Optimizing Prices For Profit, Key Inventory Tips & More

Optimizing Prices For Profit, Key Inventory Tips & More.jpg
Presenting our latest Amazon seller recap. Here, we provide updates, news and insights to keep you informed of key developments and ahead of your competition. Don't miss out - sign up here to be notified of these updates.

Selling on Amazon Europe: The Definitive Guide For US Sellers

From importing products to managing VAT, in this guest post, I looked at the key issues for US sellers wanting to sell on Amazon EU - http://www.webretailer.com/lean-commerce/selling-on-amazon-europe/.

Optimize Your Prices For Profit

In the last newsletter, I talked about the importance of getting your pricing right. To help you find the best price for each product, I recommend Profit Peak by Splitly. It’s an automated solution that tests different prices and helps sellers optimize their pricing for maximum profit!

You can also use Splitly to test other variables in your listings, e.g. which title will generate most traffic and sales for my listing?

How To Deal With Low Inventory

There is a debate amongst Amazon Sellers as to how you should deal with low inventory on a hot selling item - this assumes that you are projected to run out of stock based on your current sales velocity, before your new units will arrive to Amazon’s warehouse. The 2 common strategies to deal with this are as follows:

  1. Increase your price to reduce sales volume - the logic of this approach is that you will avoid a stock-out and earn more profit from each sale. The downside of this tends to be a reduction in your organic ranking and sales, which can be difficult to regain in competitive niches.
  2. Keep your pricing the same and let your stock run out - the logic is that you’ll regain your high organic ranking and sales once your stock is replenished. However, you will be out of stock due to this approach and lose out on sales and profit during this time - some sellers also believe that Amazon reduces the organic ranking of sellers who run out of stock.

The team at Sellics did an excellent case study to address this key issue. The insight and breakdown here is top notch and I’m sure all sellers can learn a lot from reading through it.

Planning ahead for Chinese New Year

“The Factory will close from Feb 8, 2018 - Feb 25, 2018 for Chinese New Year holiday” - this is a message I got from a supplier last week.

If you’re sourcing products in China, make sure to account for this in your inventory planning. A good start is to check what dates your suppliers will be closed for Chinese New Year. You should also keep in mind that production times tend to be longer in the run up to this period.

So, for example, if your typical production time is 20 days, you can expect anywhere from 5 to 15 days longer in production time. For reference, you can find all public holidays in China here - https://www.travelchinaguide.com/essential/public-holiday.htm.

Top Listing Tips For Amazon EU Sellers

I recently wrote a guest post on how to get the most out of your Amazon EU listings. Check it out here - Top 5 Listing Tips For Amazon Europe Sellers.

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Grow and succeed on Amazon

Tips and insights to help you grow your Amazon business in US & Europe

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Grow and succeed on Amazon

Tips and insights to help you grow your Amazon business in US & Europe

We respect your privacy.