I hope you’re all doing well. I wanted to bring up a concern that has been significantly affecting my business on Amazon, and I’m sure many of you might be experiencing the same issue. As you know, holding inventory beyond 90 days can incur additional fees, which I am keen to avoid.
However, in the current scenario, if I lower my prices to compete, I will end up with negative profits, which is not a viable solution. Because of this situation, I am not going to make any profit. I am doing mostly RA.
I don’t understand why sellers are tanking the prices, especially FBA sellers. I am trying to maintain price stability, but they are not. Some of them are even pricing under the FOP.
What is your recommendation? I would love to hear your thoughts.
Always consider the 90 days average BuyBox price before investing in a product. Ask yourself if you’ll make any profit selling at that price. Sometimes a products price overstretches for a short time before it starts to fall down to its average.
Also, check if the current price fall is because of rising seller count. In that case, look at their stock levels, and if you think some will go out of stock soon, wait for it and the price will start to rise up. Otherwise just follow the BuyBox price and sellout and don’t invest in such products again.
This is the Amazon game. It’s all about doing volume, selling as much as possible for profit, and some at breakeven or below. Every single seller is going to sell some of their stock at breakeven or below. Do not make the mistake of keeping the stock for too long as it will negatively affect your cash flow. Money needs to be recycled as fast as possible.
Do not worry about tanking because, unfortunately, it’s the norm. People can have different reasons for tanking, so there’s nothing we can do about it.
Try diversifying inventory to reduce competition, optimizing your listings, using promotions, and considering private labeling. Also, negotiate better terms with suppliers. Stay resilient!
Are you selling to make a profit or not? It’s not only about me. The BSR is good, and sales per month will be consistent for everyone if the price is stable. But reducing the price from $145 to $47? There’s no chance to wait and see when they will be out of stock so that you can finally sell.
Again, you’re assuming you are paying what they are paying. Some sellers are fine making 10% and selling as fast as possible. And pay cheaper than you.
Sorry, but I can’t agree with you. It means some of them don’t know how the strategy works. We are learning something new from each other every day. This is a normal question I posted, and if you don’t know how to answer, please don’t respond. I am also new to this business and I am not setting any astronomical prices. I always compare with other sellers. When I purchased, there were 10 sellers, and now there are 30-35. It’s Nike and Adidas products. My price was $123, and I purchased at $59.99. Anyway, don’t tank the price if you’re going to do it.
Yeah, I mean, again, not everyone is paying the same price that you are. I sell quite a bit of Nike and Adidas products. Like I said, not everyone operates off the same parameters you do. Some people are happy to make a 10% margin, some aren’t. Just because the price of a product was $123 doesn’t mean it will remain that way. You don’t have to agree with me; it’s just the way it is. If you’re doing RA, you’re most likely paying much more than people doing OA for Nike.
Every business operates with tax exemption; you’re not special in that regard. The gentleman tried to educate you on prices and ROI, but you’re stubborn about it. You’re doing RA, buying at the retail price of $59.99. Another seller doing OA will have your price (or lower) plus probably a 10%-25% off coupon, cashback on Rakuten, and probably cashback on their credit card. You’re assuming that you have the best possible price, which is not the case. If they are selling at a price where you’re not making a profit, it indicates that they are probably making some profit, meaning they get it for cheaper.
Use Keepa for price history, BSR history, and the number of sellers. You could also use the 90-day average buy box metric to help you make your buying decisions.
I don’t think people check Keepa, though. I had a great selling product where I bought for $1. I sold it at $24.99, as did other sellers; we all made sales and profit. Then somebody comes in and tanks the price to $14.99. They can’t get it much cheaper than $1. If they looked at the history for months, they would have seen the price was $24.99. Why undercut by $10? Even if they got the item for free, they weren’t making a good profit. There are instances when people are just being dumb and screwing other sellers.
I didn’t say that I am special! And not everybody has tax exemption. It depends on the sellers. I am saying that even using tax exemption doesn’t make sense when prices get lower. If I am doing OA, I use Rakuten or TopCashback, but mostly I do RA like many other sellers who live in the US.
Before purchasing, I checked Keepa. Everything looked good. The BSR was low. There were only 10 FBA sellers, but now there are 30-35 sellers. The max price was $147, and I set my price at $123, but now it’s $47, even lower than what I paid for it.
If you are not making a profit (or making negative profits in your words), change your buying strategy. Stop worrying about what other sellers are doing and focus on you only.
Change the items or type of items you are selling to something more profitable.
I know that this is easier said than done but that’s the only way if you are in a sector that is so competitive.
Remember that if you sell at a loss or low profits, Amazon are still happy because they make money from you, whatever price you sell at. So, focus on yourself and do better.