Huge Pricing Mistake Beginner Booksellers Are Making on Amazon FBA
I have noticed a mistake I see a lot of booksellers making when they’re selling on Amazon FBA. I’ll give you an example. Let’s say you have a textbook that you found from Savers. Maybe you paid three dollars for it, and it’s selling on Amazon FBA for $130. Maybe there are seven FBA sellers, and the lowest price is $130 in very good condition.
So now you’re looking at your book. You’re getting ready to list it on Amazon. You’re assessing it. Maybe you see some wrinkles and a little bit of highlighting. Maybe there is a little mark on the back of the book. So you determine that you’re going to sell it as being in good condition.
How Should You Price This Book?
Well, I see a lot of sellers pricing their items incorrectly. In this example, the lowest seller is $130 in very good condition. Yours is in good condition. Let’s say the rank is 100,000. This book is selling quickly. You decide to price it at maybe $80 or $90. You’re undercutting the next-highest seller by $30 or $40. Maybe you feel that your book’s condition isn’t as good, and you don’t want to make the customer upset. You want to assure that you are creating a really good experience for the buyer.
Here’s the thing though. On Amazon, yes, if you’ve got a book that’s maybe acceptable or good, you’ve got to be competitive. So there’s nothing wrong with undercutting it a little bit—maybe 1 to 3 percent. But there’s really no difference, especially with higher-end textbooks, if you undercut by 3 percent or by 30 percent.
A Strong Market Is the Key
If someone is in the market for that book, then the lower price won’t matter as much. Let’s consider the factors. It has a good sales rank. People are looking for this book. There’s a market for it. The book has reviews. It’s in demand. It’s going to sell just as well. Do not sell a $130 book for $80; do not take a home run and turn it into a double. With a book like this textbook, you don’t have to undercut that much.
If your condition is only good as opposed to very good, then just drop it a couple dollars if you want. Now again, there are going to be people out there who say, “Never undercut.” Well, everyone has their own business model; you might be a small fish, or maybe you’re a large fish. We’re all going to have different theories and business models. Maybe you only have couple hundred books and want to keep your books moving. So, okay, you want to be competitive and drop the price maybe a dollar or two.
Don’t Go Overboard on the Undercutting
But in general, don’t undercut by 20 or 30 percent thinking that it’s going to be game changer for you. Because in general it’s not. You’re going to be shooting yourself in the foot by losing out on profits. Use Camelcamelcamel if you need help taking a look at a book’s price history.
Selling books, especially textbooks, on Amazon can net you a healthy profit. Don’t make rookie mistakes in pricing that will take money out of your pocket.
Please subscribe below to get automatic updates of my latest video blogs:
Thank you so much for your support, and if you have yet to leave a rating or review, please leave me an honest one on iTunes, YouTube or below on the blog. I appreciate it!
Podcast (new-podcast): Play in new window | Download