What factors affect Amazon's product pricing? Logistics factors have little impact

2022-11-21
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Author:Blue Ocean Yiguan
Source: egainnews

What factors affect the pricing of cross-border information Amazon products? Logistics factors have little impact

Amazon's product pricing is affected by many factors. For Amazon sellers, the product pricing cannot be too high or too low. If the price is set reasonably, the conversion rate will be good. Of course, orders will increase more. Follow the editor today to learn moreAmazon Product PricingStrategy to help small white sellers get on the road quickly.

The quality of the product, the popularity of the product, the market demand, competitors, logistics factors, etc. may affect the price of the product.

We often encounter a product with the number 9 in its pricing. The visual impact makes people feel that the product is very cheap. Compared with 10 yuan, 9.9 yuan is cheap. In fact, it is only a dime cheaper. It is also good to use psychological tactics to achieve the purpose of sales. This is the secret of product pricing.

What factors affect Amazon's product pricing

1、Market demand

To really know the demand of the product, we need to investigate the market demand and see whether the user's demand for this product is large. If the product demand is large, the product may be priced higher, and some people will buy it.

2、product quality

The quality of the product determines the price of Amazon's products. The product quality is particularly good, and the seller has its own brand. Maybe the price is set higher and the sales volume will not be bad. For the product quality is particularly poor, Lanhaiyiguan suggests that the seller should not choose to avoid causing many troubles to the store.

3、competitor

When pricing Amazon's products, it should also refer to the prices of competitors. If the seller's pricing is much higher than that of its peers, the product may also go unnoticed. Therefore, correct product pricing is important.

4、Logistics factors

Amazon Logistics has its own FBA and the seller's own FBM. Choosing different logistics methods will also affect the pricing of products. FBA costs a little more, but the delivery speed is fast; FBM sellers have a great right to choose freely, but the timeliness cannot be guaranteed in time. The sellers can choose the appropriate logistics according to the actual situation, and then consider the product pricing.

5、Product cost

Any product has a cost. If the cost is too high, the price of the product will also be affected. The seller should also take it into account.

6、profit

When Amazon sellers choose a product, it is OK to basically control the profit of the product between 30% and 40%. If it is too low, they should not consider the cost.

7、brand positioning

For sellers, whether a product wants to take the high-end route or the low-end route determines the price of the product.

8、commission

For Amazon platform, there is a corresponding commission. Every seller sells a product, there is a corresponding commission.

9、Other factors

The price of the product is not fixed, but will change with the market, activities, seckill, etc., affected by other factors.

Amazon Product Pricing Formula

In addition to product costs, commissions, profits, and logistics expenses,FBA selling price=(product cost+FBA first journey+FBA fee) * (1+profit)/(1 - commission)

A product can be priced at different stages, such as the initial stage, the mature stage, and the recession stage. The price of Amazon products may be different at different stages, such as the initial stage, the low price, the mature stage, the sales volume comparison, and the price may rise. In the recession stage, there may be only discounts and promotions.

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