Hello one and all, new sellers, experienced sellers, and everyone in between! The holiday season is upon us (I hope you all got your inventory in on time)!
Today I want to discuss one of our biggest pet peeves in the Amazon Selling business: price dropping. If you are a fan of profits, this should be a pet peeve of yours as well.
Price dropping is when one seller on the listing decides to drop the price of his or her product to gain control of the buy box. This might sound like a good idea, but in reality, this doesn't really ever work the way you think it will.
The problem is, if you have other qualified sellers who are paying attention (which all do) their immediate reaction to a price drop will almost always be to match the price. And, those who are not paying attention probably have the price matching tool on. So, not only do you not get what you set out to achieve (control of the buy box), but you will also cause a cascade of price drops that will not only make you less profit but will eventually get to the point where nobody can make any money from the product listing itself.
It is almost ALWAYS a better idea to be patient, stay put, and share the buy box.
Another example that I hear a lot is, "what if there are three of us on the listing, and the other two drop their price. Should I match?" In all honesty, it depends completely on how much product they have and what their history is. If they have a whole bunch of inventory and don't look like they will sell out for a long time, or they have a history of restocking with regularity, I might consider it. However, if they are going to sell out, let them sell out. After this happens, you are in complete control of the buy box with the original price.
Overall, it doesn't make much sense at all to price drop your inventory. You will get just as many sales if you stay at the original price. As we said above, stay patient, don't panic, and...
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