Pricing Your Products

When adding a product that you've boight through an OA / RA lead to your inventory in preparation to shipping it to Amazon, make sure you price the product at around 30% higher than the current buy-box price.

This is simply to cover you in the situation of prices increasing before your products arrive, ensuring your products do not sell for a lower price and allowing you to squeeze as much profit out of your sales as possible! Products can sometimes sell before they are full prime, especially if prices increase, and you are left at the lowest price with the buy-box.

We wouldn't recommend lowering your prices down to the correct listing price untill your products have arrived at Amazon and you have full prime on the listing - you’ll be able to see this by checking the product listing, finding your store and ensuring you have next or same-day delivery next to your price). Once your products are full prime, make sure to use SAS to assess the current profit at the buy-box price as prices can of course move both up and down. If you’re happy with the profit you can make at the current buy-box price, make sure to match this price and do not undercut. You’ll then be able to share the buy-box with other sellers matched at the same price, therefore, sharing sales and making profit.

Undercutting is something extremely frowned upon on Amazon, as with eBay and other marketplaces where there are other sellers competing for sales on the same products. It’s always best to match the buy-box price, rather than undercutting other sellers and we cannot emphasise this enough.

Undercutting will simply cause a race to the bottom, with all sellers following, wiping out all profit from that specific listing.

For the reasons stated, we would also advise you not to use an automatic repricing software to undercut other sellers, and instead only to match the buy-box. Automatic repricing software only adds to the issue and shortens the time taken for everybody to race down to the bottom.

Please bear in mind, that if you are purchasing a clearance product at a one-time price, you’ll probably never be able to purchase at this price again. If you see prices reducing on a listing like this, you’ll usually be able to clear your stock at a later date when prices return to. This is because reducing prices will be from new sellers who are bricking prices to clear their stock. Once these sellers have sold out, prices will return high and nobody can physically sell these products profitably when buying from wholesalers as they do not have the same buying power as retailers like Tesco, who can reduce to cost price on clearance.

If you do want to clear your stock or reduce prices, then to maximise profits ensure you are only reducing by 1p at a time, so you can secure the buy-box under other sellers, rather than by 10p / 50p / £2.00 every time. In this situation, please also remember to be patient. If there are multiple sellers on a low-selling listing you will still get sales, this can just take a few days. If you’ve not sold anything within a week or so, you will eventually get sales, there is no need to start reducing prices right away.

Patience really can be key with listings! If sales don't come through within the first hour of a listing going live, do not worry!