{"id":8858,"date":"2017-06-21T10:00:39","date_gmt":"2017-06-21T09:00:39","guid":{"rendered":"http:\/\/repricer.wpengine.com\/?p=8858"},"modified":"2024-12-12T17:24:15","modified_gmt":"2024-12-12T17:24:15","slug":"test-amazon-prices","status":"publish","type":"post","link":"https:\/\/www.repricerexpress.com\/test-amazon-prices\/","title":{"rendered":"Why Sellers Should Test Their Amazon Prices"},"content":{"rendered":"<p><strong>Interested in maximising your sales? Good news \u2014 RepricerExpress can tell you how! It\u2019s all about testing your Amazon prices to see which figure is the magic one, so without further ado, here\u2019s today\u2019s post!<\/strong><\/p>\n<h2>Testing Your Amazon Prices<\/h2>\n<p>There may be one or two sellers out there who hit upon the perfect price right away, but it\u2019s really not a strategy we can recommend. Even if you do oodles and oodles of research beforehand to see what numbers the market demands, it\u2019s still no guarantee they\u2019ll scoop up your wares at those prices.<\/p>\n<p>Instead, just test out prices to see exactly what works. The funny thing about buyers is no matter how predictable they are on paper, rules tend to fly out the window in actuality. Partly this is because shoppers shop with their emotions as well as with their heads, and it\u2019s also partly because data\/products\/prices fluctuate so regularly, testing is a necessity.<\/p>\n<p>But then the next question becomes: what method(s) of testing work best?<\/p>\n<h2>A\/B Testing on Amazon<\/h2>\n<p>This is a super old method of statistical testing, one which uses Bayesian analysis to figure out results in small batches. The maths is a bit complicated and you don\u2019t have to really understand how it all breaks down, just <a href=\"http:\/\/www.repricerexpress.com\/6-ideas-ecommerce-ab-testing\/\">how to use A\/B Testing<\/a>.<\/p>\n<p>Take one piece of data from your site that you\u2019ve had for a while, change it (and only it), and measure the results. That\u2019s it. That\u2019s how simple it is. The drawback, of course, is that it can be kind of lengthy to test everything you want, but it\u2019s a highly precise way of nailing down exactly which element needs to change (or stay the same).<\/p>\n<h2>Amazon Dynamic Pricing<\/h2>\n<p>You knew it was just a matter of time before we hit upon repricing, right? Well, here it is! Dynamic pricing, while not exactly the same as repricing, does share many common elements, namely that strategies and intelligence play roles in determining how to set prices.<\/p>\n<p>Probably the biggest example you see today is with airlines, who fluctuate their prices depending on demand, date, capacity, destination, and a host of other factors. Essentially, you\u2019ll be lowering prices when demand is low (and\/or supply is high), and raising them when it\u2019s high (and\/or supply is low).<\/p>\n<p>And if you use the right repricing software (like RepricerExpress) and<a href=\"http:\/\/www.repricerexpress.com\/amazon-repricing-strategies-every-seller-needs-to-know\/\"> employ dynamic pricing smartly<\/a>, then you can see gross profit margin increases of up to 10% \u2014 not too shabby, eh?<\/p>\n<h2>Competitor Price Index<\/h2>\n<p>This is a handy-dandy measurement that tells you how changes in price levels translate to things like inflation and value of wages\/salaries. And using it doesn\u2019t require a whole lot of data, just data that measures price and how it\u2019s weighted.<\/p>\n<p>For example, a Big Mac in London costs about \u00a32.89 (price data), and (this is really roughly simplifying thing) costs \u00a36.50, the <a href=\"http:\/\/www.bbc.com\/news\/business-20204594\">minimum wage in the country for those aged 21 and over<\/a> (weighting data). So for McDonald\u2019s to make a profit, one worker would have to produce more than two Big Macs per hour to cover the cost, plus the cost of materials. You can check this out in more detail with the Economist\u2019s Big Mac Index, but that\u2019s roughly how Competitor Price Index works.<\/p>\n<p>And how this translates into the world of Amazon is CPI tells you how relatively you\u2019re over- or under-valuing your goods in comparison to other merchants selling the same thing.<\/p>\n<h2>Brand Value<\/h2>\n<p>This is pretty similar to CPI, but with one key difference: how much your product is worth depends on its brand. Sticking with fast food, let\u2019s compare McDonald\u2019s with McFoxy, a knockoff chain found in Ukraine. Because people are more familiar with Big Macs and supersized fries, they\u2019re more willing to pay premium prices at McDonald\u2019s and expect cheaper costs at McFoxy because the products are knockoffs (and of a cheaper quality).<\/p>\n<p>Same thing on Amazon. If you\u2019re selling, say, Mac Air chargers, you can list them at premium prices. But if you\u2019re selling chargers compatible with Mac Airs that <em>don\u2019t<\/em> have the Apple logo on them, then the price has to be less.<\/p>\n<h2>Final Thoughts<\/h2>\n<p>You might be wondering why we listed various methods of Amazon pricing instead of just talking about the pros and cons of it, and that\u2019s because we know how important it is to have concrete tips you can use.<\/p>\n<p>Plus, here\u2019s a bonus one for you: using <a href=\"http:\/\/www.repricerexpress.com\/\">RepricerExpress<\/a>, yeah! But wait, there\u2019s something you gotta do first: <a href=\"https:\/\/dashboard.repricer.com\/register\/do\/repricer?utm_source=rex-blog&amp;utm_medium=referral&amp;utm_campaign=rex-to-repricer-registration&amp;utm_activity=take-action\">sign up for your free 15-day trial<\/a> so you can get in on the goods.<\/p>\n<p><a href=\"https:\/\/dashboard.repricer.com\/register\/do\/repricer?utm_source=rex-blog&amp;utm_medium=referral&amp;utm_campaign=rex-to-repricer-registration&amp;utm_activity=take-action\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-11085 size-large\" src=\"https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-768x330.png\" alt=\"Free trial\" width=\"1024\" height=\"440\" srcset=\"https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-768x330.png 768w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-300x129.png 300w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-1024x440.png 1024w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-200x86.png 200w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-400x172.png 400w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-600x258.png 600w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-800x344.png 800w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-1200x516.png 1200w, https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial.png 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<p><strong>Related:<\/strong> <a class=\"LinkSuggestion__Link-sc-1mdih4x-2 jZPuuT\" href=\"http:\/\/www.repricerexpress.com\/sellers-guide-amazon-repricing-software\/\" target=\"_blank\" rel=\"noopener noreferrer\">An FBA Seller\u2019s Guide to Amazon Repricing Software<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Interested in maximising your sales? Good news \u2014 RepricerExpress can tell you how! It\u2019s all about testing your Amazon prices to see which figure is the magic one, so without further ado, here\u2019s today\u2019s post! Testing Your Amazon Prices There may be one or two sellers out there who hit upon the perfect price right [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":21700,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,17,7],"tags":[],"class_list":["post-8858","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-amazon","category-ebay","category-fba"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Test Your Amazon Prices for Success | RepricerExpress<\/title>\n<meta name=\"description\" content=\"Interested in maximising your sales? Good news \u2014 we can tell you how! 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