A product will inevitably go through stages such as the launch period, the rising period, the stable period and the declining period. At each stage, the product pricing strategy should be different. Therefore, a good seller should be able to adopt different pricing strategies according to different stages of a product.
1. How to price products during the market test period
After a product is put on the shelves, the seller will inevitably conduct market testing on the product to carry out the next step of promotion. So what should the seller’s pricing strategy be during the testing period or initial launch of a new product?
Obviously, the new product has just been put on the shelves and has no scores or reviews, let alone repeat customers. Therefore, when you start pricing, the price must not be too high, otherwise you will definitely suffer a loss.
You might as well set the price lower at the beginning to attract a group of price-sensitive customers. However, sellers should not set the price so that they have no profit at all. In that case, even if they place an order, it will be meaningless. Some customers may even suspect that there is something wrong with the product you are selling when they see such a low price, and even if they buy it, they will do so with suspicion. With a critical mentality, any problem with the product will be magnified infinitely.
To sum up, during the period when the product is first put on the shelves, the product pricing can be slightly lower than the price of similar and same-level products on the market, with a range of 10% to 15%. Such a range is more suitable for new products and can also ensure that sellers have a certain profit.
For example, for a pair of gloves, after the seller calculates and refers to the pricing of sellers of the same level, he is prepared to price it at US$10.
Then in the early stages of selling this pair of gloves, the seller’s price should be US$9, so as to ensure that the product has a certain price advantage in the early stages of being put on the shelves
2. Sales volume is gradually increasing. How to price
When our products achieve certain breakthroughs in sales, reputation, ratings, and rankings, sales will begin to gradually grow. At this time, our pricing strategy will be different from when it was first launched.
At this stage, the price can be appropriately raised in batches to only about 5% lower than the market price. Remember, it is best to complete the price increase in ~5 times, and during the price increase process, always pay attention to the year-on-year changes in sales, traffic, and conversion rate. If you find that there is a sudden sharp decline, you need to restore the last price in time, and then adjust the price after it is slightly stable, and the amplitude will be smaller than the last time.
In the end, we will find that after a slight price increase, the growth trend of sales will not slow down due to the increase in price. Because there are many levels of customers on Amazon, each customer has different psychological expectations for each type of product.
Take gloves as an example. After a period of sales, sales began to rise steadily. At this time, the price can be raised three times, the first time to $9.2, the second time to $9.3, and the third time to $9.5. In this way, each price increase will be relatively small, which can minimize the loss of shopping carts caused by price increases.
3. How to price during the stable sales period
As sales increase, sales will gradually increase. At this time, sales have entered a stable period, and ratings, comments, and traffic have stabilized. , and also accumulated a certain weight. At this time, we can adjust our pricing to a level similar to or even slightly higher than the market price, so as to increase profits.
After two price increases, you will definitely find that as long as something is on sale, no one will buy it just because the price is slightly higher. Therefore, sellers don’t have to worry about not being able to sell their products if the price on Amazon is slightly higher than others.
Take gloves as an example. After the product enters the stable period, the sales volume is better and the product weight is also higher. At this time, the price can be raised twice to $9.9 and $10.99 respectively. In this way, our profit margins become higher and product sales will not be affected.
4. How to price outdated products
The life cycle of a product will always be limited, especially some products that are updated quickly and some women’s fashion products. If a product enters a period of decline, the selling price of the product will inevitably need to be adjusted to avoid unsold inventory and a backlog of inventory. At this time, if there is not a lot of inventory, you can slightly reduce the price of these goods; if there is a lot of inventory, considering the capital turnover and storage fees, the seller needs to lower the price more and sell this batch of goods with small profits but quick turnover. .
At this stage, the product has accumulated a lot of good reviews and ratings, and coupled with the price reduction, generally speaking, it is more likely to be sold.
Let’s take gloves as an example. After a period of sales, its sales volume cannot break through, competitors continue to emerge, and sales volume begins to decline. At this time, we must decisively clear the stock and use “buy two get one free” or other promotion methods. Try not to use direct discounts for promotion, and do not lower the price of the shopping cart to avoid being disappointed due to the low price of the shopping cart when participating in the Deal promotion. Suffer.