Avoid the Amazon Price War and Still Win the Amazon Buy Box!
The importance of price in winning the Amazon Buy Box share is known to us quite well now. But, blindly emphasizing on pricing is not the only solution to win the Buy Box. Instead of distressing so much about lowering your prices, vreprice suggests avoiding the price war or the race to the bottom, as a formula to beat the competition.
Frequently racing to the bottom never really benefits you. Let’s have a look at the reasons.
It affects You, the Competitor & the Buyer!
Slashing prices aggressively is definitely damaging you and your competitor, but at the same time, it also jeopardizes your chances of converting a potential buyer into a customer. The buyer would come back to you expecting similar prices all the time. Times, when you are not able to offer products at their expected level of pricing, the buyers know to move on and get it from your competitor, because hey – aren’t they offering the same price?
And not to forget, it’s human nature to equate ‘cheap prices’ with ‘cheap products/services’. You don’t want to be labelled as one of them and lose out on a potential customer because of the blind price wars.
It will be difficult for you to sustain in the long run!
If you’re considering a repricing software to lower your prices, it’s not a bad idea. But doing it drastically and blindly might land you in a soup in the long run. There are instances when sellers want to move out a slow moving item or get the buyers pick up an expensive product. So, they price the product very low and start moving it out or sell it as a pair at a lower/discounted rate and sell out twice the product inventory.
It’s very much like having a craving for candies. It tastes and feels great to have it occasionally. But when you start having it every day, you start losing the appeal because it doesn’t feel special anymore. Don’t forget that even your health will need a break from it.
Dropping prices is similar to the candy craving. Everyone will enjoy the sporadically lowered price. But, if you keep doing it every now and then, you’re doing nothing but getting yourself out of the business radically.
It almost never helps and works out in the long-run for anyone.