Week of December[30th Nov - 6th Dec 2024]
Amazon Selling Secrets - Strategies That Work
Launch Pricing Strategy for Better Organic Ranking on Amazon
Why Pricing Matters?
There is a strong correlation between product pricing and organic ranking on Amazon. Setting the right pricing structure during a product launch can significantly boost organic rankings by improving conversion rates and building momentum early on.
How to Structure Your Launch Pricing
Weeks 1-9 Price Progression
Here’s the pricing format we follow for new product launches:
Week 1: 40% off target price
Week 2: 30% off target price
Week 3: 25% off target price
Week 4: 20% off target price
Week 5: 15% off target price
Weeks 6-8: Maintain 5-10% off target price
Week 9: Reach target price
Example:
If your target price is $50:
Start at $30 for Week 1.
Gradually increase to $35 in Week 2, then $38 in Week 3, and so on.
Maintain incremental increases to stabilize buy-box retention while growing organic rankings.
Key Considerations:
Invest Upfront: Buyers hesitate to pay competitive prices for new, review-less products. Offering initial discounts incentivizes them to take the risk, building trust and boosting conversions.
Limit Price Increases: After the first two weeks, keep weekly price increases below 5%. Amazon’s algorithm penalizes steep price hikes, which can impact your buy-box eligibility.
The Long-Term Benefits of a Launch Pricing Strategy
Better Organic Rankings
Cost-Effective Launch
Sustained Success
Holiday Pricing Strategy
No Discounts During Holidays: Increased holiday traffic means buyers are more focused on quality than discounts. A well-rated product (4+ stars) will sell regardless of lower pricing.
Increase Prices Strategically: Boost profitability during holidays by slightly raising prices instead of discounting. High demand will offset the price increase if the product is strong.
Want More Details?
For a complete walkthrough of this pricing strategy, check out our video guide: Click here to watch the video.
This strategy is an excellent example of how precise adjustments can lead to significant improvements in campaign performance. For more actionable tips like this, check out our Strategies That Work page here.
|| This Week's Amazon News/Updates
|| Blog Spotlight: Amazon FBA Pricing Strategy: A Guide for New Product Launches
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