Amazon Sales Rank is a lot of things. It can help to show you an item’s popularity and the rate at which it sells.
And believe it or not, it can even provide you guidelines for pricing your items.
Segment Your Inventory
The first step to implementing this strategy is to segment your inventory by category sales rank. This is easy to do in Sellery. Create smart lists that filter for category and a range of sales ranks.
Important Note: Keep categories separate. Different categories have different numbers of items.
Prime the Pump
Items with the worst sales ranks need a boost! Set a low margin so you break even or turn a small profit on each sale in order to build momentum and improved sales rank with each order.
As sales occur, the items’ sales ranks will improve, moving them into new smart lists (remember that they’re dynamic and update themselves).
Important Notes: Make sure to use multiple pricing rules and pricing strategies to ensure that your margins change as sales increase. Also note, that this strategy only works with items where you have a large supply, or where the inventory is replenishable.
Margin not Competition
By setting your prices according to profit margin based on your items cost, you’re avoiding getting caught up in pricing wars with your competition.
Instead you’re relying on the nature of sales rank to ensure that you’re making money. On items with a good enough sales rank, you’ll make sales at your desired margin, almost regardless of the competition.
Automate the Process with Sellery
Sellery makes it easy to set prices according to an item’s sales rank and according to your profit margin. This strategy can be accomplished manually, but it can be tricky, because you must reprice multiple times per day, especially when you are making sales.
Implement this strategy and the others we’ve talked about in the past month with Sellery.
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