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Amazon Pricing Strategy and Testing
Whether you have 1 product or 1000 products on Amazon, implementing an effective inventory and fulfillment strategy is essential.
Many things must be considered, such as type of products, the weight and size of products, the current fulfillment methods used, product variations and bundles, and more.
We offer the following strategy and testing services for our Amazon clients:
Listing a new product? There’s a lot to consider when choosing the initial price. We’ll look over the factors and recommend an ideal starting point, including conducting an analysis of your competition.
If you lower the price and reduce profit margins, sales volume increases.
If you raise the price and increase profit margins, sales volume decreases.
How do you calculate the best point where you will make the most profit based off of profit margins and sales volume?
The answer is: the point of diminishing returns (PDR).
FountainheadME will scientifically vary pricing based on your COGS over the course of several weeks to determine the optimal selling price needed to maximize the greatest net return in dollars.
We call this PDR Testing, and we haven’t come across a single case where the PDR test results were anything less than astonishing. In all cases, we have either found that lowering pricing resulted in a higher net profit or that a product was under-priced to begin with, and raising the price had a negligible effect on volume (up to a point, of course).
Buy box issues due to pricing? Need to make pricing adjustments for promos? No sweat - we’re here to help.
Many Sellers use repricing tools to keep their buy box win percentage up, however this usually results in a race to the bottom and eroded profits.
FountainheadME can help buy box issues in several ways besides repricing. Each case is unique and complex. Give us a call and we’re happy to review the options available in your situation, including the removal of unauthorized resellers.
Promotions and deals are a big part of Amazon, but do you know what kind of pricing and discounts are required for lightning deals? When would using a coupon be effective? We’ll help you to navigate these options and use them strategically.
When leveraged properly, promos have the ability to completely change your volume and profit landscape, particularly for seasonal products and during peak shopping times. FountainheadME has several proven Amazon promotional strategies with a documented track record of success.
To win at eCommerce, Amazon or traditional, a seller needs both intuitive understanding of buyer behavior and application of complex mathematics. People skills can only get you so far. Numbers express exactly the how, what, when, and where of buyer behavior. It’s our job to interpret these numbers using calculus and experience to answer who the customers are and why they buy. Once we define and understand the audience, we can target and sell to them with scope and precision.
We aren’t freelancers. We’re a team of the best eCommerce minds in the industry. Our expert full-service Amazon account managers, online marketers, UX/UI specialists, and full-stack developers will serve your needs with cohesive, data-driven strategy and unparalleled technique.