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Pricing product (on Amazon) for maximum profit

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LPPC

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Mar 6, 2016
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Hi people,

I am selling this product on Amazon with little competition. I am trying to figure out at what price to sell it for. The idea was to measure every week how much I sell for X price and then decide which pricing gives the most profit.

The problem I have is that even if I don't change the price of the product, the sales volume differs from week to week. How should I go about testing/finding out what price gives the most profit? Maybe even measing per month could give different sales with the same price..

Thanks in advance!
 

SeanLewis

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Keep increasing by a little every few days, once you see sales go down drop the price back down a bit. Only do this onve yourproduct is well established tho
 

amp0193

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Hi people,

I am selling this product on Amazon with little competition. I am trying to figure out at what price to sell it for. The idea was to measure every week how much I sell for X price and then decide which pricing gives the most profit.

The problem I have is that even if I don't change the price of the product, the sales volume differs from week to week. How should I go about testing/finding out what price gives the most profit? Maybe even measing per month could give different sales with the same price..

Thanks in advance!


When I was selling a lot on Amazon, I used Split.ly to do this for me. They run the test until their is a statistically significant outcome either way. Check it out here: Amazon AB Testing & Split Testing – Optimize Your Product Listings | Splitly
 

MaxKhalus

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If your product is differentiated, go from underpricing to overpricing (compared to the average offer). If nobody knows about the product. A lower price to get sales to get visibility .... to up the price and get profitable sales later.
 

LPPC

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When I was selling a lot on Amazon, I used Split.ly to do this for me. They run the test until their is a statistically significant outcome either way. Check it out here: Amazon AB Testing & Split Testing – Optimize Your Product Listings | Splitly
Thanks a lot. I actually said Amazon because it is the most known platform, but the platform I am selling on is not Amazon but very similar. So this software would not work. Could you maybe tell me how to recognize a statistically relevant outcome?
Split test it...
Thank you. See my response to amp0193. Maybe you can help me with this?

As far as the rest of the comments, thank you for the effort but as I said, sales vary even on a week by week basis with the same pricing.
 

amp0193

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Thanks a lot. I actually said Amazon because it is the most known platform, but the platform I am selling on is not Amazon but very similar. So this software would not work. Could you maybe tell me how to recognize a statistically relevant outcome?


I'm not a statistics guy, that's something you're going to have to google.

Basically though... you're going to need to split test on a consistent time basis. Price 1 for a week, price 2 for a week, price 1 for a week, price 2 for a week.

And do this until you have enough data that the sale fluctuations are irrelevant, and you can reasonably determine which price is better. Depending on volume, this might take a month, or if sales are slow it could take 4-5 months.
 

Kid

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Thanks a lot. I actually said Amazon because it is the most known platform, but the platform I am selling on is not Amazon but very similar. So this software would not work. Could you maybe tell me how to recognize a statistically relevant outcome?
Maybe this will help you
 

LPPC

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Mar 6, 2016
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Basically though... you're going to need to split test on a consistent time basis. Price 1 for a week, price 2 for a week, price 1 for a week, price 2 for a week.

Maybe this will help you

Thanks a lot guys, I know what to do for now!
 

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