Pricing is one of the most critical aspects of Amazon selling. Even with the best products, poor pricing strategies can hurt sales and reduce profitability. Many sellers fall into common pricing traps that either leave money on the table or make them uncompetitive.
This article outlines the five biggest pricing mistakes Amazon sellers make—and how to fix them.
Top 5 Pricing Mistakes (And How to Avoid Them)
Undercutting Competitors Too Aggressively
❌ Mistake: Many sellers try to win sales by dropping prices too low, sacrificing profit margins.
✅ Solution: Instead of a race to the bottom, optimize pricing based on BuyBox trends and historical sales data.
Ignoring the BuyBox Price Threshold
❌ Mistake: Some sellers price too low or too high without considering BuyBox eligibility.
✅ Solution: Track the BuyBox price range and stay within competitive thresholds.
Using Static Pricing Instead of Dynamic Adjustments
❌ Mistake: Setting a fixed price without adapting to market demand, competitor stock, and seasonal trends.
✅ Solution: Use automated repricing tools to dynamically adjust pricing based on real-time market data.
Not Factoring in Amazon Fees Correctly
❌ Mistake: Sellers often overlook FBA fees, referral fees, and storage costs, leading to lower-than-expected profits.
✅ Solution: Use a profit calculator to ensure accurate ROI estimates before setting a price.
Failing to Adjust Pricing Based on Sales Velocity
❌ Mistake: Keeping the same price even when demand spikes or dips.
✅ Solution: Adjust prices strategically based on seasonal demand, stock levels, and competitor movement.
A strong pricing strategy is essential for Amazon success. By avoiding common pricing mistakes and leveraging automated tools, sellers can maximize both sales volume and profit margins.
OptiSage provides AI-driven pricing insights, BuyBox tracking, and automated repricing tools to help sellers stay competitive.