10 Amazon Pricing Strategies to Outshine the Competition


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Amazon is a giant in the field of e-commerce, and its pricing strategy is one of the keys to its success. It became a retail giant not just because of the size of its inventory and the number of customers. It’s also because of Amazon pricing strategy analysis. The company has built a reputation for offering low prices on everything from books to batteries.

To keep up with the Amazon low price strategy sellers need to conduct an Amazon pricing strategy analysis. 


Amazon’s pricing strategy is designed to maximize revenue by matching supply with demand. They do this by keeping track of how many units of each product are sold at different prices. When sales increase around a certain product, Amazon will raise the price on that item so that it doesn’t sell out too quickly. This allows them to make more money since they can charge more for products that are in high demand. However, if the price goes up too much, then customers will stop buying it altogether (which means less revenue).

How to make an Amazon pricing strategy analysis?

Amazon pricing analysis is a process of analyzing the pricing of products on Amazon. It can be done manually or automatically with the help of software.

When you conduct an Amazon product pricing strategy analysis, you are trying to find out how much money you can make from selling your product. You will need to look at other sellers’ prices, see how much they charge for shipping costs and consider whether there are any discounts available for Prime members. In some cases, you may only want to sell your product in certain areas or countries where it would be most popular and profitable.

Why Do You Need To Conduct Amazon Pricing Analysis?

The main reason why you need to conduct an Amazon pricing strategy analysis is that it helps sellers make better decisions about what prices they should charge for their products on Amazon Marketplace (or any other marketplace). This can help them increase sales while reducing costs at the same time!

Amazon collects data from several sources, including customer reviews, sales volume data, supply chain information, and competitor pricing strategies, to conduct Amazon pricing analysis. They then use this information to create algorithms that help them set prices for specific products or categories. For example, suppose customers prefer low prices over high-quality products. In that case, Amazon will try to offer lower prices than competitors while maintaining high-quality standards to not lose customers who want higher-quality goods.

Amazon Pricing strategies

Amazon is a great place to sell your products. However, the competition is fierce, and the number of sellers is growing every day. To ensure that your products stand out from the crowd, you need a solid Amazon pricing strategy analysis.

Here is the 10 best and most unique Amazon pricing strategy analysis that will help you boost sales:

1. The magic of price points

It may seem obvious, but it’s worth remembering: the right price point is critical to your success on Amazon. It’s about how you present those prices to your customers. A price point is the lowest price that you’re willing to sell an item for. For example, if you want to sell a $100 product for $50 or less, your price point would be $50. This will help you attract more customers who are looking for something cheap but still allow you to make some profit from selling it.

2. Price anchoring to get more sales

Price anchoring is when a seller creates a price point around which they want to sell their product or service. This can be done by creating a high anchor (a high price point) or a low anchor (a low price point).

Creating a high anchor makes your product seem like a bargain, even if it isn’t.

For example, if you’re selling an item that costs $100, but you set the starting bid at $200, then people will see your product as being priced lower than it really is. This can lead them to bid higher than they normally would have and drive up sales for you!

On the other hand, if you create a low anchor, then people will think that your product is more expensive than the reality.

You can create a price anchor by pricing strategy analysis of your competitors. 

3. Price ending in 9 and 99 for a higher perceived value

According to research done by HubSpot, shoppers perceive those numbers as higher than any other number ending (like 50). This means that if someone sees a price at the end of $29 instead of $28, they’ll perceive it as more expensive—even if they’re actually saving money!

This strategy works particularly well when combined with another trick: pricing items with round numbers like $9.99 or $19.99 rather than $10 or $20. The latter two options are perceived as less expensive

4. Baiting the hook with a low price point and then raising it later in your product listing

This strategy is called “baiting the hook.” You want to make sure that customers are lured in by your product’s initial price and then enticed by its higher price point. For example, if you’re selling a book on Amazon, you might start with a $10 price point and then increase it to $15 after they’ve already made their purchase! This strategy works best when you’re selling something that people have been searching for but haven’t been able to find at an affordable price point.

This Amazon pricing strategy analysis is a great way to get people to buy since they see that they’re getting a deal. The only caveat is that you must be sure you can follow through on the promise of lower prices later in the listing. People will stop buying from you if you don’t keep your word.

5. Price matching guarantees

Price matching guarantees are a great way to increase sales by up to 20%. They give customers peace of mind knowing that if they find a lower price somewhere else, Amazon will match it and refund them the difference. This technique allows you to offer customers a guarantee on the price of your product and then match the price of competing products on Amazon. Doing this can ensure that your customer knows they’re getting the best deal possible. This strategy is especially effective for large retailers who want to keep their customers happy and increase their chances of being seen as a trusted brand by shoppers everywhere.

6. Give a limited quantity discount.

This strategy is commonly used by sellers who have been selling their product for a long time and have already established a good reputation with their customers (who trust them enough to know that they won’t run out of products).

Limited quantity discounts are also effective for new sellers who are trying to get their products off the ground. If you’re not sure how many people would buy your product if it were available, this strategy will help you figure out exactly how much demand there is for what you’re selling.

7. Create a video ad for your product

Creating a video for your product on Amazon allows you to showcase your product in a way that traditional text ads cannot. It allows customers to see what your product looks like and interact with it in a way that is more natural than just reading about it on a page. You can use this opportunity to give them an experience with your product that helps them understand how much better it is than other options available on Amazon.

8.  Offer a money-back guarantee

If you’re selling a product with lots of competition, offering a money-back guarantee is one of the best ways to attract customers. If someone buys one of your items and doesn’t like it for any reason, you’ll be able to get them to give feedback on why they didn’t like it so that you can improve your product next time around. If you have a money-back guarantee, customers can feel confident in their purchases and will be more likely to buy from your store!

Note that Money back guarantees can be tricky because they can attract scammers. If you offer one, make sure you have a clear policy and process for handling returns.

9.  Offer discounts

Offering discounts is one of the most effective ways to get more sales on Amazon. If your product is priced higher than similar products on the site, you could consider lowering its price so that it’s more competitive. This is especially useful if you’re trying to get a high ranking in search results or if you want to make sure that your product gets noticed by shoppers who don’t have time to read through all of the details about each item. You can also offer free shipping on orders over a certain amount or with other promotions like free gift-wrapping or expedited shipping at an additional cost.

10. Using the bestseller lists to help you price your products

One thing that can help you determine whether or not your price is competitive is looking at the bestseller lists on Amazon.

Bestseller lists are dynamic—they frequently change according to what’s selling well at any given time. The lists keep track of which products are selling well across several categories and at different price points so that shoppers can find what they’re looking for quickly and easily. They also help sellers understand what their competition charges for similar products or services so they can price their offerings appropriately.

This will give you a good idea of what other sellers are charging for similar products, so you know what range to fall within if you want your product to be competitive in terms of pricing. If a product is priced higher than its competitors but still sells well, then there’s probably room for an even higher price point.


Pricing strategies for Amazon sellers are an ever-evolving thing. Those seeking to be successful on Amazon will want to keep up with the latest tactics and tools that can help them stand out from the crowd. Since Amazon is constantly changing and evolving as well, there are new ways to optimize your pricing strategy every day.

So, take a moment to familiarize yourself with the various Amazon pricing strategies stated above. Consider which would work best for you and your product. Prices aren’t set in stone, so make sure to find a strategy that makes your company the most money.


Which pricing strategy does Amazon use?

Amazon does not use a single pricing strategy. It uses low pricing, offers discounts, creates video ads, works on bestsellers, etc. It uses any of them in conjunction, so make a difference.

How do you analyze pricing strategies?

When you conduct an Amazon product pricing strategy analysis, you are trying to find out how much money you can make from selling your product. You will need to look at other sellers’ prices, see how much they charge for shipping costs, and consider whether there are any discounts available for Prime members. In some cases, you may only want to sell your product in certain areas or countries where it would be most popular and profitable.

What are the challenges in pricing strategy?

There are several challenges in Amazon pricing strategy analysis:

You need accurate customer data, which can be hard to find without a large sample size.

You need accurate data about how much they’re willing to pay for your product, which can be hard to find without running many experiments with different prices and seeing what works best.

You need accurate data about how much it costs you to make each unit of your product. If this number isn’t correct, then you can’t set any prices that will help sustain your business.

Picture of Zeeshan Riaz <br> <span class="designation">Chief Operating Officer</span>
Zeeshan Riaz
Chief Operating Officer

With education and experience in IT. Law and E-commerce industry, I have successfully helped more than 250 E-commerce businesses worldwide to reduce their operational cost with cutting edge eCommerce Marketing Services. I do manage a team of more than 250 people team which includes Amazon, eBay, Shopify, website development, SEO and SMM experts.

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