Request to all FBA sellers reselling branded products.
Please don't decrease your product price to get buy box atleast stay at the price you are selling by doing so you provoke other sellers to do same and ultimately all sellers sell at lost.
You all know amazon is now charging VAT on fees, and also going to charge some tech fees per unit from 1st October. So we as sellers should also increase our listing prices to cope up the change. I know all people suffer of this but no one takes the stand. The best thing to do is to increase listing prices, never ever decrease your price.
16 replies
Seller_ZJhFeE3tNKzfh
So essentially, you're just asking for wide scale price collusion?
Seller_mS10UjVYuuGor
I understand the plea but that's not the way Amazon works.
If several sellers are offering the same product only the one with the buy box gets sales so the system is set up for sellers to fight it out. If FBA, other sellers are paying storage fees without getting sales so are on a loss anyway and at some point have to compete. Then there's repricing tools.
Even then that's based on a flawed assumption that buyers will always stay within Amazon to make their purchase. Bing has a relatively new feature that flags up when something you're looking at is cheaper elsewhere which I'm sure is/will be an option in Google.
In fairness it isn't Amazon charging VAT on fees, it's HMRC closing a loophole.
Seller_d8YGbIjNqwFxn
Everyone should price at the price they want to. Reducing the price to get the Buy Box is a valid pricing strategy. Your competitors may well be able to sell the product cheaper than you and still make a profit, if that is the case they may well settle for less products but more sales.
I do have competitors who price cheaper than me but I still get sales so pricing is not everything. Other factors such as delivery speed come into play when buyers decide who to buy from.
Also you should note that you are not allowed to ask your competitors to engage in any type of price fixing. This includes asking them not to compete with you or increase their prices.
I hate to say it but if you can't compete with your competitors then you need to look at whether Amazon is the right place for you.
Seller_ae51e0CJoHqCX
Winning the buy box is determined on the price and sales history etc. It is not completely price driven but if you are pretty equal amongst competitors you are likely to win the buy box by being a penny cheaper.
This ultimately turns it into a dutch auction and you cannot therefore determine the strategy of another company.
I am guessing there are a few sellers that gain advantage on price by not being VAT registered and undercut. This has put it more onto an even playing field so those vat registered now have the upperhand.
At this point, you now want to retain the advantage by simply putting a plea out to maintain the price so you can keep the advanage. Not a chance. First and foremost if there was an agreement you would be breaking the law as it is price fixing.
Seller_T9qNRaWjUhLfS
So does everyone have sell stuff at the price that only you are happy with and you alone decide???
Seller_9fA2L82vl2c6V
I understand your points. I've sold very competitive items on FBA and simply sold at a loss to clear stock when pricing drops pennies daily. However, I've found just waiting it out is a completely valid strategy. Leave your pricing. Turn off your re-pricer.
You'll make less sales but often still make sales at your preferred price. Plus, your competitors will eventually sell out and you'll be back in the buy box. Obviously this depends on the product, I no longer touch these competitive items and I make good sales within my niche.
Seller_iGWb1Mzt8ZCnz
if you are in business and setting prices on what your competition is , baring in mind the simple fact they may pay a lot less than you , you wont be in business long
