Price War


#1

Hello Sellers,
I have items that are selling at a fair price. Similar to Buy Box price, I usually match the Buy Box price. For examples, $25.00 (same shipping price for all sellers). But then, after I listed it for $25.00. Other sellers with the exact same product, price their under my price (most often times 1 penny cheaper than me), in this case $24.75. So I try to price under their, now, I have to price it under $24.75. So I price it $24.50. Often most sellers and some times just me and the other (2 sellers) keeps on lower our prices to compete on the top listing with the lowest price. We have been having this price war for a while and our products originally listed for $25.00, now down to 9.00 and continue to go lower. If we both keep fighting over price, I will not make any money, and may lose money at the end. How do you (sellers) handle this type of situation? What would you do? I have been having this price war for many many of my products.


#2

It takes two to have a price war!!!


#3

Sellers who use repricing software will continue to lower their prices, often by a penny.

You can’t win in those situations.

Keep your prices the same and stop trying to compete with those sellers.


#4

Don’t sell merchandise which is common as dirt and think you will make any profit on it.

If you are not losing money at $9 and were selling it for $25 you were living in a dream world.

There is always someone who will try to be the lowest priced seller, right up until the time everyone is losing money.

These are items which sellers count on making enough on their way down to justify their effort. And some of these folks don’t even have that thought.


#5

But if I keep my price the same, I won’t have any sales and my inventory will pile up.


#6

If you have a decent performance & sales record, that will generate sales for you.

It doesn’t matter if the other seller is a penny cheaper.


#7

You sound like a casual seller that does not do this for a living. As far as these items go, it will be a race to the bottom every time. It all comes down to who is willing to make the least. I hope you did not quit your day job to do this.


#8

Thank you. You gave a great answer to me = “It all comes down to who is willing to make the least.”


#9

Many of us purposely do not want to be the lowest priced seller because we learned over time that we do not have to be the lowest priced seller to get sales. My items are priced higher than the lowest price seller and I get enough sales that causes me to re-order the item from my supplier when I run low on inventory.

When I purchase stuff on Amazon, I’m willing to pay a slightly higher price if I know the seller has good Customer Service skills and has an easy return policy and does not make customers take silly pictures to prove something is defective or to return an item. If a slightly higher priced seller has better feedback that the lowest priced seller, that also plays a big part in who I buy from.

If you are not here to make a quick buck and you have patience, you’ll do okay selling on Amazon.


#10

The way I see it, all you will be doing is competing in a race to the bottom regarding prices.


#11

Did you know that you are probably still in the buybox rotation even if you are a penny higher than the other guy? And if your price is equal with the other guy. Try holding your ground for a few days and see for yourself. You don’t have to engage in price wars.


#12

Getting into a price war is pointless.

One thing I’ve learned in this business is that patience is key…

Let your competitors sell their inventory at a loss. Once they run out you will sell.

We see these sellers popping up all the time. They start selling something at what you know is a loss.

They usually last a month or two before they close shop.

We are FBA on the same sku as Amazon for a few products. Amazon sucks at keeping stuff in stock. If they run out for a few days we can literally offload hundreds of units in that window at a nice profit.

The race to the bottom is a race to bankruptcy. Let Amazon and all the “price war” sellers lose money. We’re in this business to make money, not to offload inventory for a loss or break-even.


#13

I always match a competitors price - no matter if I lose money on a particular sale. NO ONE will EVER outbid me for any reason! This is the reason why I’m so successful on Amazon.


#14

We are the highest price on what we sell. These low price sellers come and go.


#15

Thank you.


#16

It all started by them with penny lower than me. Then, pennies, then $1, then $2, then $3 lower.


#17

Thank you Charlie1983, good answer.


#18

That’s a business, like it or not…


#19

There have been several times over the years when I bought the lowest priced competing item and then sold it for a profit. As long as the spread made it worthwhile. After I bought it my item sold.
A race to the bottom is not worth doing.


#20

Thank you for answering my question. I understand you match a competitors price, but you willing to sell at a lost at times? If you sell at a lost, then how do you make money?