How Amazon pricing strategy can make or break your business

On the long-term impacts of Amazon pricing strategy decisions on your business.

The large impact of small pricing decisions

The way I look at Amazon pricing strategy is this: 

Pricing decisions compound. 

One small tweak to your pricing strategy can add up to thousands of dollars at the end of the year. There is no such thing as a small decision when it comes to the formula you use to price (and reprice).

Small tweaks to pricing strategy have compounding impacts on your revenue

One small adjustment to pricing strategy that makes you an extra $50 a month, will mean thousands of dollars over your Amazon selling career.

Ten such tweaks can have a massive impact on your business.

Pricing decisions compound.

Let’s say you choose a pricing tactic that reduces your profits by 2% vs another, better formula. That 2% compounds over days, weeks, months, and years. That one decision you made in a single moment becomes very expensive in the long run.

Conversely, let’s say you realize your error, and alter your strategy slightly. For the same amount of work, this new strategy allows you to extract an extra 5% profit on average from your inventory. That 5% compounds over days, weeks, months, and years. That one adjustment you made generates ongoing revenue for your business. One decision translated into a 5% pay raise.

Why there is no such thing as a small pricing decision

There are dozens of small tweaks and strategies in this book. Each one of them can make you a small amount of money on a single sale.

Distributed across thousands of items, the extra profits are significant.

Compounded over time, they are massive.

And every strategy combined, across thousands of sales, and compounded over time – has an impact that is immeasurable.

Absorb and apply pricing strategy concepts accordingly.

-Peter Valley