My Merch By Amazon Pricing Strategy

Are you interested in knowing more about the pricing strategy I used to ride the wave of increase in sales on my 5th month? If so you’ve come to the right place. You can click on the video link or read on below to learn more.

Most of the standard t-shirts come around at $12.87 per shirt. For premium t-shirts, it’s around the mark of $14.87. It definitely goes up for long sleeves sweaters, shirts and for other variations too. I try to find prices that make me no profits but no losses either.

Why do I do that?  To get my shirts noticed and bought as soon as possible.

My Strategy To Reach Tier 500

When I was at tier 10, 25 or tier 100, I was purely focusing on increasing my chances of selling t-shirts. My main objective was to get to the higher ranks – reach tier 500 or above as soon as I could.

To do that, I figured customers would want to see my pretty cool designs at such low prices so that right then and there, they can instantly start buying.

The Goal

Simply put, my aim was to get the lowest best selling ranking (BSR) number possible. BSR basically represents how much sales you are making in a day. The lower the number, the better. Amazon rewards those who have the best selling shirts by letting them appear more in the search results. So the lower the rank your t-shirt has, the more visible it is to customers out there.  My initial goal was to get a BSR number under 50,000 which is a good indicator that my shirts are selling well.

How And When Do I Price Increase

As soon as I get a sale, I increase the price by $1. If I make a sale at $12.87, I increase it to $13.87. When I make a sale at $13.87, I increase it to $14.87. More or less, you get the point.

I continue with this approach until I reach a limit and stop making sales. By then, I know what my pricing strategy’s sweet spot is. The sweet spot is when I get to make the most sale at the highest possible price. I adjust my pricing to reflect what the sweet spot is and let it be for a period of time.

With this strategy alone, I’ve reached the Tier 500 level, made as much as 270 organic sales, and earned up to $700 profit without any external advertising.

The Cons Of Using This Strategy

Using the strategy made me close more sales and move through the tiers as quickly as possible. I wasn’t earning any profits though.

Like I said, I was pricing my shirts really low and every time I made a sale I slowly increased the price. This also meant that my royalties at the start, during the first 4 months, didn’t have any significant increase.

As you can see below, my earnings in the first 4 months, were all pretty low.

May 2018 Estimated Earnings
May 2018 Estimated Earnings

Despite this, the strategy was proven effective in increasing my rank, enabling me to reach Tier 500 and earn a considerable amount in my 5th month. It was a quite a long-term investment, but all the efforts paid off by the 5th month.

Alternative Pricing Strategies

I realized after sharing this strategy with my patrons and with various Facebook groups, that there are alternative methods that can be used to avoid having minimal to zero profits in the first few months.

Start High Versus Low

One alternative is to start high versus low and adjust the pricing as needed. In the earlier example, rather than starting at $12.87, start at $19.99. You may not make as much in sales but you get a higher royalty (roughly $5 to $6) in every sale you make. Over a period of time, if you notice you are not making much in sales, then adjust the pricing to a lower amount. You limit the risks using this approach while guaranteeing higher royalty.

Average Pricing

Instead of starting at $12.87 or $19.99, price at $14.99. The price is low enough to potentially get the attention of the buyers but not high enough to turn them off. While most shirts are listed at $18.99 or $19.99 when they see your shirt at $14.99 they’ll be thinking ‘oh I found a bargain here’ and get the shirt. I’m also inclined to be earning as much as $2 for each sale using this method.

That wraps up the Amazon Merch pricing strategy I used and plan on using in the upcoming months. If ever I come across a new and comparatively better process, I’ll definitely let you know.

What pricing strategy do you use on Merch by Amazon? Do you use the same as mine or do you use a completely different strategy? Do let me know in the comments section below.

If you’d like to know more about how I started and learn from my mistakes, download my Amazon Merch Getting Started guide here.

One Comment

  1. beauty

    This actually answered my problem, thanks!

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