I’m currently selling a product at £4.70, leaving me with just a £0.48 profit, while the FBM seller has priced it at £2.49 and holds the Buy Box. My question is, in this situation, will both the Buy Box and the majority of sales likely go to the FBM seller? I know my product has demand, but I’m not getting any sales.
Does this mean I’ll need to lower my price even further?
Also, when sourcing new products, should I be checking both FBA and FBM competitors’ prices? If that’s the case, it seems very challenging to make a profit, as FBM sellers often set the lowest prices.
If you’re doing FBA, there’s no need to compete with FBM. If you’re unsure who’s getting the sales (FBM or FBA), go to the ‘Data Offers’ section to see who’s selling. These numbers aren’t 100% accurate but can give you a good idea.
In this situation, it’s likely that the FBM seller will continue to hold the Buy Box and capture the majority of sales because of their significantly lower price, especially if all other factors (such as delivery speed and seller rating) are comparable. Lowering your price might help you win the Buy Box, but doing so may eliminate your already slim profit margin. When sourcing new products, it’s essential to consider both FBA and FBM competitors’ prices since Amazon often prioritizes the lowest price for the Buy Box, especially with comparable fulfillment and seller metrics. To compete profitably, focus on sourcing products where FBA’s convenience and speed can justify a slightly higher price, or consider items where FBM sellers are less competitive. Additionally, explore products with less direct competition or ones where FBA can add unique value, allowing you to maintain a profitable price point without directly competing with FBM sellers.