Many sellers in the Amazon marketplace have ongoing fears about intense competition causing prices to drop too quickly, making profit impossible — no one wants to win a race to the bottom. Knowing when and how to increase prices is key to making sure that doesn't happen to you. Here's how you can reprice your Amazon listings upward.
When To Raise Prices
Obviously, you want to avoid raising your prices during times of high sales, when competition can be the most intense. Discover when your “slow” time is by looking at your order history, and use those slow sales hours to reprice upwards. When you frequently raise your prices to stay competitive, other Amazon sellers do too in response. This in turn lets you lower your prices again slightly, keeping competition healthy.
Using this strategy also helps you see how and when competitors follow your lead, and which competitors do at all. Over time as you continue to raise prices during slow times and then adjust them down during other times, be sure to keep track of your progress and how the market responds.
How To Raise Prices
Repricing software makes deciding on these kinds of changes—and on when to make them—far simpler. A good repricer lets you anticipate price wars and avoid getting sucked down in them.
For example, Informed.co's price above feature allows you to automatically price above your competitors by either a fixed dollar (or other currency) amount or a percentage. Its purpose is to ensure you stay priced just above your nearest competitor. If you're an FBA seller this is especially useful for you, because you can set higher prices than MFN sellers and still win the Buy Box.
Informed.co’s “Use Max Price” setting lets you adjust prices specifically for different circumstances. For example, you can reset to the Max Price when there is “No Competition,” when the “Competition is Below Min Price,” or when “Competition Matches Min Price.”
Those settings will reset and raise your price to a fresh starting point that other sellers on the listing may adapt. Or, for a more advanced tactic, use the “Don't Lower My Price” setting to stay constant or increase your price once you attain buy box status.
Sellers will also have the option to exclude sellers from their repricing strategy based on the number of handling days they need and specific positive feedback ratings which will allow for keeping your prices competitive with actual competition.
The Bottom Line
Knowing when and how to increase your prices is a central way to avoid the “race to the bottom” on Amazon. Choosing the right time to raise prices using sound tactics for raising them ensures that you and your business stay wildly profitable.
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