Do you cut your prices whenever your Amazon competitors cut theirs?
Who’s going to reach the bottom first? Are there other options to cutting what you charge?
Buyers use many factors to decide who to choose from, and very few choose the cheapest supplier regardless of other factors. Repricing is an important strategy for Amazon sellers, and it is affordable even for a small retailer.
What Factors Affect Amazon Buyers’ Decisions?
First impressions matter. This is one reason we all spend so much on website design. Amazon spares you this cost because all listings look the same. Or do they?
Are you using the same manufacturer-supplied images as every other small business seller? Engage a professional photographer and add extra photos of your products, taken from different angles, so buyers have a better idea of its size and shape. Include interior and working parts shots that other sellers don’t bother with. If multiple color options are available, use one picture that shows all the color possibilities together. Think laterally and make your seller’s page stand out.
We now know that many buying decisions are based on emotional factors and that we need to understand a buyer’s emotional intelligence to make a sale more likely. Amazon limits you in how you can use color and layout to influence emotion, but you can use your description and color options in photos to influence buyers.
In the image above you can clearly see the prominence given to the brightly colored dumbbell set. The colored dumbbells will appeal to the emotional intelligence of female buyers, especially when seen against the contrast of the masculine hex designs below.
This screenshot for kettlebells gives even more prominence to attractive designs with high emotional appeal.
Discounts are another way of appealing to the emotions, particularly since Amazon highlights your discount in red text, as is offering a free return facility because it removes any risk attached to the purchase.
Amazon displays your stock levels, and this probably affects how likely you are to feature in the Amazon Buy Box. Carrying stock has costs, but if you make more sales as a result, then it is worth considering.
Bullet points are great, but you still need to be careful in crafting your description. Emphasise the benefits of each feature for maximum appeal. Cut out any unnecessary words and be certain that the English are perfect.
Do you deliver internationally? If you want the sale, you need many delivery options, and charges need to be low.
Feedback and Reviews
Small businesses need to look after your customers especially well because you are your business. Make sure your personality coming through is a business asset rather than a handicap.
Poor feedback or one-star reviews will kill your Amazon business. Only sell authentic, high-quality merchandise, make sure photos give some idea of scale and include sizes in inches and centimetres: All of these will help to ensure that buyers receive what they expect and are not surprised by the smaller than expected size of your merchandise.
When a shopper asks a question, answer it immediately. Yours might be a one or two person operation but you can still assign the task to a freelancer on the other side of the Earth when you are not available. Polite and helpful answers to questioners give people useful clues as to your character and how easy you would be to deal with if they have any problems.
How Many Sales
Nobody wants to be first. High numbers of sales show you are a reliable seller who knows what you are doing. Getting your first sales is vital to increase customer confidence, so cut your prices and get them. You can raise your prices gradually once you have a good number of sales and reviews.
How Effective Is Repricing on Amazon?
An Amazon repricer program is worthwhile because it does a lot more than cutting your price to make you the cheapest seller. It will automatically change your prices as competing Amazon sellers stock levels and prices change.
Repricing programs use artificial intelligence to make you the most profit, rather than just the highest number of sales. They recognize that fewer sales at a higher profit margin are better for your bottom line than more sales at a break-even price or barely above it.
Should You Buy into a Repricing Program?
Yes, repricing software is an essential part of marketing automation, which allows your tiny company to compete with the big boys. However, you do need to get everything else right so you don’t have to compete on price alone.
Prices are important because customers expect low prices from Amazon sellers, but buyers also base their decisions on factors such as stock levels, color options and indeterminable emotional factors. You should use A/B testing to find the best options for your business as well as opting in to an Amazon repricing program like Feedvisor or Optmizely.