Re: Never posted to Amazon, Question Quote:
Originally Posted by Taking The Micky alexkov, customers on all marketplaces are price driven, basically yankee if you not in the top 3 resellers you will have very little chance of selling an item and if you are a new seller with no feedback you have to be the cheapest or you won't sell anything. I say the Top 3 as if there is only a few cents difference in price most customers will opt for the customer with the highest feedback. | I know what you mean, however, if you look at the statistics of Amazon, you maybe surprised. For example, all FBA sellers have on average 30 to 40% higher profit margins than non FBA sellers. That of course doesn't directly translate into such big percentage difference in price, as usually even 10% increase in price may give you 40% higher profit margin, depending on products cost and etc. Now take that into an account, and look at the data showing that more than 50% of ALL SALES on Amazon go to FBA sellers, and there is a setting on the Buyer account that allows you to ONLY search products sold on Prime (by FBA sellers). So basically what that means is that about half of Amazon Buyers make the conscious decision to purchase all their items from Amazon at a higher price than what they can if they didn't check the box that shows them only Prime FBA Sellers. What the prime ensures is simple returns and immediate delivery. So more than half of Amazon buyers seem to choose that over cheaper price, and I am not talking about a cent or two here, I'm talking about substantially higher prices.
My personal experience supports the data as well. I have been selling for many years, and it's surprising to see how many times I am selling a product at up to 40-50% higher price than my competitors, when their offerings are visible. It's not even that I have the box, very often I do not have the box, as another seller has a substantially lower price than me. So imagine a Buyer going out of their way to consciously click past the box, to the right where there are other sellers, and choosing me as a seller, paying $20-$30 higher price for the product simply because of my faster shipping/better feedback.
There are numerous articles and books written on the subject, one of which is called Retail Arbitrage and has very interesting info in it, look it up. There are no short cuts with Amazon, if you are a new Seller, you won't make a ton of money until you are an older established account. So whether you undercut everyone else and price yourself to where you can hardly sustain your business or stick to profitable prices, you are looking at 6 months or more of growing/establishing period..
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