Amazon Pricing Strategy, How To Increase Selling Price and Profit without Damaging Amzon Sales Rank

Did your product sales suddenly has a crazy growth and want to increase your selling price? What is the best pricing strategy without breaking your organic sales rank at Amazon?

Most Amazon sellers will launch a new product with a below the average selling price of the competitors to get more reviews and increase the sales. Some might even sell below cost and not even make profit at all.

Once your sales rank skyrocketing and organic ranking is at the top, it’s time to increase the selling price. So what is the best way to increase the selling price without damaging the sales of your product or give away the customers to your competitors?

Let AMZing Marketing Agency reveal the best pricing strategy to you based on our clients cases studies

Factors that will influence your sales

- Competition
- Demand
- Number of Product reviews
- Amazon sales rank
- Your selling price compared with your competitors

Why a sudden increase of
the retail price with than 10% will damage your listing 

Two main reasons why you will lose sales if you raise the selling by more than 10% within a day:

- Product listing will be deactivated due to Amazon Price Alert
- Your price change does NOT match in other places outside Amazon

Got Amazon Price Alert Warning?

If you suddenly increase the selling more than 10% Amazon will deactivate your listing and you will receive an price alert warning.

The price alert warning is more sensitive when you are selling an essential item during a national emergency/pandemic. Amazon considered a price increase of 10% higher than its usual price as price gouging.

We, AMZing Marketing Agency, have seen some of our clients lost 1-2 days sales $5000, because their listing got de-activated by the price alert.

So don’t make a big jump in your selling price that will trigger the Amazon potential pricing alerts.

You can read more about this in Amazon’s Fair Pricing Policy.

Customers outside Amazon Got Confused with the Price Mismatch

Amazon is an E-commerce giant. Most consumers will go to Amazon directly for shopping, but there are still 20% of online visitors coming from other online places.

Have you noticed that Amazon is advertising at these places?
- Google Search Results (Google Advertising)
- Google Shopping
- Millions of different websites

Most Sellers don’t realize that Amazon has Millions of Affiliate Marketers. The are getting commission from Amazon to promote your products. This army of affiliates drives the growth for Amazon and that was an important  key of their success.

So if your selling price is suddenly changed, some affiliate marketers might not have enough time to change the selling price of your product.

When consumers see a price mismatch they are NOT going to buy your product.  

Amazon promotes your product through multiple channels such as Amazon Associates program, sponsored search, portal advertising, email marketing campaigns.

December 20, 2021 - Reading time: 12 minutes