New FBA Seller vs Amazon
Hi guys, I got a quick question.
So I’m a new FBA Seller, yet to make a sale. Listings been up 2 days. One of my products that I bought 12 units of has Amazon as one of the sellers and one regular seller fulfilled offer.
I bought these units knowing full-well that I would be going up against Amazon - I just wanted to see how it would work and if it’d be possible to sell.
So Amazon originally had the buy box, with their listing being priced at £17.99, the seller fulfilled was listed at £14.99.
I entered my listing at £16.99. Amazon has been adjusting their price to match mine. I get the buy box for 10 mins and then Amazon will match me and take it back.
I’ve been gradually lowering my price bit by bit and am now at £11.99, with the buy box (this will most likely change by the time I create this topic!).
If Amazon are to keep matching my price, will they bottom out at a certain price? Is there a human involved at all in checking the prices? Because I’m thinking if I can drive them low enough I could just buy their listings at a cheaper rate than I get my units at wholesale, but it makes me think - theoretically if Amazon wanted to couldn’t they detect my lower price, buy all my units and then resell them at their price? Or is this not possible?
My break even price will be £8.47. What do you guys think the best action is for a new FBA seller wanting to sell on the same listing as Amazon? Should I just put in the removal order now, or can this be turned around?
Many thanks.
0 replies
Seller_DROodOAYHftnc
Cannot answer all your questions, but Amazon will be using pricing software that will continually lower their price to be the lowest.
This is what has happened in the book category where you will see many prices spiralled down to just 1p because several sellers use software to always be the lowest. Get just 2 sellers doing the same and the prices just keep being reduced - you’re best to match or be just a little over but give better service.
They may have set a lowest price that they will go to - who knows.
Seller_W6IbwSPxN8QUm
They’ll have a bottom price, yes, but they won’t need to use it as you’ll do that for them and they’ll just scoop off the top of yours via commission and profit on post.
When you run out of stock, they’ll bump their prices back up and its happy days as you won’t bother restocking.
What you are trying to do is far from a sound strategy - it is like trying to beat Amazon at a game of chess whereby they own the board aswell as the peices.
Seller_EJIX7rqDNQJi2
It depends on the product and how much Amazon purchased it for.
I am getting very good deals from my suppliers and Amazon is unable to match my price, so I have the BuyBox, even FBM.
I would advise you to set a price at which you are profitable, without watching and matching Amazon’s price. There will be someone, who will for some reason buy from you instead from them.
Seller_qZO3ZCjoBXEeL
If it is a swift moving ASIN, you could keep your prices high until Amazon run out of stock, then sell yours at higher margin.
Running to the bottom of the price has risks and Amazon can and will drive other sellers off a listing if it can.
Buying stock from Amazon to sell yourself is a risk. If you receive an authenticity or IP complaint Amazon most likely will not accept themselves as an authorised supplier.
