How to Get a Price Increase Approved on Amazon
We understand the challenges of getting a price increase approved on Amazon. There are a few key strategies you can use to increase your chances of success.
Understand Amazon's pricing policies: Before attempting to get a price increase approved, it’s important to understand Amazon's pricing policies. Amazon is committed to offering the lowest prices to its customers and they regularly monitor the prices of products to ensure that they are competitive. It is unlikely to get an approved price increase unless there is a compelling reason to do so.
Move your market retails early: Another key strategy is to move market retails early. Before requesting the price increase from Amazon, start selling your product at the new price to other retailers on other platforms or in brick-and-mortar locations. This shows Amazon that this price increase is necessary to remain competitive. By adjusting market retails in advance, you can show Amazon that your price increase is consistent with market trends and their margin will remain whole.
Provide a compelling reason for the price increase: Amazon is more likely to approve a price increase if there is a solid justification for it. Be prepared to provide evidence to support your price increase such as increased production costs or changes in the market. Provide clear and detailed information on why the increase is necessary and call-out how it will benefit both you and Amazon.
Build a relationship with Amazon: Building a relationship with Amazon can increase the chances of getting a price increase approved. Whether it’s you or your ecomm agency, engage with your Amazon account manager regularly, providing updates on product performance, sales data, and any changes in the market. This proves you are proactive and invested in the success of your products on Amazon.
Be flexible: Be prepared to negotiate with Amazon. Amazon may be more willing to approve a price increase if you’re willing to offer additional incentives, such as increased marketing or advertising support.
Getting a price increase approved on Amazon can be challenging. By understanding and using these key strategies, you’ll increase your chances of success. If you’ve tried these strategies and you still can’t get your price increase approved, read our article on next steps.
MPI Advantage has the expertise to help with strategic pricing strategies and more. Need help? Let’s connect!