Amazon pricing strategy: Guide to price your Amazon products

Amazon pricing strategy: Guide to price your Amazon products

Amazon Listing Optimization

82% of consumers regard price as an important factor in purchasing products on Amazon. At the same time, product pricing not only affects sellers’ sales but also determines sellers’ profits. Of course, product price will also affect account security. So today let’s check the guide to price your Amazon products in the right way and build the Amazon pricing strategy for your Amazon business.

Amazon product pricing

According to Amazon, sellers can list products at any price. Regardless of Amazon’s price or list price, as long as it is within the limits set by Amazon and your price meets the same requirements of the sales agreement.

If Amazon believes that the pricing practices of a product will have a negative impact on customer trust, they will cancel the Buy Box, remove the product, suspend shipping options, or suspend or terminate your sales account.

Make sure to avoid the following pricing practices.

Amazon pricing strategy

What are the factors to consider when pricing Amazon products?

It is necessary for Amazon sellers to consider these factors when pricing Amazon products.

1. The cost of the product

Firstly, you have to fully consider the various expenses and costs of the product. Obviously, the more comprehensive the consideration, the more precise the profit you can get.

Know more about Amazon Seller Fees: How Much Does It Cost To Sell On Amazon?

2. The price of competitors’ products

You have to always know your competitors.

Try to research your competitors, check if your products can have an advantage in price. If your product sales price is much higher than that of most competitive products, in this way, you have to consider if the product is a good choice to sell.

You can use the Captain BI product monitoring tool and store monitoring tool to research your competitors.

Product monitoring tools help you to spy on products for more market data, such as the buy box price, best sale rank, reviews, amount of sellers, also purchase, keyword ranking, and so on. and it can record the changes in the product in real-time.

Amazon pricing strategy-amazon product monitoring tool

And the store monitoring tool will track all dynamics of the store, and it will output the analysis report for you. It is clear for you to know the new products they launched, the review rating of their products, and feedback status.

3. Shipping fees

Finally, for FBM sellers, you have to pay attention to the shipping fees. Also, Amazon will check the shipping fees, to make sure the shipping fee is not too high or unreasonable.

How to price Amazon products?

It is certainly not static for the product pricing. As we all know, products have their own life cycle. Product sales in different cycles are different, and sellers had better price products according to the product life cycle.

Amazon pricing strategy-product life cycle

In general, you can price products in the following ways.

1. The launch period

It is the most unpopular time for the product. The product that has just been launched has no good ranking, no sales, and no reviews.

In this status, if you want to attract customers, the price is a very important attraction. For this reason, for new products that just launched, many sellers will use price concessions to attract consumers to shop.

2. The growth period

Products at this time are in the stage of sales growth, and at the same time, the products are beginning to be paid attention to by consumers. Besides, there will are more reviews for the product, the sales of the products are often in the rising stage.

In this stage, the price of some products can be increased. However, it is not suitable for being too high.

3. The mature period

Products in this period have good sales, good rankings, and good product reviews. With the help of these factors, the products of sellers can attract consumers to buy. In fact, the price of the product at this time will not become the most important factor that affects the purchase of consumers, so the Amazon product pricing at this time can be slightly higher.

4. The recession period

When an upgraded version of the product appears in the market and a product with more complete functions appears, the product will be at a disadvantage and sales will begin to decline.

Obviously, sellers at this time need to quickly clean up the inventory to avoid encountering product backlogs. So we need to reduce prices for our products at this time to attract consumers to buy it.


When formulating the pricing strategy and determining the best price and pricing technique for your business, it’s important to clearly outline your business goals, understand your product costs and any other expenses, and establish overall pricing. This can bring incremental revenue and profit strategies to your business.

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