This is a repost of a previous Tiny Marketing Lab Newsletter. If you haven’t been receiving my email newsletter, you can subscribe here.
Hello,
A few weeks ago, I sent you an email “Not All Amazon Accounts Are Created Equal.”
It talked about why some Amazon accounts get tons of sales while others barely get any.
Here’s the quick scoop on why some people aren’t making any sales:
- They haven’t verified their Amazon account, so all their products show as “Unavailable.”
- No Buy Box = No Sales.
Take a moment to check your Amazon account. Are you in one of these two groups? If so, fix it.
The Buy Box is super important.
If your products don’t have the Buy Box, people can’t see the price right away. They have to click “See All Buying Options,” but most folks won’t bother.
Now, let’s talk about our main topic today — Pricing Matters.
Last week, I checked the stats on PODtomatic and found one user made 16 orders in their first month. They uploaded 7,800 products and already made 16 sales.
This surprised me because most new users don’t make many sales right away.
Usually, it takes a while for Amazon to show your new products in search results.
Most users get only 1 or 2 orders in their first month, and their sales grow slowly as they have more products.
So, 16 orders in the first month?
That’s impressive.
I dug into the stats on PODtomatic to see what separates the big sellers from the rest.
I looked at users with the most products from PODtomatic and compared their sales.
On the left, you see the total number of products uploaded by each user. On the right, you see their total sales.
These are the stats for 30 users with around 34,000 to 44,000 products from PODtomatic.
Their sales range from 4 to 82. That’s a big difference.
Most users sold around 25-30 products.
The big question is: Why do some users have over 50 sales while others struggle to hit 10?
After checking their products, I found some key reasons.
Here’s what I discovered:
Almost every user with fewer than 10 sales didn’t have the Buy Box.
But all users with more than 25 sales had the Buy Box for all their products.
So, the Buy Box is super important.
Next, I looked at the difference between users with 20-30 sales and those with over 50 sales.
The big difference?
Pricing.
The users with average sales (20-30) priced their products a bit higher.
For example, some sold ornaments at $26.95, which is higher than average.
Meanwhile, those with over 50 sales had something in common — they kept shipping costs low.
Most charged under $5 (like $4.95).
Some even offered free shipping, including the user who got 16 orders I mentioned.
There were a couple of users who charged $6.95 for shipping but priced their products lower.
So, it looks like cheaper or free shipping leads to more sales.
Most people are okay with paying less than $5 for shipping, but anything over that might feel too expensive.
Oh, and the account with 82 sales?
That’s mine…
The difference? My account is a registered brand with lots of reviews.
So, established accounts with good reviews tend to sell more.
Here’s what I learned from the stats:
- The Buy Box is the most important factor.
- You need to adjust your prices to find the sweet spot for your account.
New accounts might need to lower their prices at first to build up sales.
Established accounts can raise their prices to boost profits, but they still need to keep prices attractive.
*Some people ask me what price to set for their products…* Well, there’s no one-size-fits-all price. My account and your account are different. You need to find your own sweet spot.
In PODtomatic, we have a “Sync Price” feature that lets you update prices for both existing and new products.
Just go to the “Template” menu, find the pricing template, and adjust your prices there.
So, if you’re with us, try adjusting your product prices.
That’s it for this email.
I wish you all success this Q4!
—Bank K.
