2 or more of that product then you can create a variation and offer the customer more quantity options. You can then give the customer a better deal per unit if they buy more however you will usually save money in FBA fees when you ship out the bundled option.Free Shipping?
While a huge amount of Amazon customers are Prime members who automatically get free shipping there still are millions of shoppers that are non-prime. For them to receive free shipping they currently need to spend $25 or more. This is important to know when selling a product in that price range. If you are priced in the $20-$24.99 range then simple increase your price to something like $25.97 so that purchase no qualifies for free shipping. You will convert more non-prime customer with this type of pricing.Business Pricing?
If you aren't enrolled into Amazon Business yet then you should do that immediately. It should be free to enroll into and by doing so you can have access to business pricing for your products. You can set different quantity discount options right inside of your seller central dashboard. By doing so you will attract lots of business buyers and start generating extra sales by default. You will then be able to see your sales generated from business customers. Don't worry if you don't have business related products. It doesn't matter.SPECIAL OFFER FOR YOU
GET A 6 MONTHS FREE TRIAL OF SHOPKEEPER!
Simply visit Shopkeeper.com and open the chat bubble and enter code "STINGRAY180" to get 6 months FREE!
- Track your sales
- Track your inventory
- Know your profit breakdown
- Use data to make business decisions
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RESOURCES MENTIONED IN THIS EPISODE:
Jungle Scout Web App – This is one of the premier Amazon product research tools out on the market now. This essential software will help you find and discovery new and hot product opportunities, track products, spy on your competitors and more. This is my go to tool right now that I use constantly.
Splitly is an AWESOME tool that now allows us to split test various things on your product listings like pricing and images to measure how they perform over time. If you want to maximize your profits and destroy the competition you need to be split testing your listings. I have been using this so for a while now and I am loving it because Splitly does all the heaving lifting for me.
Receive an exclusive PLS discount off your first month of Splitly===> Use Special PLS Link Here
For all other resources and tools that I use in my Amazon business please see the resources link.
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131 episodes available. A new episode about every 14 days averaging 33 mins duration .