Prices fluctuate up and down in the Amazon market. In order to catch the most sales sometime we need to adjust our pricing on a regular basis. There are automatic repricers that you can pay for like Bqool. Amazon themselves has a free repricer. I do not recommend Amazon’s repricer because it is made by Amazon. It tends to drive your prices through the floor and mostly it will lose you money. Remember it is a tool built by Amazon so it will always benefit them more than you. Don’t use it! Everyone I know that has tried the free Amazon repricer has been very unhappy with the results.
So unless you have the cash to shell out for a repricer like Bqool (which is the best repricer available and worth the money once you have it) you will need to manually reprice you items.
The process is fairly simple.
First open a new browser tab and go here to the Amazon FBA Calculator.
In a separate browser tab sign in to your Seller Central account.
Click the Inventory tab.
Click Manage Inventory.
Copy the ASIN of the item you would like to change a price on.
Paste that ASIN in the box on the FBA calculator browser tab and hit search.
You will see this screen.
Now switch back to you seller central browser tab and find your items current selling price on Amazon in the column titled “Price + Shipping”
Head back over to the FBA calculator tab you opened.
Take that price and enter it into the “Item Price” box under the Amazon Fulfillment column.
If you are using our spreadsheet to record sales, open it now.
Copy your item cost.
Paste the item cost into the Prep Service box (Amazon stupidly did not give a field for item cost, but the prep service box calculates what you need just fine)
You will want to account for the amount it cost you to ship your item to Amazon in the “Inbound Shipping” box. I usually enter 1 dollar as my shipping except when the item was heavy or large. There is no way, that I know of, to find the exact shipping per item in a shipment. Use your best judgement.
Once all of your boxes are filled in click calculate over to the right hand side of the screen.
The number you will see in the “Margin Impact” box will be your profits on that item.
You can then play around with different prices in the “Amazon Fulfillment” box to see what amount you will make at what price.
What to do if the price on my item has dropped?
If the price has dropped considerably on your item and it looks as if you will lose money, you have options.
You can use Keepa to see price history and gauge when the price will go back up to what you would like to sell the item for. Many sellers are all sending in the same items at the same time. All of that competition can temporarily make the price on an item drop. Keepa will show when it may rebound.
Often looking at prices around major holidays you will see where items that are not selling well the rest of the year have a spike in price. You can save slow moving or badly priced items for those times of year, or go ahead and take what you can get for the item now instead. We almost always take what we can get on an item now as long as we are making a profit. Ultimately its up to you to choose the best strategy for your business.
If you decide that the price will not come back up to what you need it to be at some point, you still have options.
You can recall items (have Amazon ship them back to you so you can return them to the store ect.) for just 50 cents an item. Amazon does not charge you a shipping fee to send your items back to you. Really it is that cheap, just 50 cents an item.
Another alternative is to have Amazon destroy the items for 15 cents each.
We almost always have our items that don’t sell well returned to us for the 50 cent fee.
How do I know when to raise my price?
Sometimes you may have an item that is selling too fast to be true. In this case you may want to check if your price is too low.
Checking if your price is to low is also a simple process.
Just like above we need to navigate to the “Manage Inventory” section of Seller Central.
Find your product on the page and click the title which will show as a blue link.
This takes you to the Amazon sales page for your item.
You will need to look for a blue link that says “New From”. Depending on the listing Amazon likes to move this link around. It can usually be found below the listing.
The other common place to find the “New From” link is to the right of the screen under “Other Sellers On Amazon” In the screen shot below you can see both placements to make it easy to find.
Once you have found the link click on it to see this page.
Here you can see every seller that is currently selling your item. For FBA we usually only care about FBA prices.
To see only FBA prices click the check box to the left of the screen to show “Prime”. You can check the “Free Shipping” box as well if you would like to see what price merchant fulfilled sellers are selling at with free shipping.
In this scenario we are pretending that you are the first seller with a price of 24.50. As you can see the next seller up is selling their item at 27.98. So you know you can at least go as high as 27.98 without affecting how fast your items sell.
Depending on how many of the item the next few sellers have in stock and how good the rank of the item is, you can easily price your item much higher and still make a quick sale. Being the lowest price is not always the most profitable. To find out how many of an item a seller has in stock check out this post.
Once you know how many of an item the other sellers have in stock, you can decide how many sellers you want to wait out and determine what price to set your product at. While being the lowest price might seem like the best way to make sales, that is not always the case. Now that you know how to reprice your items up or down, you are on your way to increasing your profits and making faster sales.