Recently, Sellerspirit saw a lot of Amazon sellers has some question about "Lower Priced Items to Consider", today this article is to share some ideas on it.
1. "Lower Priced Items to Consider"
I do not know if sellers have seen this sign on the Amazon listings, which appears at the top of the listing details page and below which, there are several products which are similar but lower in price. As shown below:
2. So Is this sign good or bad for the seller? Why did it appear?
Let's share a opinion from an seller on Amazon forum:
In other words, As the e-commerce market is now fiercely competitive, the prices of commodities on the Amazon have tended to fall in recent years. Wal-Mart and other commercial giants are also targeting the e-commerce market, aiming to establish a market with price advantages. In order to be able to guarantee the platform's profit, revenue and customer loyalty, Amazon introduced this feature in the belief that certain product prices on the platform were not competitive.
In short, because the seller is not competitive, Amazon recommends "Lower Priced Items to Consider" to customers in order to prevent customers from losing. Because whether customers bought your goods or bought the "Lower Priced Items to Consider" goods, as long as the transaction is done on Amazon.com on it, the result is good for Amazon.
①. The traffic is divided; it is no doubt that a similar listing with a favorable price appears on the top of seller's listing is not a good thing for any sellers, the traffic division is an inevitable result.
②. Cause a price war; Because it is due to the price is uncompetive, so many sellers have to adjust price, and experienced seller must know the price war, there is no bottom line ah !
4. How does Amazon judge the competiveness of your product price?
Do not know if the careful sellers find a function on the Amazon called "Tell Us About a Lower Price" ; This function appears in the Product Information section of listing, this feature is to let buyers feedback the same product with a lower selling price they have seen at other stores or website.
Amazon officials said it will deliver these feedbacks received through this feature to the sales staff.
This is most likely the source for Amazon's price-competitiveness judgment.
5. "Lower Priced Items to Consider" suggestions:
① Amazon recommended smilar low-cost products but not the same product, as long as sellers carefully optimize the listing, highlighting the product features and advantages, I believe seller can ensure the retention rate of customers to some extent,
②. Price market research must be done before upload the listing, set a competitive price for their products.
③ .Do not blindly cut prices when listing appears the "Lower Priced Items to Consider" , many sellers react that after reduce the price, although the conversion and visitors become more, but the profit is too low. so when the profit can not be guaranteed, it is recommended that sellers turn to optimize the supply chain.