How to Price your Products on Amazon in 2021?

How to Price your Products on Amazon in 2021?

No matter if you are beginning to sell on Amazon or have been doing it for years. Product pricing is the key to optimizing your listings.

To maximize sales on Amazon, every seller will want to set reasonable prices. A buyer will consider many factors before purchasing a product. These include reviews, rankings, and features. But the most important factor is the price.

We have extensive experience helping brands to set the right price for their products on Amazon and other online marketplaces. This blog post will focus on pricing a product on Amazon to maximize sales and profit.

How do you determine the price of products that you want to sell on an online marketplace such as Amazon?

Pricing, like many other things, is a combination of instinct and rules. You are an event photographer. To create beautiful photos, you need both technical knowledge as well as an artistic eye.

Pricing is the same. You will mix rules and intuition when setting prices. You’ll need to familiarize yourself with the rules first before letting your gut guide your pricing decisions. These six tips will help you get started.

1. Consider FBA Fees First

Calculating the selling price for a product is based on two factors: the costs you are willing to pay and the profit margin that you expect to make.

The margins you want will be easy to calculate. Before you can calculate a product’s final cost, you need to consider all costs. Online retail comes with a lot of costs, from manufacturing to inventory to marketing and shipping.

There are also the terrifying marketplace fees once you enter the Amazon world. These fees can vary from product to product and can range from 8% for electronics to 20% for jewelry. Make sure you do your research before you list your product.

It’s not a simple task to calculate the cost of shipping. Variable expenses such as shipping and packaging can change over time so you will need to adjust. You should also consider fixed costs like utilities, payroll, office space, and rent. This may seem simple, but it is important for every online retailer to add new products to their ecommerce platform.

FBA Calculator allows you to calculate various costs associated with Fulfillment by Amazon. SellerApp’s FBA Calculator allows you to calculate Amazon Profit Potential Seller Fees Revenue.

2. Customer feedback

Even if you adhere to all these pricing rules, you will not be able to get any sales on Amazon unless you have excellent seller and product ratings.

Think about the way you shop for products on Amazon. Are you as concerned about price if the product only has two stars? Are you willing to buy from a seller with feedback less than 90%? It is unlikely. You will need to have excellent seller feedback and competitive pricing if you want the buy box.

Customer reviews and seller feedback are the linchpin of your success in the e-commerce industry. They have the potential to make or break your Amazon business. A plenty of sellers online don’t know the finer points of it. Often, sellers using amazon seller feedback requests are experiencing an increase product reviews when compared to sellers who didn’t.

3. Repricing

Amazon retailers use repricing to keep up with their competitors. You can adjust your product’s price to match the lowest price, either manually or using automated repricing tools such as RepricerExpress.

Repricing is not sustainable over the long-term in most cases, as we have already stated. You must also adjust your prices regularly to 

  • Make sure you are matching up with other retailers and 
  • Prevent losses when other retailers raise their prices.

4. The Winning Buy Box

Clicking on the “Buy Now” button on an Amazon product page is the fastest way for a customer to go to checkout. How do you make sure they choose you amongst other sellers?

The price is only one consideration when it comes to buying a Buy Box. While you may want to get the best price, other factors are also important. It takes patience and time to get to the Buy Box. You can manipulate some parameters, such as a shorter shipping time, but you cannot force a higher seller rating immediately.

Winning the magical Amazon Buy Box is something even experienced sellers struggle with. The Amazon Buy Box alone makes up 70% sales on Amazon. Eligible sellers make sales shoot through the roof by significantly increasing their conversions. 

In this video, we will take a deep dive into some eligibility pointers sellers need to keep in mind and also come up with a checklist to win Amazon Buy Box.

5. Drive traffic to your site

The ultimate goal of your site should be to get customers to shop on your site.

You can build a relationship without Amazon. You could send a thank you email to the customer for purchasing. This would include a link to your site and possibly a promotional or incentive to buy from you.

This tactic also reduces the number FSKUs that Amazon warehouses need to store for you. If Fulfillment by Amazon is used, it will lower your costs.


Amazon is looking for a way to change your pricing or your strategy. This is only one aspect of your business. If you don’t have strict control over your inventory, all of this would be pointless.

This means that you will need to provide a quality product at a fair price and a positive customer experience. A key step in managing your distribution channels is to be more efficient. To ensure that your customers get the best products and services, you must take control of every aspect of the distribution process.

Author Bio:

Arishekar is the Head of Marketing at SellerApp and specializes in digital marketing, in addition to website keyword optimization for search engines. His areas of expertise include enhancing the organic ranking of web pages on search engines with innovative SEO strategies and online promotions.

Written by Frederick Jace

A passionate Blogger and a Full time Tech writer. SEO and Content Writer Expert since 2015.

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