{"id":9718,"date":"2017-09-28T14:01:06","date_gmt":"2017-09-28T13:01:06","guid":{"rendered":"http:\/\/www.repricerexpress.com\/?p=9718"},"modified":"2024-12-13T10:38:05","modified_gmt":"2024-12-13T10:38:05","slug":"amazon-pricing-tip-skip-mcgrath","status":"publish","type":"post","link":"https:\/\/www.repricerexpress.com\/amazon-pricing-tip-skip-mcgrath\/","title":{"rendered":"3 Expert Amazon Pricing Tips Courtesy of Skip McGrath"},"content":{"rendered":"<p class=\"red_bold_sm\"><strong><a href=\"http:\/\/www.skipmcgrath.co.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\">Skip McGrath<\/a> and his wife, Karen, began selling on eBay in 1997 shortly after closing a small antiques shop they operated in New York. In 2006, Skip began selling on Amazon, and last year he was named as one of Amazon&#8217;s top 10 sellers for the holiday season.<\/strong><\/p>\n<p class=\"red_bold_sm\">Today, Skip and Karen list over 900 products on Amazon, alongside their eBay business, which is still going strong. In today&#8217;s post, Skip offers three top tips for Amazon sellers to consider before deciding to lower their prices.<\/p>\n<h2>1. Check Competitive Sellers&#8217; Feedback Score<\/h2>\n<p>I have several products where I experience stiff pricing competition from other sellers. However, when I took time out to check their sellers&#8217; accounts, I noticed their feedback scores were often as low as 90%. Whereas, my feedback rating is 100%.<\/p>\n<p>Amazon usually puts the lowest price seller in the Buy Box, but not if their account metrics are poor.<\/p>\n<p>My process is this\u2014I go through my listings and wherever I see these sellers (with poor metrics) undercutting me, I raise my price. The result, in almost every case, I\u00a0retain the Buy Box whilst increasing my profit margin.<\/p>\n<p>Therefore, I\u00a0advise you to do the same. Start by\u00a0checking all the competitive sellers and check their feedback scores. If they are much lower than yours (note, yours should be at least 98% or higher), then go ahead and raise your price.<\/p>\n<p>After, waiting for a 24-hour period, go back and have a look at who&#8217;s occupying the Buy Box. In my experience, over 90% of the time, you&#8217;ll be there\u2014even with your higher price!<\/p>\n<h2>2. Match the Price of the Lowest Priced FBA Seller<\/h2>\n<p>The other factor I\u00a0consider is fulfilment\u2014whether the seller is FBA or MF. Karen and I are 100% FBA sellers. We no longer sell any Merchant Fulfilled (MF) products.<\/p>\n<p>When I look at my competitive listings I usually find it&#8217;s the MF sellers who are undercutting me. Another I tend to notice is that although one or two other FBA sellers may be under pricing me, their prices are usually higher than the MF sellers.<\/p>\n<p>In these case, I\u00a0match the price of the lowest priced FBA sellers which usually gives me a boost over the MF sellers.<\/p>\n<p>Remember, Amazon has approximately 60 million <a href=\"https:\/\/www.amazon.co.uk\/gp\/prime\/pipeline\/landing?ie=UTF8&amp;*Version*=1&amp;*entries*=0\">Prime members<\/a>. These are people who get free two-day shipping on all their orders. Many of these members will check the Prime Only box when they search on Amazon. When they do this, they only see the Prime-eligible products, products that are in FBA. MF sellers will not even appear in their searches.<\/p>\n<p><strong>Related reading:<\/strong> <a href=\"http:\/\/www.repricerexpress.com\/pricing-strategies-for-amazon-sellers\/\">Pricing Strategies for Amazon Sellers<\/a><\/p>\n<h2>3. Is the 2% Rule Now the 0.5% Rule?<\/h2>\n<p>The other factor I have observed, is that Amazon&#8217;s search algorithm tends to favour FBA items regardless of the price. I&#8217;ll often find myself in the Buy Box at a slightly higher price just because I am FBA. I honestly don&#8217;t know why that is, but I see it all the time and as an FBA seller, l&#8217;m not complaining!<\/p>\n<p>Amazon used to have what they called the &#8220;2% rule&#8221;. This meant that if a product&#8217;s price was within 2% of a competitor\u2014Amazon considered it to be essentially the same price, and they would rotate those sellers into and out of the Buy Box. However, they dropped that rule about two years ago.<\/p>\n<p>Today, Amazon still has a percentage pricing rule but its exact details are not known. I find that I\u00a0can raise my price at least 0.5% above another seller\u00a0and\u00a0still get a share of the Buy Box\u2014so I would speculate that the level is somewhere around there.<\/p>\n<h2>Final Thoughts<\/h2>\n<p>This has also been true on products where I compete with Amazon. If I see Amazon selling an item for $17.69 and I set my price at $17.77, this does not seem to make Amazon trigger a lower price and they allow me to rotate in and out of the Buy Box with them.<\/p>\n<p>In addition to price, Amazon also looks at seller&#8217;s reputation. If your account is not in good standing, if you have low star ratings or poor feedback then even though your price is lower, you may not get the Buy Box based on your seller standing and reputation.<\/p>\n<p><strong>Related reading<\/strong><br \/>\n<a href=\"http:\/\/www.repricerexpress.com\/sellers-guide-amazon-feedback-software\/\">A Sellers&#8217; Guide to Amazon Feedback Software<\/a><strong><br \/>\n<\/strong><a href=\"http:\/\/www.repricerexpress.com\/how-to-compete-with-amazon\/\">How to Compete with Amazon<\/a><\/p>\n<p><em>*A version of this blog originally appeared on <a href=\"http:\/\/www.skipmcgrath.com\/\">SkipMcGrath&#8217;s blog<\/a><\/em><\/p>\n<p><strong>About the author:<\/strong><\/p>\n<p><img decoding=\"async\" class=\"size-full wp-image-9876 alignleft\" src=\"https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2016\/09\/tn_Karhar.jpg\" alt=\"Skip McGrath\" width=\"200\" height=\"150\" \/>Skip McGrath is a very experienced online seller who runs a great blog full of resources for eBay and Amazon sellers. Sign up for Skip&#8217;s newsletter and let him show you how to make money online.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Skip McGrath and his wife, Karen, began selling on eBay in 1997 shortly after closing a small antiques shop they operated in New York. In 2006, Skip began selling on Amazon, and last year he was named as one of Amazon&#8217;s top 10 sellers for the holiday season. Today, Skip and Karen list over 900 [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":10991,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,7,9],"tags":[],"class_list":["post-9718","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-amazon","category-fba","category-tips"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>3 Expert Amazon Pricing Tips Courtesy of Skip McGrath<\/title>\n<meta name=\"description\" content=\"Learn Amazon pricing tips from Skip McGrath with RepricerExpress. Optimize your pricing strategy for better sales and profits.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.repricerexpress.com\/amazon-pricing-tip-skip-mcgrath\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"3 Expert Amazon Pricing Tips Courtesy of Skip McGrath\" \/>\n<meta property=\"og:description\" content=\"Learn Amazon pricing tips from Skip McGrath with RepricerExpress. Optimize your pricing strategy for better sales and profits.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.repricerexpress.com\/amazon-pricing-tip-skip-mcgrath\/\" \/>\n<meta property=\"og:site_name\" content=\"RepricerExpress\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/repricerexpress\" \/>\n<meta property=\"article:published_time\" content=\"2017-09-28T13:01:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-13T10:38:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/09\/thumbsup-man-centre.png\" \/>\n\t<meta property=\"og:image:width\" content=\"880\" \/>\n\t<meta property=\"og:image:height\" content=\"587\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Seamus Breslin\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Seamus Breslin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.repricerexpress.com\/amazon-pricing-tip-skip-mcgrath\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.repricerexpress.com\/amazon-pricing-tip-skip-mcgrath\/\"},\"author\":{\"name\":\"Seamus Breslin\",\"@id\":\"https:\/\/www.repricerexpress.com\/#\/schema\/person\/3a136b67199cecf1cc48ce34d50ef4bc\"},\"headline\":\"3 Expert Amazon Pricing Tips Courtesy of Skip McGrath\",\"datePublished\":\"2017-09-28T13:01:06+00:00\",\"dateModified\":\"2024-12-13T10:38:05+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.repricerexpress.com\/amazon-pricing-tip-skip-mcgrath\/\"},\"wordCount\":784,\"publisher\":{\"@id\":\"https:\/\/www.repricerexpress.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.repricerexpress.com\/amazon-pricing-tip-skip-mcgrath\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/09\/thumbsup-man-centre.png\",\"articleSection\":[\"Amazon\",\"FBA\",\"Tips\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.repricerexpress.com\/amazon-pricing-tip-skip-mcgrath\/\",\"url\":\"https:\/\/www.repricerexpress.com\/amazon-pricing-tip-skip-mcgrath\/\",\"name\":\"3 Expert Amazon Pricing Tips Courtesy of Skip McGrath\",\"isPartOf\":{\"@id\":\"https:\/\/www.repricerexpress.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.repricerexpress.com\/amazon-pricing-tip-skip-mcgrath\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.repricerexpress.com\/amazon-pricing-tip-skip-mcgrath\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/09\/thumbsup-man-centre.png\",\"datePublished\":\"2017-09-28T13:01:06+00:00\",\"dateModified\":\"2024-12-13T10:38:05+00:00\",\"description\":\"Learn Amazon pricing tips from Skip McGrath with RepricerExpress. 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