Amazon pricing strategy for ecommerce

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When you’re a seller, setting the right price for your item on Amazon is critical to your success. By developing the amazon pricing strategy before launch, it will help you identify the products and product lines you want to add to the marketplace. However, setting prices is not as easy as choosing a lower price to reduce competition or a higher price to make more money.

What is an Amazon pricing strategy?

Pricing on Amazon is very competitive. Not only does it affect the chances of winning the Buy Box, but it is also one of the main factors that contribute to a customer’s final decision of where to make its purchase. 

Amazon pricing strategy refers to price movements in the marketplace, sellers must applay this pricing strategies to remain competitive on the platform. It is based on the assumption that buyers compare prices from different sellers for the same product before making a purchase.

What are the different Amazon pricing strategies?

With the right strategy, Amazon sellers can use product pricing to stand out as consumers often find the lowest price. However, markup is a balance between pricing a product for sale and maximizing revenue per unit. Brands should adopt their amazon pricing strategy, which focuses on systematic optimization. So what’s the best amazon pricing strategy?


This pricing strategy is the most commonly used by Amazon merchants to compete. You can adjust the product price manually or by using an automated pricing tool such as the Netrivals repricing tool to reflect the current minimum price.

Stable prices with exceptions:

Buyers have more confidence in medium to high value products when the price. When you plan to sell on Amazon for a long time, cutting prices at every opportunity may not bring in the money you need to survive. 

Value-based pricing:

When the price is determined by the amount the buyer is willing to pay for the value of the product. Brands using this approach take into account the interests and needs of their customers.

What is the Buy Box and how does it work?

The Buy Box is the Amazon shopping box that appears on individual product pages and is the fastest and easiest way for users to make purchases on Amazon. It displays important details such as product features, price and, most importantly, who is selling it. Of course, this is a space that can only be occupied by one seller. So when others offer the same items as you, you’ll be competing for the buy box and Amazon will decide who is best suited for it through an algorithm.  

 How to obtain the Amazon Buy Box?

  • Best Landed price. This price includes shipping and taxes. 
  • Reduce cancellations by providing accurate descriptions.  While Amazon never said this, products sold via FBA always have the shortest delivery times.
  • Have positive ratings and reviews.

Paying attention to the Amazon Buy Box will help you increase sales. However, you need to do it wisely so that you don’t damage your interests. We advise you to maximize your strategic and effective chances by focusing on using 3rd party tools when possible.Tools like Netrivals are essential for doing price comparison methods on Amazon.

This technology will allow you to start selling on Amazon, streamline every step of the way, and make more accurate and truly personalized decisions.

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