5 Tips on How to Price Your Products on Amazon

Find out how you can price your products for maximum profit and sales. These five tips will help you figure out the best strategy for selling online on Amazon.

5 Tips on How to Price Your Products on Amazon

Amazon. It's the one-stop-shop for all of your online shopping needs. But what if you're a business owner who wants to sell products on Amazon? How do you price your products to make a profit and stay competitive with other sellers on Amazon? Here are five tips to get started.

5 Tips To Price Your Products On Amazon

Understand The Profit Margin

The profit margin is the estimated percent of profit you get based on the expenses. It includes Amazon referral fees, FBA fees, sold, PPC costs, and many other expenditures. A seller on Amazon must aim for a profit margin of at least 25 %. The standard price vs. list price on amazon will help the seller understand the profit margin estimation. 

When pricing your products, you need to consider the profit margin. The profit margin is the difference between the cost of goods sold (COGS) and the selling price of the product. To calculate the profit margin, you need to know your COGS.

Related: How to Find Someone's Amazon Storefront?

The COGS includes the cost of materials, labor, shipping, and other costs associated with getting the product ready for sale. Once you have your COGS, you can calculate your profit margin by subtracting it from the selling price of the product. For example, if your product has a selling price of $100 and a COGS of $60, then your profit margin would be $40.

Before you source a product, knowing its cost on pricing amazon, you should calculate the landed cost of the product, Amazon fees, inbound shipping fees, storage fees, and advertising costs. Identification of both minimum and maximum prices is essential.

Related: How to Sell on Amazon for Beginners Using FBA a Step by Step Guide

Competitive Pricing

The price value should attract customers. A great deal comes when a high-quality product is sold reasonably. Amazon's competitive pricing should be genuine. The difference must showcase between the brand on Amazon and selling generic products. When the product is new on the platform with zero reviews, keeping the price a dollar or lower than the competitor's is better. But these strategies are to be followed for a shorter period. The FBA pricing strategies will also be helpful.

Related: Six Best Selling Category and Products on Amazon

Setting A Business Price

Amazon allows the sellers to create and register for the business buyer account. This will help commercial customers to buy products based on business tax-free and reap benefits like bulk discounts. You must know about setting business prices for the products visible to only Amazon Business-registered buyers. This will further help you offer discounts and encourage bulk orders from commercial clients.

When setting a price for your product, you need to consider what the competition is charging and what your target market is willing to pay. If you're selling a niche product, you may be able to set more than the competition because there's less competition. However, if you're selling a more standard product, you'll need to be more competitive with your pricing.

It's also important to consider what your target market is willing to pay. If you're selling to budget-conscious consumers, you'll need to price your products accordingly. However, if you're selling to luxury consumers, you can charge more for your products.

Related: Best Ways to Reduce Amazon Seller Fees and Increase Profitability

Offering Discounts With Coupons

When you add the coupon to the new amazon listing products, it will be helpful during the initial sales. When the customer searches with relevant keywords, Amazon will show an attention-grabbing coupon to the targeted customer. This will increase the product listing clicks.

A/B Testing Prices

A split test is the best way to determine the product price and performance. A/B is the simple test for pricing, which is also an effective way to list your product with two different prices and then compare their performances.

Related: eBay Vs. Amazon - A Complete Comparison Guide


Amazon is a great place to sell your products, but finding the right price point can be tricky. With these five tips, you should be on your way to finding a competitive price that will make you money while still keeping Amazon shoppers happy. If you need help with fulfillment, Simpl Fulfillment can take care of everything for you to focus on what's essential - making more sales and growing your business!

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