#amazon
Amazon
Thread
Hey! Planning to launch on Amazon before their spring sale in March. Would love any guidance on pricing strategies between Amazon and our DTC store.
• Should we add a slight premium on Amazon for convenience and to buffer our margin?
• Should we raise prices on our site to maintain the prime button and keep Amazon happy?
• Should we offer a smaller selection of colors on Amazon to drive customers to site?
Would love to hear any feedback or best practices 🙏
@Rose Fierman Congrats on your launch! I would recommend amazon slightly higher (not a lot) for margins and to keep your site the premium place to shop.
In terms of colors, I wouldn’t cut yourself short but for cost purposes you could start with your best selling colors and add more later. You don’t want to have to send inventory into amazon that doesn’t get sold.
Thank you @Jeremy Ciolli ! How did you think about allotting inventory to FBA (if you used FBA)?
<@U07U1BG6ERG> thanks so much! Going to DM you about pricing strategies/promotional tactics 👍
@Rose Fierman We do our demand planning and send in 3 months to start. Then based on run rates after first 6 weeks I’ll send in the next 3 months.
<@U07U1BG6ERG> Our website doesn’t get flagged by amazon as competitive price…although every other channel does. Several of our prices are higher on amazon - never had an issue.
@Rose Fierman this is exciting, good for you. I personally like price parity, but you can make it a little more. Keep in mind, you may think your margin is "so much better" on D2C since Amazon is prob taking 15% referral fee - but your converstion rate on Amazon should 4-5x what it probably is on your D2C, so CPA is often, less. People rarely believe that until they really do the math. Either way, you'll be fine.
I like catalog parity for the same reason - IMO with 20+ years of selling and managing brands in an agency, those who go into Amazon with the "I really wanna just drive traffic back to my D2C" rarely do well on Amazon. Shoppers are there because taht is where they want to buy. But, you can still use the strategy - there is no harm in soft launch, and adding more color later.
QUESTION:
Do you have an account setup already? We're members of a special Agency Program, and if you've not yet launched, we can get you in with a lot of extra perks (that I can't disclose publically). One of them is a lot of extra marketing help and Strategic Amazon Account help for a year.
I'll send you a PM w/ more details