How to determine the right price for your products

Olga van Borren
November 29, 2019

Determining the right prices for your products on marketplaces such as, Amazon and other marketplaces is very important for the volume of your sales. It's not always about whether you ask the lowest price, but whether your price will make it to the buy-box and then get the best place on the marketplace to sell your products. recently published a message about a change in its pricing policy. The marketplace strives to offer the most attractive price to their customers and therefore sets some rules to the prices that sellers on the platform apply:

  1. Equal prices
    Do you sell the same product in your own webshop and on Then the selling price on shouldn't be higher than the prices in your own webshop. Shipping costs are not taken into account.
  2. Relevant market price
    Make sure that the prices on your products are not too steep. does not want to create a negative price perception among consumers, by applying prices that far exceed the prices of the competitor(s).
  3. Logical second hand prices
    The second-hand items on offer must have a lower price than the new items in the buy-box.
    In addition to the relevant market price, will now also look at the historical platform price. In order to determine the historical platform price, will look at two parts:
    The last known price of a similar item in the buy-box.

    The most popular price of the last ninety days.

    Next, the two parts with the highest will be used. Depending on the price you can add an amount or percentage to get to the maximum price you can perform. If you price a product too high, you risk a low conversion. By using a lower price, customers will be more likely to make a purchase and you will generate a higher conversion on the product. You also run the risk that products with a too high price will not be shown on the shopping platform.

    When determining the right price, you also look at the market objective and the quality of the product. If you strive to be an exclusive brand, you will more quickly take into account the price sensitivity of the product among consumers. The consumer can react in different ways to changes in the price of a product. When the price of a pot of salt is increased by 50%, the reaction will be less strong than when the price of a far journey is increased by 50%. Some products are therefore more price-sensitive than other goods. If you strive to become a price-fighter, you will pay special attention to the price changes at the competitor in order to always be able to undercut this price with your products.

    A good solution of EffectConnect to always have the right price (which is not always the lowest rate!) is our Repricer. The Repricer Tool adjusts your product prices based on the rules you set and the prices your competitors ask for the product you offer. Read more about what the Repricer can do for you!

    Want to know what EffectConnect can do for you? Try us for 30 days for free!

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