hi and welcome back to another amazon selling video if you're new to my channel my name
is nikki kirk and i've been selling on amazon doing retail arbitrage all from my fifth wheel
rv all over the country in today's video i'm covering pricing strategies and what not to do
aka don't tank the price have you ever bought something sent it into amazon and then all of
a sudden all these other sellers start getting on it and slowly the price keeps going down down down
and now your profit is getting less and less and less and you're wondering what the heck is going
on well congratulations you are a seller on amazon it happens a lot now the good news is there are
things that you can do to limit your risk or to stop this from happening to you the main thing
is do not be someone who drops the price but let's get into what you can do or identify to
understand where you should price your items so there are some things that i do on the upfront
so before i buy a product or send it into amazon i'm looking for first that it makes a five dollar
minimum profit i'm sure you've heard me say this a hundred times it has to be five dollars for me
because that gives you a good buffer room so that with if the price does start to drop then you
still are making a profit and you're not taking a loss the second thing is that i price my item
high when i send them in fba this means that i'm not just matching whatever the buy box is
now when i'm identifying if it makes five dollars or not that i'm using off the current buy box of
when i scan it but when i get it home and i pack it up and i send it into amazon then i'm doing a
couple dollars ahead of that price so that if the buy box that it was currently at sells out
and now the next seller is selling it for a dollar or two more when my items get there if i'm at that
lower price well guess what i'll win the buy box but i'm losing out on profit because it was now
selling for a couple dollars more so i always price my items high when i send it into amazon
allowing for that extra room that should the other sellers drop off now i'm going to be priced higher
and get more profit now i just do a dollar or two it's really your call you could price
it real high if you want to i just do two dollars the third thing i consider is where did i find it
is it really easy to find is it a gated brand or category if it's not gated i found it at walmart
it's a kitchen item and literally any seller can find that item well guess what every seller is
going to find that item well not every seller but a lot of sellers are going to find that item and
the ones who are inexperienced or just want to make that quick turn they're going to price it
low and the price is going to start dropping so if you found it somewhere super easy
widely available it's not gated in any way anyone can find it anyone can sell it well then
that's kind of an indicator that the price might drop i always recommend doing your
research on kipa to make sure what is that price history over time if it's been selling for 24
for six months it's pretty easy to assume that it'll continue to sell for twenty four dollars
if however you happen to scan it at a fluke high price so maybe amazon was selling it and they sold
out and now it's going for 50 but normally it's 24. now that is a fluke and it might not stay
that high especially if other sellers come on that were selling it low and they just replenished it
they could make their profit with it low those are all things you want to look into so is the price
consistent over time was amazon selling it or they just sold out all little flags that will tell you
if the price is stable or not another thing to consider is the demand of the product now demand
is great right that means it's in high demand the price is going to go up but the exact opposite
actually happens when it first gets in demand so when it's first in high demand all of a sudden
all the other sellers are going to get it and now you have those other sellers who just want to flip
it quickly and are pricing it lower so you might actually see the price kind of come down a little
at first but if you were to hold out it will go back up now this is i'm talking about still before
i even bought it so if i see the price going down then i'm not gonna buy it to begin with but
if it's i already have it and it's in high demand just know that it will go down before
it goes back up because the more in demand it is the more sellers are looking for it the more
they're going to list it and flip it it does eventually come back up but that is one thing to
consider about high demand products okay so that perfectly leads me into the second part of my
you know system of pricing i've already bought it i sent it in and now all of a sudden ricky
comes on and cuts the price in half now what do you do the first thing to note is don't panic
don't just automatically match that price because you're like oh no i gotta move it don't do that do
your research what is the rank if it's a really great rank well then ricky's gonna sell out how
many does ricky have if ricky has 500 well that kind of sucks and you have to consider more
things but if ricky only has one or two again let ricky sell out now this is my example ricky for
this reason i scanned this product twice yesterday while i was outsourcing and the first time it was
23.99 but then the second time i noticed it was 9.99 why because ricky came on the listing
now ricky is a new seller and i know this because when i looked in store it says just launched next
to his name or her name whoever they are it says just launched next to it so i could safely assume
that they are a new seller and either they don't know what they're doing or something might have
happened but what i also saw in the app is that all the other sellers are still at 23.99 so i
actually bought this product because ricky will probably be sold out by the time it gets there and
because all the other sellers are still priced high that gives me hope that it will still be
priced high enough now why is ricky price so low well it could be a variety of different things
ricky could have got the product for 25 cents and so he's like yeah i'm gonna make a profit
at 9.99 i don't really care or ricky could have priced it wrong in their manage inventory they
could have accidentally put 9.99 but what they really meant was 29.99 it could have just been
a typo ricky could be a super experienced seller and have a deal with the brand or company to be
buying it direct and that would make it so they actually pay less up front cost now how
you would know this is if the seller feedback is a lot like it's in the thousands that's usually a
indicator that they are a professional seller selling a lot of products all the time so if
they got it for a good deal possibly the company won't let them price it for higher there's all
these different things now let's say ricky got it for really cheap if you ever feel bad about
pricing it matching what people are selling it on amazon please don't you don't have to undercut
or feel bad people don't have to buy from you it's all supply demand and the market and if
the market is saying it's this price even though you're making 50 profit and you got it for five
guess what make that profit you don't have to feel bad about listing it really high because
people don't have to buy from you they don't have to pay that price and that's how we make our
amazon businesses work so don't feel bad now other reasons that this could be a low price let's say
it was a grocery item it's like a wine chocolate item and we're coming up to summer multiple months
and or maybe it's expiring and so ricky's just pricing it to get rid of it whatever the reason
when you see that happening you do not have to match it and that is the key thing i want to drive
home today you don't have to match that price let them sell out look into it how many do they have
what are the other sellers doing don't just match the price i have products that i've been selling
on and off for years and the reason they're on and off is because sometimes the price does come down
and then it's not worth it for me to buy it but then it goes right back up and i buy it
again i keep scanning it because i know it was a good product and i know it'll come back up
so just because you're not selling it or you can't sell it now if you did in the past definitely keep
scanning and doing it because that's why they keep going on and off because of the tankers so you
might have heard me in other videos say don't just blindly match the buy box when you are in your
manage inventory you don't have to just hit match if i had seen this in my managed inventory i don't
have it yet so i can't show you but let's say i list it at 23.99 and then i see that it's 9.99 now
guess what i don't have to blindly just match that if all i do is hit match price now i'm losing
money because i didn't get it for enough money to be able to profit at 9.99 but you don't have
to just match it go ahead and take a look and see how many they have all you do is go to the website
click the other offers and see what are they listing it at
so you can see actually the buy box price is 23.99 right now the 999 ricky is not even getting it
you know why because it got sent in in its back stock
so you can see here there's not even going to be in until june that's another thing to consider so
i wouldn't know this if i didn't come to the page and as you can see right here on keepa ricky only
has one so i'm going to let ricky sell out so if you see this happening definitely check how many
do they have what are the other sellers at if you start to see the other sellers start matching it
that's when you have to seriously consider what's the rank how long do i want to be sitting on this
what's my cut loose loss like do i want to just flip it and make money or not but as you start
to just match it then that means the other sellers who aren't really looking are also matching it and
that creates that race to the bottom you are still buy box eligible if you are within five percent
that means you can raise your price five percent above the buy box current price and you will still
get rotated in as i just pointed out how amazon does it is based on when your stock is available
where you're at in relation to the customer or where your stock is if it's going to be
faster to ship from you well they're going to want yours to sell right so they'll put you
in the buy box it also has to do with when you launched how your account matrix are there's so
many different things but the key is this you can still price it higher and still win the buy box
don't be a price tanker don't just match the price do a little bit of research and the more you do it
the more you will know just by looking at it how like i can kind of know like right when i scanned
it i knew i wasn't even worried about ricky and i bought it anyways so the more you can go and do it
the better it'll get i promise you so if you have an item that is tanking don't just keep matching
don't lower don't think if you're a new seller you have to go below the buy box you don't you
can go above it and still win the price so do not just blindly match or undercut you don't need to
i hope this video was helpful and just helping you understand different things to look for as
far as pricing and not taking the price if you want to learn more from me or join my beginner
fba amazon selling course and support group definitely check it out the links are below
or you can go to beginnerfba.com to join and if you are an existing seller and you want to get
ungated i have my engaging guys as always or i have my bolo support group and sourcing group
they are available for both the us and canada so check out whichever one you want below all
the links are below thank you guys so much for watching happy sourcing and happy selling