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How to Set up the Price for Your Amazon Products to Increase Profitability!

Whether it is eCommerce or any other business, everyone has the only ultimate goal to generate as many sales as possible. Specifically, in the eCommerce industry, various factors influence a customer to buy your product, such as product reviews, images, descriptions, and pricing. Pricing is a crucial factor affecting the customer’s shopping decisions. That is why to reach the buy box section on Amazon; it is necessary to implement a robust pricing strategy.

A solid pricing strategy doesn’t mean that the price of your products needs to be too low or too high. The primary motive behind this is to implement pricing strategies that can attract your customers and add value to your business. In the enormous world of eCommerce, where customers have thousands of product choices, the price can prove to be a deal-breaker for you. According to a recent survey, only a few percent of customers do their research before buying a product online. A significant number of customers do the pricing search by visiting various eCommerce platforms. They usually visit the other platforms to compare the price of the product they want to buy. Pricing is one of the essential aspects of etraKY’S SCRAP model, and you can click here to know more about it in detail.

In this particular blog, we have mentioned some essential factors that can help you implement a decent pricing strategy for your Amazon products.


Spectacular Ways to Set Up the Price for Your Amazon Products


Before setting up a price for your Amazon products, you must go through several calculations to help you implement an intelligent pricing strategy.


Calculate all the Costs and Fees

Before deciding on your products’ selling price, you must find your overall cost. The actual cost of a product involves a lot of factors that need to be considered at the time of setting up a selling price of the product. To calculate total costs, you need to consider the following:

  • In order to determine the total manufacturing cost of the product, you need to assess the cost of the raw materials used to manufacture the product, such as clothes, plastic, fiber, wood, metals, etc.
  • Find out the actual cost you spend on storing the products in a warehouse. You must also calculate this price if you are an Amazon seller using the FBA(Fulfillment by Amazon) service.
  • Figure out the shipping charges you need to pay to move your products from the manufacturers to the warehouse and then deliver them to the customers.
  • Evaluate the price of the ad campaigns you run to promote your products.
  • Calculate the return fee by analyzing all the profit margins that you have lost because of the return, including the 20% return charge that Amazon keeps a commission on returned products.

Hence, before fixing the actual selling price of the product, you must figure out all these charges involved in selling your product on Amazon. All these calculations can help you set up an accurate profit margin on every product sold. Apart from that, you can also get along with a product price analysis software such as etraKY BS. It can provide you with the necessary information regarding your competitor’s price and then help you to set a great price for your product.


Get to Know Your Customers

Knowing your customers appropriately can also help you set a reasonable price for your Amazon products. To increase your profitability, it is essential to read the mind of your customers and know what they consider before buying any product on Amazon. To understand them, you can go through the review and rating section. Here you can find helpful information such as complaints about the products and the other preferences of the customers. Most customers prefer to buy products at a lower price, so you need to apply some tactics in such a scenario. Suppose if your product costs rs200, you can set it for rs199. It can make them think that they are buying a product from the range between 100-200. Analyzing the customers’ minds can also help you set up the price of your upcoming products.


Analyze the Pricing Strategy of Your Competitors

The eCommerce marketplaces are pretty competitive when it comes to pricing. Remember, you are not the only one in the market; many others are selling similar products as you. To make your Amazon business more profitable than ever, you must analyze your competitors’ pricing strategies. Search for similar products on Amazon and find your competitors. It can be a crucial process, especially if you are a new seller or brand in the industry. Find out your competitors’ prices and then set a reasonable price for your products.

However, if there are customers who prefer to buy low price products, then the customers who prefer to buy a quality product at a decent price also exists. So, keeping all these factors in mind, you can successfully set up an original price for your product. In this regard, you can also take the help of competitor price tracking software such as etraKY BS. It can provide you the visibility of your competitors from various channels in a single panel. It can help you analyze your competitors’ pricing strategies more effectively.


Take the Help of the Automated Pricing Tool

If you sell products on Amazon, you must know that you must win the buy box section to increase your sales robustly. The majority of customers want to buy a product at a lower price. So there are more chances that the lowest product price of any category may win the buy box. Now the problem is how will you get to know the lowest price of any product? At Amazon, you can take advantage of the automated pricing tool that can automatically set up a reasonable price for your product depending on the changes in prices of your competitors.

It can help you be competitive and win the buy box. You can use this advanced service of Amazon before setting up a decent price for your products. This tool can save you time every time you spend evaluating your competitors’ prices.


Conclusion

In such a way, you can also implement the strategies mentioned above to set up an accurate price for your Amazon products. Setting up decent product pricing may take time, but spending the required time on this aspect of your business is highly recommended. Pricing can be one of the reasons if you are missing out on obtaining a higher profit margin. All your efforts can be unsuccessful if you cannot set an advanced pricing strategy for all your products. That is why it is essential to gain customer insights, competitors’ pricing strategies, and the calculator of the overall cost of a product.

All these factors can help you fix your product’s selling price. If you are still ignoring this essential aspect of the eCommerce business, it can be the reason for your business’s failure. So before anything else you must focus on setting up dynamic pricing for your Amazon products. At last, we would like to suggest that instead of taking the service of Amazon’s automated pricing tool, you should go for etraKY BS. It can help you in many ways, from analyzing your competitor’s pricing to helping in maintaining price hygiene across the channels.

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Incredible Ways for Brands to Sell Clothes on Amazon!


Clothes/apparel used to be a necessity for living, and it still is, but more than a necessity, it has now become a style statement. The demand for clothing will never end, which is why it is one of the safest product categories you can use to sell on Amazon or any other eCommerce platform. If you are interested in getting into Amazon’s clothing market, then it can be very lucrative and competitive at the same time. Thousands of brands and sellers on this platform are into selling clothes only.

Individually Amazon has sold a massive amount of clothes in the past two years. It is targeted to upsurge the apparel sales by more than 45 % by the end of this year. You can also become a part of this profit as a brand or a seller. If you look at it from the customers’ point of view, more than 50% of Indian shoppers are now buying clothes on Amazon. All these figures indicate that selling clothes on Amazon is indeed a beneficial deal. If you want to capitalize on Amazon’s better performance on the clothing side but don’t know where to start, stay with us and continue reading this blog piece. This blog tells you what you need to know to Sell clothes on Amazon.

 

Spectacular Ways to Sell Clothes on Amazon

 

  • Create Your Account on Amazon

Take this primary step and create your account on Amazon. You will require a separate account from your Amazon buyer’s account for this. This process requires your GST and PAN information, along with your active bank account details. Once you set up your business account, you will require Amazon’s approval to list the clothes. It can take a few days to get their response after submitting the necessary information. You can use this time to do the market research and understand the demand of the customers. This practice can make you choose the suitable clothing to sell on Amazon.

 

  • Organize Your Product Listing

Right after Amazon’s approval, you need to do the product listings. It will be your product page that customers will click on to make a purchase. You need to include the following information while doing listings.

  • Add product labels and barcodes
  • Fix the price of your product
  • Provide the shipping options
  • Add high-resolution images of products
  • Apply elaborative and product descriptions
  • Add the size and color options

To sell on Amazon, your listing should always be incredible. You should always add high-resolution images to help the customer analyze the product closely. While selling clothes, your listing should include the size chart, color, fabric of the apparel, etc. Apart from these, you can also inform the customers about the apparel type or on which occasion they can wear them, whether it comes into casual wear or formal wear. To enhance the listing quality of your product, you can take advantage of any listing quality analytics tool such as etraKY BS.

 

  • Select a Business Model

While choosing to sell clothes on Amazon, selecting a business model is a crucial decision to make. At Amazon, you can select from four businesses to choose one for your online business establishment.

Private Label: You can develop your apparel brand and operate it as a first-party seller on the platform. However, this business model requires a good investment, and you have to build your brand awareness.

Retail Arbitrage: You need to buy apparel from an approved manufacturer at a discounted rate in this particular business model. You can resale those clothes on Amazon under your private label. It requires a decent budget to get started, along with decent pricing that you fix for those products.

Handmade: In this business model, you can sell one type of apparel instead of multiple clothing options. For example, you can choose a unique print, fabric, and design to make your handmade apparel. In the fashion industry, it is also known as “Artisan”. At Amazon, you will be charged a flat percentage instead of monthly seller or brand fees.

Wholesale: This business model requires you to buy clothes in bulk and sell them on Amazon via FBA (Fulfillment by Amazon) facility. In this specific model, you may require to get Amazon’s approval for each brand you want to offer your customer.

 

  • Get Along with Amazon Fulfillment Process

Now when you are ready to sell your apparel, the real question in this way is how will customers get their orders? To ease this issue, you can take the help of the Amazon FBA service. It means that Amazon handles your inventory, packaging, shipping, customer service, and returns as well. However, you need to pay for these services, but it’s worth paying as it minimizes half of your headaches.

You don’t need to track your inventory as the FBA service will take care of it, and you can use this time to improve your brand. It can also provide access to additional selling features like Amazon Prime eligibility. In such a way, you can deliver your orders on time without any hustle. This is the best way to impress your customers by offering them faster delivery and upsurging your sales accordingly.

 

  • Segregate the Group of Your Clothing

To become a renowned clothing brand now or later, you must take the help of ads. Initiating brand awareness and attracting customers to your clothing range is essential. For that, it is imperative to segregate the group of clothes on the basis of their style, type, size, color, and fabric. It can become more accessible for customers to choose one specific clothes.

If you’re selling various types of clothing, from men’s wear to kids’ wear, you need to make a specific segment for the groups. For example, women’s tops should always be seen in the women’s western wear segment with the specific segment “Women Top.”


Following Types of Clothes, you can Sell on Amazon


Amazon has a vast sub-category of clothing for women, men, and kids. Here we are mentioning all the sub-categories, and from these, you can choose the type of apparel to sell on Amazon

 

Women’s Wear

  • All Western Wear
  • Shirt, Tops, and Tees
  • Jeans and Jeggings
  • Dresses
  • All Ethnic Wear
  • Salwar Suits
  • Kurtas
  • Sarees
  • Lingerie
  • Sleep and Loungewear
  • Sportswear

Mens’ Wear

  • T-shirts and Polo
  • Shirts
  • Trousers
  • Jeans
  • Innerwear
  • Sportswear
  • Sleep and Loungewear
  • Ethnic wear
  • Ties and Socks
  • Suits and Blazers
  • Jackets and Coats.

Kids Wear

Girls’ All clothing

  • Tops and Tees
  • Dresses
  • Jeans
  • Pants
  • Clothing sets
  • Baby Girl

Boys All Clothing

  • T-shirts
  • Jeans
  • Pants
  • Clothing Sets
  • Baby Boy

Conclusion


Amazon has become one of the biggest clothing markets in the world. If we talk about the Indian market, in India as well, customers are now preferring to shop for clothes from this massive marketplace. Millions of Indian shoppers come aboard to shop various apparel from Amazon, and in this way, sellers and brands cloud also earn significant profits. However, this eCommerce platform is highly competitive. To become successful, you need to represent your brand professionally. It will be best if you primarily focus on the product’s reviews part as well. In this regard, you can use etraKY BS for agile review management. Apart from that, the speedy delivery is also required for this business. For that, you can get along with Amazon’s FBA service.

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