All language subtitles for 5. Merch By Amazon Pricing

In this lesson, I'll show you a different pricing strategies that would use your goal, as well as

my own pricing strategy that has allowed me to tear up to 80 100k and sell over a million dollars in

sales.

Your pricing strategy depends on many factors, including your tier level, the niche that you're in

and how competitive it is, and whether you're playing the short or long term reviews game.

And if you're relying on free or pay traffic gets in your pricing strategy.

Right is definitely key to your product selling and ranking on Amazon.

And you definitely should have a goal in mind when choosing your pricing strategy.

Before we go on to explain the different pricing strategies.

Let me show you where you change the price for different marketplaces.

You can change your price right here.

You simply click on details of the product that you want to change the price of.

And as you start editing The Price, for example, 1799, you can see the estimated royalty rate here.

And if you don't have a particular marketplace selected, you can simply add it like so.

And it's price laakso and the same thing applies to all of the products.

Now, here are some tried and tested pricing strategies to consider.

The first strategy is pricing strategy for tier wraps up to 500 or otherwise called nonprofit pricing

strategy.

There are many sections where your products could rank.

You could rank on the featured product section based on sales, velocity reviews and algorithm products

rotation.

Then we have numerous arrival's where you can rank based on how recently the products were listed and

sales velocity products in the section with the highest sales velocity will show the highest.

Then we have Bilo to high price.

You can run care based on the lowest price and sales velocity.

One of the reasons customers buy on Amazon is because of the lowest price of some products and because

they believe they can find a bargain driven by high competition among sellers.

So they feel to buy low to high and if they like a design, then they buy it from there.

So to appeal to these customers, we want to price as low as possible in order for our designs to show

up in the low to high section of our niche and so that we can make sales and start ranking in the future

product section.

That way, this strategy allows you to get more sales and more reviews faster and you can maintain a

low BSI this way quite easily.

This is by far the best pricing strategy for Tearin Up, and it has worked for me tremendously.

You can then raise your prices incrementally by one dollar after making a few sales until you find that

sweet spot so you don't leave any money on the table.

FBA products can be cheaper than the lowest price movements by Amazon products, but they are not in

every niche.

They're shipping is typically not as fast as Amazon's.

We can't really compare principle with Amazon's prime shipping and they don't typically subnet and cross

niche.

So if our listing is well optimized and we target the audience with a superior design, then we should

be fine.

Another drawback of pricing as low as possible is we might believe in money on the table by not raising

our price at the right time.

So we have to monitor our listings closely for pricing opportunities.

I usually rely on my memory when I see products, keeps getting sales or I use a chrome extension.

Like pretty much I use the analyze product section.

I then open a new Amazon tab and I check where my product is ranking for different relevant keywords.

And if it's got a good BSR amongst the overall Ngige and if I see that it's ranking well, I then go

ahead and increase the price.

Here's what I mean.

Let's say your product is amongst this niche right here.

You simply have different keywords that you think you might be ranking for.

For example, anti trump the detergent shirts and see where you rank in that way and if you're ranking

well in the featured section right here.

So if your design is within the first page and it's got a good BSR, you can then start testing by raising

your price and see what happens then.

Here's what I mean when I said you can rank in different places.

So typically customers can actually filter products by these variables, either buy low sell high price,

really high to low price.

And if someone wants to buy products that have higher price, maybe they're looking for premium products,

who knows?

But typically people would filter by price low to high or buy new arrivals and also average product

reviews.

So if you have good product reviews, then you're showing in this category.

Our next strategy is the long term success pricing strategy.

The long term success of a product is driven by the number of positive reviews and the number of consistent

sales.

To achieve this, it works the same way as the previous strategy.

We want to price our products as low as possible in order to generate sales traction, and the more

our products sell, the highly likely they are to receive reviews, hopefully positive ones, and so

they have a better chance for long term success.

Aim to get five or more positive reviews, then increase your price to get higher royalty.

Keep increasing your price with one dollar after a few sales until you find your sweet spot for long

term sales and royalties.

While keeping an eye on the volume of your sales and where your products ranks amongst competition.

If your sales slowed down drastically, you can always drop the price down and keep adjusting your price

based on your rank and sales volume to stay competitive.

The next strategy is pricing strategy for high royalties.

This is the best strategy.

If you want to make higher royalties, you want to price your products from the store at the recommended

price for standard t shirts.

It's nineteen ninety nine for this strategy to work.

You really have to get your products in front of people for them to buy it, either by having well optimized

keywords and listings and relying on organic traffic by driving external traffic or by using Amazon

advertising.

Customers won't mind buying a great design at these prices if they are unique, high quality, and your

listeners are well optimized because with much products, customers usually buy with their eyes first,

then price.

Second, we've also noticed that Amazon started pushing new listings regardless of their price or sales,

to give them a chance to sell on a rotational basis.

And if your design is decent enough, then it will sell.

And as it continues to sell, Amazon will continue to recommend it and eventually place it in the featured

product section.

You can even raise your price above the Amazon sales price if your design takes off and sells well.

The next strategy is pricing based on niche average pricing.

This strategy relies on pricing slightly below the average pricing in order to get a chance to rank

and sell.

For instance, if the niche average is sixteen ninety nine dollars, you could price your products at

sixteen ninety five or six ninety seven.

For instance, you can get the average price from tools like Mirch and former Ninja or merch research.

I leave your links in the description if you want to check out these tools or simply add the best prices

of the best sellers in that niche and divide by the number of products.

This is definitely the longer way of doing it.

But if you want to do it this way, then why not?

The next strategy is competition based pricing strategy.

It's almost always guaranteed to have lower prices when you have high competition or high supply and

higher prices when you have lower competition all over supply.

This is one of the fundamental rules of economics, supply and demand.

Therefore, we should always price our products according to the market and let the market dictate or

decide our price, assuming we have a decent quality design.

If the niche you are getting into doesn't have much competition, we can afford to increase our price

above the average and keep testing.

Until you find that sweet spot, your success metrics are always going to be sales and where the listing

ranks.

If your design continues to sell, this means that the price is right for the value perceived.

So don't be afraid to test raising the price and adjust until you find the sweet spot where you continue

to get sales and you feel that if you raise the price any more, then you'll get less sales and less

royalties.

If your niche is very competitive with a lot of search results, then it makes more sense to either

start with the lowest price possible or price below the average price, then increase your price incrementally

until you find your sweet spot as you start getting more sales and reviews.

I believe that there's no best pricing strategy for all circumstances.

It all depends on your goal, your niche and your design.

The best thing to do is to start with the strategy that best fits your goal, then experiments with

other strategies until you find what works best for you.

Don't be shy of raising your prices if it makes sense so you don't leave any money on the table.

Personally, I priced as low as possible in high competition issues.

Then I raise the price incrementally until I find the sweet spot in case of a little competition I price

at the recommended price.

If it makes sense, I try increasing the price until I find the sweet spot for maximum royalties.

If I don't make sales, I keep decreasing the price until I make sales.

Then I let my design run a bit and get high sales velocity.

The latest increase in the price again, until I find my sweet spot and this is it.

Go ahead and test out different strategies and find out what works best for you and rinse and repeat.