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Dinosaurs go extinct: How to transition from merchant-fulfilled to FBA (Fulfillment by Amazon)

By Peter Valley 2 Comments

Following up on the last post on pricing penny books for $9.99 via Fulfillment by Amazon, here is an observation about a major cause of FBA (Fulfillment by Amazon)-failure for new sellers:

Dinosaurs go extinct: How to transition from merchant-fulfilled to FBA (Fulfillment by Amazon) Amazon pricing strategy

Transitioning from merchant-fulfilled to FBA (Fulfillment by Amazon) without understanding you are playing by a completely new set of rules.

Throw out the old playbook. Get rid of it. Dispose of every buying and pricing practice. All of it.

Two rules (of many) that all Amazon FBA (Fulfillment by Amazon) sellers need to understand:

1. You have all new customers.

Almost no one that bought from you when you sold merchant fulfilled will buy from you now. You’re pricing too high. Say goodbye.

2. You are no longer competing based on price.

You are no longer desperately fighting for the top spot in the listings. You no longer want the top spot. For a well-ranked item, that’s a ghetto for bargain-basement sellers only. You’re better than that.

When all FBA (Fulfillment by Amazon) sellers understand these two (new) rules, they are much further along the road to having a successful business.

 

 

Also, claim your free book:
Dinosaurs go extinct: How to transition from merchant-fulfilled to FBA (Fulfillment by Amazon) Amazon pricing strategy

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Filed Under: Amazon pricing strategy

Comments

  1. Kim says

    at

    This post confused me very much. Point number one, especially. It seems that everything I’ve read about FBA (Fulfillment by Amazon) tells me I can price items higher because Amazon Prime members don’t mind paying more for the item due to their free shipping.

    Regarding point number two, I’ve also read, over and over again that items that are shipped via FBA (Fulfillment by Amazon) get higher ranking spots in the listings and they made that sound desirable.

    ????

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  2. Peter says

    at

    Right on both counts. That was the point of this post: Both of your points are exactly what people miss when transitioning to FBA (Fulfillment by Amazon).

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