Amazon Operated Product Pricing Rules
For Amazon operations, product pricing is an important issue that must be researched before listing. On the one hand, product pricing must be in line with the market, and on the other hand, product pricing must consider cost. Amazon operations can use category commissions, product packaging costs, logistics costs, profit margins, competitor prices, marketing expenses and other aspects as reference factors for pricing. . Next, let’s take a look at the product pricing principles of Amazon’s operations at different stages.
- New product launch stage
The new product has no evaluation, no ranking, no loyal customers, and is in a state of uncompetitiveness. At this time, in order to allow the product to quickly enter the market, Amazon can set the price lower than the bestseller of its competitors.
- Product growth stage
When the product’s sales, praise, ranking and other indicators have improved to a certain extent, Amazon operations can increase the price by 0.1 US dollars each time, and then observe the sales, clicks and conversions. If sales are stable, you can continue to maintain this small markup; if you find that sales have decreased, the seller can return to the price when the last sales were stable.
- Product maturity stage
At this stage, product sales have reached a certain number, and reviews and sales have also accumulated. At this stage, the product price is gradually weakened. The value, quality of the product and the overall positioning of the store have become the main purchasing factors in the buyer’s mind. Amazon’s operation can adjust the price to be the same as the market or a little higher than the peers, and further observe the sales and sales. Conversion rate.
Fourth, the product decline stage
Products in the recession period are at the point of product replacement, product sales decline, and peer competition is extremely fierce. If the product inventory is low, Amazon operations can reduce the price; in the case of large inventory, Amazon operations can take actions such as instant kills, full reductions, and discounts to clear the inventory to avoid long-term warehouse costs.