Amazon Seller Beginner Mistakes #4: Selling at Too Low a Price

In this series, we will cover some very common, but easy to avoid mistakes that many brands make when selling on Amazon. We call these “beginner mistakes”, but even some longer-term sellers make many of these beginner mistakes as well.

By learning to avoid these mistakes in advance, you can put your brand in the best possible position to success on Amazon.

Amazon Seller Mistakes #4: Selling at Too Low a Price to Make a Profit

One of the most common mistakes we see brands make on Amazon is selling at too low of a price.

This may seem like crazy talk. Amazon built their reputation on being the cheapest place to buy anything. Competition on Amazon is stronger than ever. How can a brand grow without competing on price?

Can a brand really succeed on Amazon by raising prices?

Amazon has changed

The truth is that Amazon’s fees and the ad spend required have skyrocketed over the past 5 years. Because of this Amazon is no longer the place to find the lowest price products.

At the same time, competition has increased exponentially. Every category has fierce competitors who are spending on advertising while running aggressive price promotions.

Don’t we have to be cheaper than our competition to compete?

Well, no. If there are competing products selling for less than your products, that brand is either losing money, or their costs are much lower than yours. Your competition may just have an advantage over you on what their product costs to manufacture. Or they may have a huge percentage of repeat customers and organic sales to make their business profitable.

These are not options for you.

What can you do to compete?

Should you just give up before you even start?

Absolutely not!

You can still win on Amazon. You just have to win by playing a different game than your low prices competitors.

How? By raising the perceived value of your products so that you can charge more. The more you charge, the more cash your business has to grow. You can invest that cash into marketing and advertising budgets to grow your brand even faster.

Raising the perceived value of your products

How do brands increase the perceived value of their products so that they can sell at higher prices? By communicating clearly to customers why your product is worth more than the other products they can choose to buy.

Here are a few ways to increase perceived value:

​1. High quality photography, listing images, and listing page content that clearly communicate the benefits and features of your product.‍

A high-quality listing page with high resolution photography, high quality listing images and bullet points can clearly communicate to shoppers that your products are worth the price you are charging.

An amazing listing page communicate that you care about your products and that they are probably of a higher quality than the products on the market with average or bad listing pages.

You also want to clearly communicate all the important benefits and features of your product while highlighting any differentiation your product may have compared to other products available on Amazon.

‍‍

2. Premium A+ content to tell the story of your product and your brand.

Get access to Premium A+ content, which unlocks access to video and interactive modules. You can use these to tell the story of your product and brands while communicating the premium positioning of your products.

Listing pages that use Premium A+ can sell for more and convert better than listing pages that use regular A+ or no A+ at all.

‍‍

3. Positive Reviews

Positive reviews that showcase a variety of very happy customers are key to being able to charge more than what your competitors do.

Make sure you cultivate these 5-star reviews by providing exceptional customer service and making sure you communicate your product’s features and benefits accurately and clearly in your listing page content.‍

‍

4. The Price Itself.

Finally, one of the best ways to communicate your product is high quality and high value is the price itself. When given very little information, customers use price to estimate how good a product is.

Most shoppers don’t want to buy the cheapest option. In fact, many customers seek out the premium options, because they value well-made, high-quality products more than they want to save a few dollars.

Conclusion

You can’t succeed on Amazon is you aren’t selling your product with a healthy profit margin. You need that profit to grow your business. Charge more by positioning your product as premium in your category. Communicate that your product is high value, highlighting the ways that it is better and different that the other products in your category. This will help you stand out on a very competitive marketplace and charge more than anyone else in your category.