PRICE is the core of your business.
Price management is the process of creating and updating prices within a company. This includes setting a seller price where it should be taken into account the price at which the goods are acquired, the manufacturing cost, the marketplace, competition, market condition, brand, and quality of product. Price management also includes updating prices when necessary, managing pricing segments, measuring key performance indicators (KPIs) and more.
AMAZON PRICING DEFINITIONS
The item price is the amount payable by a customer, excluding shipping and handling, as it appears when you list an item.
The total price is the amount payable by a customer as well as all terms of offer/sale. This includes all of the following:
- Shipping and handling charges
- Discounts, rebates, or special sales/promotions you offer/make with respect to purchases
- Shipping method
- Business practices, such as any reduction or elimination of shipping charges on an order, or of any other order-related fees and expenses
- Low-price guarantees
Very important part of your selling price is knowing your fees. For all products, Amazon deducts the applicable referral fee percentage calculated on the total sales price, excluding any taxes calculated through Amazon tax calculation services. The referral fee varies by category, as listed below.
AMAZON REPRICING
Winning the price competition is based around keeping prices as low as possible for the buyer. This means the prices of products can change numerous times, even during a single day. This can be done in two ways:
Manual Repricing
You can choose to reprice yourself which means you manually log in to Seller Central and change your price. Have in mind that this is time consuming and is not very efficient because other sellers’ prices will immediately be repriced after your price has changed.
Pros:
- You depend on yourself and have a complete control over your price;
- You have a clearer understanding of your own and your competitor’s products and pricing.
Cons:
- This will only work if you have few products;
- Highly time consuming;
- Your personal judgement in particular situation may not be correct.
Repricing Tools
You can choose to use reprising tools to automatically undercut competitors on the same listing. Crucial is that you set a minimum price so the system does not go below your profitable level.
Pros:
- You save on time;
- Guarantees more time earned Buy Box by price;
- You put bits that minimize margins and maximize profits;
- Suitable for more products;
Cons:
- May cost a lot;
- Less control over your price;
- Gives you less information on your own and your competitor’s products and pricing.
WHAT WE CAN DO FOR YOU?
Analysis of Product Price
We can research on similar product prices and your competitors prices and discuss with you the results and your product opportunities.
Total Price Calculation
We can help you calculate all parts of your total price ensuring that you will not miss any key points and thus result in less profit.
Price management
We can take control over your price management choosing the correct price strategy and adjusting your price parameters considering your business strategies and desired goals.
Reimbursement requests
If you take part in the FBA program, you will definitely have order and item reimbursement issues with Amazon. We can manage this process instead of you providing you with on-time report.