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.

Join the discussion

33 comments
  • 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?

    • 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

  • 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?

  • 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

    • 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.

  • 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?

    • 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

  • 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.

  • 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!!

  • 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.

    • 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.

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