Price Point Strategy for Amazon
Cheaper Isn’t Better
First off, you have to understand that a cheaper price isn’t always better, it does not help your royalty intake either.
- Let me show you why – “Comparative Pricing” If Seller A is selling a shirt for $10.99 to make a .03 cent royalty and let’s say Seller B is selling the exact same shirt for $16.99 for a $5.13 royalty; which seller will be happy when they get their earnings statement at the end of the month? Seller A sold 25 Shirts for a profit of .75 cents
Seller B sold 25 Shirts for a profit of $128.00
- Having a lower price may even make the customer question your low price. “Comparative pricing” isn’t always as reliable as sellers think, and may affect customers’ perception of your product.
- Note: The less competition I have, the higher my price will be for the shirt. “Supply and Demand.”
- When using this “comparative price” tactic, the customer may choose the more expensive shirt because it’s perceived as “Less Risky,” “Higher Value,” or guess what? They may NOT buy either one now. (According to consumer research)
The Power of 9’s Price Tactic $99.99 vs. $100.00
- I normally end my prices with a “9” depending on my strategy. According to research from Journal Quantitative
Marketing and Economics, prices that end in “9” were able to outsell lower prices of the same product.
- Take a look, if you take the same item and price it at $25 at Store A. and $29 at Store B. the $29 item will outsell the $25 item. (Til wait here while you fix your prices)
The Power of 9 tactic can also convince your customer to buy 2 or more shirts (Pricing psychology).
Leveling the Playing Field Tactic (Advanced)
- I use this tactic in niches that already have 4 or more pages of shirts with cheap and expensive prices. (Saturated Market)
- An Amazon page will lists 48 shirts per page, make sure to click sort by “Relevance” at the top right of the page.
- Now this part takes a minute. Til take out my calculator and start adding all 48 prices together. Here comes the magic of Leveling the Playing Field Tactic… Let’s say the final total is $856.37, Divide your total by 48. $856.37 / 48 = $17.84
- So for this tactic we’re going to implement the power of “9” and make our listing price $17.89. If you do this properly and have a great design, your shirt should outsell the competition.
This tactic is based off consumer psychology;
there MUST be “higher” expensive prices and
cheaper “lower” prices for this tactic to work.
Most consumers are clueless about the
concept of “value,” says Professor William
Poundstone, author of Priceless: The Myth of
I could go on and on about my various price
tactics. (Using these price tactics will get you
started and on the path to success. I will share
more on price tactics in the advanced book we
have coming out at a later date.
The next Step: Brand. Title, and Key Features “Keywords”
Bonus Tip: When you create your design, upload an image that has 1000 PPI/DPI or higher. Your design will also look clean & crisp when the customer zooms in on your shirt to get a close up.
Other Tips for Amazon :
Brand Awareness :
- For the brand name, I will make a new brand for each niche utilizing keywords significant to that niche.
- Stick to 3-6 words including the word “Shirts”
- Have your Power Keywords to the left as much possible (I’ll show you why later)
- Brand: Funny Skateboard Shirts. (“Less Is More”)
- The brand is a great place to use keywords that buyers will ACTUALLY search for. Using just 3-6 words will attract buyer’s eyes increasing CTR (click through rate)
- Should Be Unique and Easy to read
- Title: Evolution of Skateboarding T Shirt
- The goal is to put keywords in the title too. Notice that I’ve used “Shirts, T Shirt, Skateboard, and Skateboarding” so far just between the brand and the title. This is great for keyword density as long as you’re not keyword stuffing.
- Currently, it is necessary to use different synonyms of words to get found for such keywords.
“Mate, define synonym please.”
A word having the same or nearly the same meaning as another in the language, as happy, joyful, elated. A dictionary of synonyms and antonyms (or opposites), such as Thesaurus.com, is called a thesaurus.
What I use to find Basic keywords:
- Synonyms For Boss http://www.synonym.com/synonyms/boss
- “Like a Boss” phrase keywords https://app.kwfinder.com/dashboard?keyword=like+boss&language id=0 &location id=0
- My first secret keyword tool of choice https://adwords.google.com/KeywordPlanner
– Start incorporating the keywords from your power list. The phrase “tee shirt” will be used in this bullet point. (Answer WHAT they do, WHO it’s for, WHY,
- Answer WHERE they will wear this shirt. Is this a gift? Incorporate “t-shirt” into your sentence, wrapping up your optimized listing using the rest of your power keywords in sentence form. (Answer WHERE & WHAT)
- To answer who? What? When? Where? Why? I enjoy using this cool tool http://answerthepublic.com/ iust type in a keyword
This is your chance to attract your customer. Who’s your target audience? (Skateboarders, Grandmas, Teachers, Ninjas)
Bonus Tip: Making your title & brand name easy to read may in fact increase your sales. This improves the customer experience and Amazon will reward you for it.
Key Product Features (Not Optional)
Your power keywords should be put into sentence form, enhancing customer experience, and you guessed it, MORE SALES!
- If you want the edge on the competition; this section is NOT OPTIONAL!
Rule #2: Use effective keywords in sentence form. No keyword stuffing. Your listing must be easy to read – “Less is more.” •
Bonus Tip: Proper grammar goes a long way with the amazon search algorithm from my experience. I usually paste my bullet points into grammarly.com (or use the chrome extension) to check. You will have better results sounding like a human and using proper punctuation