Should I raise my prices?
Should I raise my prices? There are a few factors to consider here.
The trade war - If imports become more expensive, then I would expect to see wholesale and distribution prices to increase, and/or available inventory to shrink [I really don’t don’t know what is going on with this, as I haven’t been following the news. About 1-1/2 years ago I decided that I had enough politics for a lifetime. The ignorant were happier than I was. So, I willfully became ignorant of politics.]
Cost of shipping FBM versus FBA fees - I removed much of my inventory from FBA, and added a shipping charge. However, Amazon customer seem to really like “free” shipping. Would it be better to just roll this shipping charge into the price offered? Or keep it as a separate line? (Sales in these items that were formerly FBA have fallen off dramatically.)
Cost of returns - I am leaning toward sending more stock for FBA, but the increase in number of returns on FBA sales make me think that a price increase is in order.
Sales tax risk - Though I collect sales tax for my home state, I may want to raise prices to cover the potential of being called upon to pay tax that was never collected from the buyer, or to pay for accounting/legal expense to defend against it.
Seller_VPTojhikJPGtl
This is a decision you need to make for your business…
Seller_AJ8SzzrXJpQN1
Price increases on items that can sustain them are a good thing. It all comes down to your competition. If you are in a price war with your competition, a price increase by you will mean no sales for you. If these are your items and you do not have any competition, go ahead and give yourself a raise.
Seller_dxNiJ3wL98iWT
Most prefer to sell at a loss and make up for it in volume
Seller_awYU0oH8skccg
There is no such thing as “Free Shipping”…Somebody pays for it…
Don’t worry about a Trade War…US doesn’t Export much to China and Their labor is so cheap they can absorb the costs… Tariffs are a tax we can use to pay bills and reduce the trade deficit…
I tried to be be Willfully Ignorant of Politics but it Did Work… I’m still a politics and economics junkie @10WallStreet
Seller_1NnkwgDxp19fr
Will all kinds of goods that are coming from China be affected by this so-called trade war or is it just for some spesific items?
Seller_3hIRLZLVYjQcO
I found offering Free Shipping helps to generate sales on Amazon.
I rolled my shipping costs into the sale price in order to recoup my costs.
Seller_jglZowc8rO988
2 of the manufacturers I deal with have both raised prices- one of which had been the same for over 15 years, the other since inception of the business also.
I suspect many more manufacturers will also be doing the same thing if they are sourcing components from over seas.
I see the costs eventually making its way to the buyers.
Seller_qYX4aDSyP5rcJ
This is a straightforward math question. Define your variable (inventory cost, fulfillment cost, etc.), determine what margin you want, set your price. If you haven’t done this math you’re not actually running a business, you’re gambling…
If sales are too slow your price may be too high. If sales are too fast your price may be too low.
Seller_MGDk6qQuyZlLm
The pricing answer depends on how price-sensitive and price-competitive your items are, not on macroeconomic conditions.
shipping:
Nothing is ever ‘free’ – it’s just included in the base price. But if ‘free shipping’ gets more sales, then roll it into the item cost. Keep in mind that you can’t deduct shipping costs if you offer ‘free shipping’
Sales Taxes:
If you sell on Amazon, they usually take care of sales taxes, and charge the buyers accordingly.
Seller_BZMIhRlSQIHN5
There are way too many sellers selling bellow cost I don’t see how they “make up” with volume as some one suggested. If you add seller’s fees and shipping (not counting the work involved and shipping supplies)
Also a lot of vendors from China offering free shipping as well! I don’t know how they can do it.
