TAS 009 : How To Price Your Amazon Product To Sell After You Launch

In this episode of The Amazing Seller Podcast we're going to discuss different pricing strategies  during and after your launch. I decided to record this episode after receiving a question from one of my listeners. Here's what Ali asked:

Question:

“Hi Scott, I love the podcast!

Can you explain what you mean by “price it to sell”. Is this only for the beginning stages when you are digging for all sales possible and then after you are getting consistent organic sales, you would increase the price?

Thanks so much for doing this podcast!”

Key Points Discussed On Podcast:

  • Price Lower To Get Initial Sales
  • Slowly Increase Price
  • Continue To Monitor Sales
  • Trade Profits For Reviews and Sales
  • Lower Price Every Once in Awhile To Spike Sales

The important thing in the beginning is to get sales moving and don't worry so much about profit. You want sales…to get reviews…to help convert more visitors to sales.

If you missed the podcast where I discuss my 7 Step Launch Plan and Checklist…Click Here.

Plus, you can download my plan and checklist for the launch process.

33 Comments

  1. Patti

    Hey Scott,
    How often do you change your price?
    When do you determine if it’s the best price for your products? Thanks!!

    1. Scott Voelker

      Hey Patti, we use a program called splitly that handles all of the price testing for us.

  2. Shaun Phan

    Hi Scott, I’m still trying to understand this whole PPC thing. I’m running a manual ppc right now with a list of keywords. What does it mean when I search for my product using the some of those keywords that I set for my manual PPC, and the sponsored ads shows up next my non-sponsored one. And they are both on the same first page. Does that mean I’m wasting money on those keywords??? And should I stop using those keywords?

    1. Scott Voelker

      No it most certainly doesn’t mean you’re wasting money. In most cases you’ll see more sales from those keywords by taking up two different search spots. Some people will just click on the first result and others will click on other results. It’s ok to have two spaces, you’re doubling your chance that someone ends up on your listing. For more on ppc check out theamazingseller.com/ppc

  3. Harvey

    Scott, just started listening last week from 001, going in order. Thank you for doing this it’s an amazing podcast.
    I have a question for you about profit margins. All along until this episode, I was calculating my margin from the cost of goods only (not the amazon fees) and then using net profit from amazon minus cost of goods. This show implies that you include your amazon fees into your cost of product and only consider your actual profit after all fees. Is that right? Do you still find a product to make at least 45% AFTER amazon fees?

    1. Scott Voelker

      Hey Harvey, my goal is to net about $10 after products costs AND fees, so I calculate my margin with the fulfilment fees included in product costs.

  4. Usman

    Hi Scott.
    Your work is awesome. And thanks God you don’t sell yourself like so many out there.
    I’ve identified my first item, and I’d like your feedback. My item is simple, durable, no electricals etc. There are only seven competitors selling the same product. So, I believe, I’ll get on page 1 straight away, or soon enough with the right keywords. Item sells for average price of USD 24, to give a gross profit of $5 i.e 20%. My competitors are getting good sales and are at decent BSR. My question is: how does the item seem sound? Is the margin good enough to work out? How would PPC impact this sort of product/profit?
    I’m worried that the tight margin might hurt later on.
    At the same time there is low competition but depth in market as the good BSRs show.

    Also, can you point to the podcast on Brand Registry. I’m going thru your podcasts one by one, and still haven’t hit that one. Cheers.
    Usman

    1. Scott Voelker

      Hey Usman, if the sales numbers are there it may be worth looking at, the gross profit of $5 is TIGHT (I like to shoot for $10), but it can work as long as you wouldn’t have to spend much on PPC.

  5. Lizeth Cardona

    Hey Scott, I really love you podcast! It has me going with all that great information you give out. But I do have two questions; How does pay for click work? I’m a bit confused about how it would generate sales for me? Also I have a question about my product. I am thinking about a product that cost around $5 to make, and in Amazon most people are selling it for around $12. In your opinion would this be a good product to invest in?

    1. Scott Voelker

      Hey Lizeth, PPC works because it puts you in front of buyers who otherwise wouldn’t see your product. $7s before Amazon fees is going to leave you with a very thin margin, I like to look for products that I can sell and make at least $10 AFTER the product and Amazon costs

  6. shlomi

    hello scott
    i still didnt take an action, but i have been listening to your podcasts and learning alot. it realy encourage me to start the FBA bussiness and hope to start soon.
    thank you for sharing your knowledge.

  7. Jack Butcher

    Hey Scott, just wanted to say how awesome your podcast is! it has really helped me through those early stage blues of product sourcing and research. You have a lot of great tips and i am learning new stuff everyday so thank you for that! All the best….. I am taking action!!

  8. Alastair

    Hi Scott, I just want to say that your podcasts are a great source of information and value! You mentioned almost running out of stock, do you have any tips or pointers on judging the number of units that you should order from your supplier so as to balance being in stock but not ending up with a backlog of items? Once again thanks for all the information.

    1. Scott Voelker

      Hey Alastair, once you get up and selling it’s a lot easier to judge! I generally suggest that you grab between 500 and 1000 units in your initial order from your supplier. It’s usually enough to keep you in stock if your product TAKES OFF and just enough to not have to worry about having hundreds sitting around!

      hope that helps.

  9. Rafal

    Dear Scott,
    I have just started to learn about FBA Private Label Products literally less than a week ago. I began my research by listening to one of your competitors and, ironically, I learned about you when reading comments of one of his videos. Anyway, I must say that your podcast and all the advice in it is absolutely priceless! I plan on watching all your podcasts before I even take any steps towards going forward with my product (although I already have an idea what I want to focus on). As I learned about you only a few days ago, I am only on Episode 9, so needless to say, I have a plenty of catching up to do. All I am trying to do here is to express my gratitude to you for doing this, and what makes it even more priceless it the fact that your are doing this for free!

    Thank you so much.

    Sincerely,
    Rafal

    1. Scott Voelker

      Hey Rafal, I’m glad you’re finding it useful! One of the things you can always do to cut the learning curve down (if you desire) Is join one of our free workshops. If you head over to theamazingseller.com/workshop you’ll see the next time I’m doing one!

  10. Marilyn Madden

    Enjoy your podcasts! Q. I would like to know how to give a 20% off coupon code and link it to my Amazon listing. Any advice will be appreciated. Thanks in advance.
    Marilyn

    1. Scott Voelker

      Hey Marilyn, you would simply need to create a promotional code (inside seller central) for 20% off of your product. You could then distribute that code along with a link to your product and people would be able to redeem it!

  11. Viola

    Dear Scott, this is Steffen and Viola again.
    (I just left you a voice mail).
    I was clicking through the comments and noticed the one here. The reader is in a very competitve market and can’t stay at page 1.
    We are currently looking at a product where the first 15 products have really good BSR (30 – 1200) in a major category.
    Is that a sign to go in or for to competitve?
    No electronics, no kitchen, small, easy and so on.
    We are very keen on the product but I don’t want to get into the vicous cycle the other reader got. 😀
    See you around! Greetings, Viola
    P.S. Thank you so much for taking your time fo the community!

    1. Scott Voelker

      Hey Gang!

      The BSR itself isn’t a sign that the product would be too competitive. Take a look at the number of reviews, this will give you an indication of what it will take to make a listing that’s able to compete for buyer’s eyes with the existing ones. You may also want to look at the second or 3rd page of search results and see if there is still depth!

  12. Tmothy

    Hello Scott,

    I have been listening to many of your podcasts and really love them. I really appreciate your sharing and there are so many helpful suggestions. I am a beginner of selling on Amazon and currently selling my own labeled product on Amazon ( I’m the only seller for most of my products), however, I am struggling with how to get my products’ ranking higher. I recently try to offer free shipping to our customer. Do you think this is a good strategy to boost the sales?

    Also, I wonder if you will have a change to take a look of my listing and give me some feedbacks?

    Sincerely,
    Timothy

    1. Scott Voelker

      Hey Timothy, my biggest suggestion would be to start utilizing FBA instead of merchant fulfilling your items. While free shipping might give you a boost, there are a large number of customers that will never see your listings since you’re not prime eligible when fulfilling by merchant (currently, at least).

      You may also want to revist your bullet points and listing descriptions. Make them longer and don’t forget to make them BENEFIT focused.

      Lastly, if you’re not already, I’d highly suggest utilizing Amazon’s advertising platform to drive some additional traffic.

  13. AmazonBlast

    The Amazon Shopping app lets you shop millions of products and manage your Amazon orders from anywhere. Browse, shop by department, compare prices, … It’s a wonderful concept for newbies.

  14. Arfan

    Scott you are amazing all this info for free really wow.my question is say the product cost 5 bucks amozon fees 5 bucks so 10 bucks is the cost.so really you should be selling it for more then 20 bucks but if you sell for 25 but the rest are selling for 20 or less how will I make a profit if I sell for 17 im making a loss right

    1. Scott Voelker

      Hey Arfan,

      IF you’re making $10 on a product (or even $7 like you mentioned above) that’s a pretty healthy profit! As long as the product only costs you $10 to get into Amazon (including their fees) you should be good to go at $17, just remember that your ppc efforts will cut into that margin a little bit.

    2. Becky

      You need to see what the market place will bear. Go for the highest it can bear…i.e check the highest paying products high up in rankings on page 1 for keyword…what are they paying? be a premium product or price around the same price. I have the same all expenses at $9/10, and I price at 29.99 ( a nice retail price point)…that’s a whopping 63% PM, and it’s competitive…and I could go higher to $39.99…it’s all in testing…test it, once you are on page one for KW, test the price and be the market leader…premium products absolutely sell…!

  15. Roy

    Hey Scott, I have a question, and I apologize beforehand if you’ll cover this in a future podcast (I’m listening to them all in order, I’m up to this one at this point in time.). You talk about worrying about running out of stock for your product. My question is, what would have happened if you run out of stock like you feared? Even if for just a couple days? Thanks, love the podcast, am learning a lot! Much appreciated! –Roy–

    PS. Hopefully this gives me a notice that you’ve responded. If not, please use my email to let me know? Cheers!

    1. Scott Voelker

      Hey Roy,

      running out of stock is not the end of the world on Amazon (although it may feel like it!) If you do run out of stock, the first thing you need to do is focus as much effort as you can on getting your product back in stock ASAP. Secondly, take a little bit of time once you’re in stock (a day or two) to see how your product recovers. Depending on how competitive your category is, you may see your product jump back up right away. If it doesn’t, consider going through a “relaunch” giveaway (a smaller version of a launch giveaway) and boosting your PPC spend, until you start to see your sales and rankings climb again!

  16. avi

    Hi Scott,

    great podcast the problem i am having with understanding it the exact numbers that you have and at what price points you sold the items for.

    i follow another site that i found recently that i feel put what you spoke about here in to words and a nice form: the link is: http://alittlesliceofthepie.com/get-your-new-product-in-the-best-sellers-on-amazon-in-less-than-2-weeks-case-study/

    look at the results further down he breaks down so beautifully if you can do something like this and post it that would be amazing.

    thank you

    1. Scott Voelker

      Thanks for sharing Avi. Looks great and maybe I can create something like this in the future.

  17. Ada Lincoln

    Hi Scott,
    I listened to your podcast today on how to price my amazon product after the launch. I am so thankful that I am in this FBA Private labels group and came across your podcasts. I have been struggling to understand about keywords, it’s importance and how to do ppc and why I am doing it and what I need to do, since I joined amazon through the company we won’t mention here early last year. ASM have been good for me giving me the confidence and also developing great friendships. Your podcasts, however is the real icing on the cake. The world needs people like you, Scott. I believe what you give out will reward you tenfold and more.
    There are lot of people out there preying on vulnerable people like me who are not so tech savvy and offering these schemes that makes us feel like we really need them. I love how you keep it so simple. You also have a deep understanding of what we need to succeed. None of the BS that is going around promising support and not getting it once you get into the program. So thank you, Scott. I really love what you are doing and want you to know that I really appreciate the help you are giving me.
    Ada Lincoln

    1. Scott Voelker

      Hi Ada,

      Thanks for the comment. I really appreciate it and you make me feel like what I’m sharing is helpful. That is the main goal here 🙂

      Let me know if you ever have any questions.

      Good Luck!

  18. Samara

    Hi Scott! I feel so blessed to have found your podcasts as this is exactly what I’ve been looking for. Qs: I launched my first branded product on amazon in Jan. It’s a lower priced item $9-$10 range w/ high sales volume potential but very competitive. I knew it was competitive but thought I could squeeze my way onto the first page as other sellers had BSRs ranging from 500-6k. Well, apparently it’s going to be way harder than I thought and for this 35% profit margin, I don’t want this much of an uphill battle for my first product. My ppc wasn’t converting well when I initially started it w/ 24 reviews, so now I’m at 43 reviews and was going to turn it back on using your strategies However, after chatting with the Zonblast help desk (as I was going to go this route after I already gave away 40 units in my own promo) I found out that Joe’s recommendation is to give away like 250+ units, and do it multiple times over. SO I was not expecting this in this niche, it’s not cell phones and not supplements, it’s in the home and kitchen category. I’ve already invested $1400 and I’m not sure if I should do another giveaway and PPC to get rid of inventory and start over with a way less competitive product? I really want to succeed at this even if I pick another product. I have about 300 units at home to send in and about 100 units left in inventory at amazon. I get organic sales when I run a promo even if it’s a small one. But then the sales stop as I’m not ranking for keywords and every hour I don’t sell my BSR goes up. I don’t have enough traffic either – but when I do make sales my conversion for that day is good b/c the traffic is low. I’ll run a 5 unit promo just to get reviews, then within 48 hours I get 1-3 organic sales, and then nothing again until I do that. Any help on how to correct this situation would be awesome. Thanks!!

    1. Scott Voelker

      Hi Samara,

      Thanks for the question.

      Yes, you’re in a tough spot. This is why I don’t recommend going into a flooded niche to start. You will need to keep giving units away to spike sales over and over again. You will ned to keep paying services like zonBlast and keep buying your way to the top. I personally think it’s much easier to just pick a less competitive product with good margins and less sales. But, you can spend time on your other products vs your next BLAST!

      I know this is probably not what you wanted to hear, but I would try to find another product in your niche that is easier to rank and less competition. Then you can always promote your 1st product and still sell some.

      Sorry…but there’s no simple solution unfortunately.

      Good Luck!
      Scott

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