Look at this product listing.
On the landing page it says, "Sold by Pillypaloo and Fulfilled by Amazon." Customers can buy the item directly from this page - it is called the page with the "buy box" - because you can buy it from here. Pillypaloo will get those sales. BUT......
What many Amazon sellers don't realize is that the seller featured on this page ROTATES. It isn't always going to be "Pillypaloo." It will rotate between however many FBA sellers have this item and are within 9 cents of each other. Even if it is 10 sellers all within 9 cents of each other. Any FBA seller will get a shot at being on the "buy box page" if they are within 9 cents of the lowest price.
Click here to look at how many FBA sellers have this product, and how they keep undercutting each other by a few cents. Undercutting by pennies is a silly marketing strategy and not necessary to get sales on Amazon. This thinking causes a race to the bottom and eventually, nobody wins.
If you are selling on Amazon, please stop playing "the penny game." You don't have to! I am selling a product right now with an $18 profit, and thankfully, I am assuming, my competitors know about the buy box. We are all holding firm at the same price. I am getting sales every few hours and so are my competitors. We all win.
Amazon is NOT eBay. You don't have to be the lowest price. This is especially true if Amazon does not have the product. Slow and steady wins the race - don't be in such a hurry to sell something!
If you don't understand, please ask questions on my Facebook group. This is really great information to help you make more money - to help us ALL make more money.
More Amazon Resources:
Understanding the Amazon Customer
Amazon FBA Recipe for Success
Make Money Selling Toys on Amazon
Great suggestion. It's the easy inclination to "go low" which hurts you as well as others. As you say, be patient.
ReplyDeleteExcellent suggestion. The natural inclination is to be impatient and go low. Be patient as you suggest. Watch your margins.
ReplyDelete