This is another great question to tackle as it’s one of the first big decisions you have to make when you start selling on Amazon.
To answer it, I’m going to tell you a story about my friends, and Amazon entrepreneurs, Kate and Suzi, and how they went from making ZERO to 60k a month in sales.
And you’ll be shocked at how they priced their product…
Back in Summer 2017, Kate and her business partner Suzi launched their first product on Amazon.com (USA). They took time to research their market and not only did they find the perfect product, they determined their target audience down to a precision! They chose a gift item to be bought by grandmas for their teenage granddaughters.
But, before we get to the pricing, let’s see how they did.
In December of the same year, they racked up an impressive $32,000 in one month – not bad for their rookie year and by selling just one item!
During the next year, the duo reinvested some of their profits and sales grew to $50,000 a month in December 2018. A year later, despite having trouble shipping their product from China, they still managed to make over $60,000.
Now, here’s the interesting part. Since 2017, they’ve been selling just one item that they bought from China for 75 cents each and sold for $14… and it’s still selling at that price today!
Now, how does this story answer the question?
Because Kate and Suzi’s pricing strategy goes against much of the advice you’ll read online. The usual recommendation is to sell your item between $25 and $40 – and $14 is way lower than that.
But by sourcing their product for 75 cents, their profit margin was extremely healthy – in fact, it would be hard NOT to make a profit with those numbers!
So my answer is, as long as the numbers work in your favour, you can sell at ANY price point.
And if that means doing the opposite of what the Amazon ‘gurus’ on Youtube tell you, then so be it. By being a little counterintuitive, it’s possible to make your Amazon business a HUGE success. Just ask Kate and Suzi…
Pricing your product is one of the trickiest things to get right when you’re just starting selling on Amazon. But, if you focus on the numbers and having a nice, healthy profit margin, you can sell at ANY price. Despite what the experts may say!
I hope you got something out of this guys and gals. If you have any questions, I’d love to help you out.
Virtual hugs and kisses!