Skip McGrath and his wife, Karen, began selling on eBay in 1997 shortly after closing a small antiques shop they operated in New York. In 2006, Skip began selling on Amazon, and last year he was named as one of Amazon’s top 10 sellers for the holiday season.
Today, Skip and Karen list over 900 products on Amazon, alongside their eBay business, which is still going strong. In today’s post, Skip offers three top tips for Amazon sellers to consider before deciding to lower their prices.
1. Check Competitive Sellers’ Feedback Score
I have several products where I experience stiff pricing competition from other sellers. However, when I took time out to check their sellers’ accounts, I noticed their feedback scores were often as low as 90%. Whereas, my feedback rating is 100%.
Amazon usually puts the lowest price seller in the Buy Box, but not if their account metrics are poor.
Related reading: The Amazon Buy Box Guide
My process is this—I go through my listings and wherever I see these sellers (with poor metrics) undercutting me, I raise my price. The result, in almost every case, I retain the Buy Box whilst increasing my profit margin.
Therefore, I advise you to do the same. Start by checking all the competitive sellers and check their feedback scores. If they are much lower than yours (note, yours should be at least 98% or higher), then go ahead and raise your price.
After, waiting for a 24-hour period, go back and have a look at who’s occupying the Buy Box. In my experience, over 90% of the time, you’ll be there—even with your higher price!