I want to give some thoughts on selling this time of year. I see a lot of people that are a little off with how this all works. I really hope this can be helpful to people and help everyone have a more profitable year.
Q. This item is readily available at my Walmart, how can it be so expensive on amazon?
A. American is a big country, and inventory levels are greatly variable region to region. Right now in the area I live, you can’t find a single pie face. I have made phone calls and everyone is out of stock. But people are saying that their Walmart has pallets of them. That means nothing to me, unless I want to hop in my car and drive 1000’s of miles to buy a board game. This is true also for amazon customers. They will often pay more for something, to not have to go out to buy it. Also, there are many people in this country that live very rural. If their Walmart is out of pie face, they may have to drive hours to the next Walmart to buy it, which makes paying 40 dollars on amazon appealing.
Q. If it’s not selling fast enough, should I lower prices?
A. Probably not. Read “the buy box bible” and you will learn a lot about this. America is a big country, and the buy box does not just take price in to account. They also take geographic location and rate of sales in to account. So lower your price will do nothing but cause a price war and make you lose money. If you want to really learn about the buy box, look into “Poisson distribution”
Q. No, seriously, it’s been 3 days and it’s still not sold, lower price?
A. December is a long month, and amazon will be selling for Christmas delivery until the 24th, just hold a little bit longer.
Q. Someone jumped on my listing and lower the price too much and I can’t make any money, should I match them?
A. Never, when someone does that, it is often best to just let them sell out, with any luck this burst of sales will lower the rank and when they sell out, you will have a higher priced and better ranking product on your hands. Double win. Items are selling so fast right now that rank means very little. I just had an item with 50 FBA sellers become active. It was ranked around 10K in toys, and it sold out in under 2 hours. If someone tried to low ball it, I would just let them lose their money and wait it out.
Q. it’s really close to Christmas/it is Christmas and an item hasn’t sold, should I tank the price?
A. absolutely not! Christmas is not the only driving factor in the sales this time of year. Many people get year end bonuses, and maybe that goes to gifts for the kids, but some of it will also go to buying themselves luxuries they didn’t get for Christmas. Also, gift cards are hugely popular gifts, so they will have to be spent. People also will shortly after be buying things for new years, like exercise equipment, stop smoking products, yoga mats, exercise shoes. My January last year was better than my December.
Stay strong sellers. and hold on to that inventory! Christmas is nearly 4 weeks away.