There are many different strategies you can implement when pricing your Merch by Amazon products. Below I will outline just a few examples and why they can be effective.
How is Merch by Amazon royalties Structured?
The royalties are based on the difference between the sale price and the cost price amazon is charging for each item. See the image below.
Amazon offers fairly competitive royalties across their product range, not the best in the POD market but considering the amount of traffic they have and the sales can produce for you it’s more than worth it.
Source: https://merch.amazon.com/resource/201858580
Number 1: Getting out of Tier 10 – 25
When you’re in the lower tiers your main goal is to tier up so you can have room to upload more designs. The fastest way is to drop your prices as low as possible, the goal here is not to make a profit but to get to the next level as quick as possible. If your designs are good and the price is cheap then you will get past tier 25 quiet quickly.
Number 2: Pricing to rank.
This works best for the higher tier 100+. The idea here is to price your design as low as possible to gain traction in the market and build your BSR up along with your rankings. Once the design is ranking then it’s time to up the price and start earning commissions.
Number 3: Market Average Pricing
The idea here is to be competitive, gain rankings & earn commissions at the same time. The strategy here is to find the average price for similar designs in that market and price your design $1 under to start gaining traction in the market.
When you have 100’s or even 1000’s of design it can be a long process to implement pricing strategies. That’s where Merch Factor Pro comes in, with Merch factor PRO you can download a list of your entire catalog make changes and then let Merch Factor PRO make the changes for you on complete autopilot. Check out Merch Factor PRO today with a FREE 3 day trial. Get it here
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