How Significant is Pricing Amazon Products at .00, .99, or .97?
Pricing Amazon products can feel like the biggest tug of war in the minds of many sellers. Do you price it lower to undercut the competition, or do you price higher to make your product appear more valuable?
More interestingly, how do you end your pricing? Do you make it something like $9.99, or an even $10.00? Does it even matter? The answer may surprise you, depending who you talk to when pricing Amazon products.
In this episode of Amazon Seller Secrets Revealed by the AMPM Podcast, our guests talk about pricing Amazon products and how they like to end their displayed prices online. Is it a strategic marketing ploy, or is it just a cultural thing?
Today’s question that focuses on pricing Amazon products at certain penny intervals is:
“How do you price your products and why? Do you end it with .00, .99, or .97?”
See the full Amazon Seller Secrets Revealed video here:
Here is a more in-depth look at the expert answers:
Here’s how top sellers approach pricing Amazon products…
Barbara Boschen, Co-Founder of Comerchant Relisting Software
So if it’s something that is more, um, and even maybe general commodity type thing, like a soap sampler or something that you would give as a gift, I’ll tend to do that with $19.99, $14.99, $9.99. I try to find products that fit those characteristics. So if it’s selling for $14.99, my cost has to be less than $5, right? To cover amazon fee and my margin and everything. But those amounts I think are really meaningful to a customer. Like it’s actually more expensive to them to sell it for $18.99 than $19.99.
For a more luxury-oriented product, I will do 00. so it’s $36.00 or it’s $40.00. It’s never $39.99 or $49.99 because at that price point, you’re in a different mentality.
Greg Mercer, Jungle Scout CEO
For pricing products, we’ve done a lot of split testing around this actually, and the results from these split tests have shown that it doesn’t matter whether you use like 90, 95, 97, or 99. None of the products that were tested, even the ones that sell very well had enough volume to ever reach statistical significance.
At the end of the day, it doesn’t really matter at all. Which one of those you choose. The split test that did reach statistical significance was like 19.99 versus 20.00. And that one actually did convert a hair bit better than the .99. So I price, all my products at .97 or .99, it doesn’t matter.
The only advice I’d give to you guys is just don’t do the .00. Just do a penny or a few pennies lower than that.
Nick Katz, The Japan Guy
You have to research as to what kind of pricing is normal and what feels right to the customer. I sell a lot in Japan and I live in Japan, and they don’t end products with 99. You kind of get used to the prices in the country you’re in and if you see a price is not right. It just kind of feels weird. I’ve been in Japan a very long time and they finish with 80, so it could be 80 or 800. So for example, $18 in America would be about 1,900 yen. So if I wanted to sell an $18 product in Japan. I would price it at, for example, 1,980 yen or 1,800 yen. [This] is really, really weird for like a Westerner. I’m from England; that’s a weird price in England, but it feels right in Japan.
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