Get fee discounts by lowering your price


#1

Hi All,
So I just go an offer if i lower my price to what amazon wants me to i will get a 0.5% points off referral fee (we are offering you limited-time referral fee discounts on sales of the ASINs listed ) My price is at $67.87 and they want me to bring it to $67.46. Is it worth it? Does it help me sale more?

First time getting this offer so I want to make sure if I match I don’t lose more then gain. The match offer price difference is only .41 cents so i dont see it as a bad deal.

What do you guys think?

Thanks!!!

Jason


#2

At your selling price it looks like worth considering. Whatever offers we get are always priced so low that it wouldn’t even cover the procurement price, forget about the shipping to FBA, storage FBA fee …


#3

I assume you are the only seller or you are already the lowest seller. They are probably wanting you to match the offer from Walmart, eBay or some other non-Amazon site.

Usually we pass on these because they are not favorable for our numbers (like a 2% fee reduction for a 15% price drop).
But for you:
Current: $67.87
15% Fee: $10.19
Net: $57.68

Proposed: $67.47
14.5% Fee: $9.79
Net: $57.68

In this instance you would be making the same amount of money. So the choice is yours. That $.41 It might make the difference to somebody, but for that small difference, I’d say most people wouldn’t care.


#4

90% of the fee reduction offers are so ridiculous that they’re not worth considering. Every once in a while however we do receive an offer where it’s close to a wash as far as our net. In those cases it always makes sense to lower the price as it can only result in more sales. If the fee reduction covers the reduction in price then I’d say it’s a no brainer.


#5

well for 41 cents it seems worth the risk.
.5% off the fee isnt very much though - 33.5 cents to be exact if it is an 8% fee item

Any discount offers I have gotten generally include Amazon asking us to sell it far below wholesale cost.


closed #6