So you built a product that you want to sell through Amazon.
How do you price your product?
Amazon is the world’s largest online retailer. Millions of products are sold through amazon. a lot of people make their living selling through Amazon. One of the biggest mistake people do in Amazon is that they price their product the wrong way. Sometimes they sell overpriced products, sometimes they sell the underpriced product. Both situations are toxic for the business.
We recently worked with a company that helps small businesses sell the products efficiently through amazon and other marketplaces. One of the key things they are doing is helping people with pricing their product the right way.
What I learned from them is that price is a relative term and a lot of people does not understand it. Pricing is a function of the positioning of your product in the market.
We need to collect the data using a technique called web scraping to understand how to position the product. You can get the data in a CSV file which can be used for analysis.
1) What is the average price of a comparable product?
Understanding the pricing strategy of your competitors products is the first step in solving the problem. This can give you a range in which you can price your product. You can get the pricing data by scraping amazon
2) Is this a premium product?
People always pay a premium price for a premium product. What makes a product premium? – A product is considered premium only when the customer believe it is worth the price. Excellent marketing and branding are the ways to position your product as a premium product. You can get the relevant data by scraping amazon.
3) What are the problems with your competitor products?
Your competitor products might be having some defects. Or they might not be addressing a relevant problem. You have every chance of success If you are solving a problem that your competitor doesn’t. You can find these problems by analyzing the product reviews of your competitors. You can get review data by scraping amazon.
By analyzing data you can reach at a point where your profit margin looks healthy and pricing looks sensible. Buyers buy the value, not your product. Differentiate your product and position it as a superior product. Give people a reason to buy and that is the only way to succeed.