How to calculate Amazon product pricing? What are the methods?

If you want to upload Amazon products to your store, in addition to setting up pictures and completing basic additions, the most important thing is to price the products. Of course, it is easy for non-experts to suffer losses in product pricing. The main problem lies in the fact that everyone does not understand the platform and competitors.

1. Amazon Product Pricing

When setting prices, factors such as production costs, profits, and quality are often considered. The formula for setting prices can be:

Product price = cost + flat commission + expected profit + other

fba selling price = cost + average commission + fba first leg + fba fee + expected profit + other

*The sales commission for most of Asia's products is 15%.

*Other aspects include promotion, tax, etc.

Before setting the price, you should first determine whether the product is suitable for sales volume or high profit. Different strategies will be different depending on the route you take. However, you must also remember not to cause dissatisfaction.

2. What are the methods?

For the same product, the strategies are different when there are competitors and when there are no competitors. At the same time, the ideas of products are also different at different stages.

1. In the new product stage, there are no good reviews, no ratings, no loyal fans, and no competitiveness. If the price is set the same as the mature price, do you think anyone will buy it?

Of course not. Therefore, in order to cultivate a good experience and quickly enter the market, it is advisable to set a low price for a new product. But it should not be set too low, otherwise it will not only fail to make a profit, but also underestimate the value and even suspect that it is selling fakes.

2. In the growth stage, when the quantity and score have a foundation, the quantity is on the rise, but the number of loyal fans is still small. If it is in the growth stage, the price can be slightly raised or controlled in a slightly lower range.

3. Mature segment. When it is very stable, the ranking and scoring indicators are very good, and a lot of foundation has been accumulated.

So, at this level, the price comparison has weakened, and it represents more the image and store location. So, you can safely adjust the price higher.

4. In the decline stage, new and more perfect products will replace the old ones, loyalty will decline, demand will weaken, and sales will be much lower than before, so there is no need to continue to push. If there is still inventory, you can clear it out, which means it is the end stage.

What follows is the need for everyone to develop new products, and then the pricing idea for new products is basically based on this. As long as everyone learns more, they will gradually understand the pricing stage.

Amazon product pricing is usually related to product costs, commissions, expected profits, shipping costs and other expenses. You also need to take these aspects into account when considering pricing. Of course, pricing also depends on the product cycle. In different cycles, there will actually be differences in pricing strategies.