As we approach some of the biggest online shopping days of the year, a few notes on repricing your Fulfillment by
Repricing Fulfillment by
This sounds boring. Why pricing?
There are a ton of articles out in the last month, telling you to double down on your sourcing and “stock up for Q4.” I’m not going to do that.
I’m really not a fan of this. For those practicing the “single sourcing” model (assessing items & purchasing them individually, vs. wholesale sourcing), I can’t see the sense in launching a tornado-style
If there is inventory to be had, you should be out there getting your hands on it always – no matter the season. It’s no different than saying: “It’s November, so run outside and pick up bags of money in the street at twice the normal rate”. You can spend money all year round, so you should be out there getting getting it all year round.
Naturally, if you’re selling new inventory on
Most of my sourcing is done with a different approach. As such, I do very little myself to prepare my
A note on what exactly are people buying on
If you think the answer is “everything,” you’re (mostly) wrong.
While it’s true that everything sees a spike in
I don’t have an exact figure, but by far the majority of my FBA inventory is used. And as such, I’m very aware that I will not be experiencing an
Think about it: Have you ever purchased a used book on
The exceptions are out of print collectible items for which there is either no “new” option, or when the new offers are priced outrageously high on
You guessed it.
The day before cyber-Monday, when sales really start to surge, I go through my entire FBA inventory and reprice the new items. Only the new items. I ignore the rest.
If you have a ton of new inventory that hasn’t moved for you up to this point, there’s a good chance it’s going to sell on
- The item sells.
- You get the most money you can for it.
Remember a major reason your Fulfillment by
There is a frantic, unreasonable demand for
The first is that people need the guarantee an item will arrive when it’s supposed to, even if they order on
The second force at work is that people order presents on
Don’t feel bad about capitalizing on people’s desperation. Just price accordingly and reap the rewards.
All of this means you can command – and receive – exorbitant prices for your FBA offers right now. Far and above that of other sellers. And far and above what you can receive the rest of the year.
But you can’t receive prices on
The intuitive formula for pricing “slightly unreasonably high”
“Slightly unreasonably high” is a price point arrived at intuitively, vs. via a hard formula. It’s above what you’d price your FBA offer at the rest of the year, as you attempt to hit the highest point someone might pay when they really need the benefits of FBA. Such as when there’s a Christmas present riding on it. Sales Rank is the largest factor in knowing how much higher to price. Like I said, this is not a science. I just know the price when I see it after years of trial-and-error.
(Of course, you will never want to go over
One way you learn this type of pricing – and all pricing – is observation and experimentation. Specifically, you want to set your FBA prices when you ship inventory in to
Now, you don’t have time to experiment in the four weeks before Christmas. But it is my belief that any missed sales from pricing too high are more than offset by the increased revenue from your highly-priced offers that do sell.
If you’re not a believer in this formula
…then I have two things to tell you.
First is: Try it.
The second is: You can always lower a price later. But you can’t go back and retrieve lost revenue from a customer later when you realize I’m right.
The important points, revisited
- Identify all new FBA items in your inventory.
- Reprice them “slightly unreasonably high.”