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1
Click to edit Master subtitle style
THE 2017
Amazon
VIRTUAL SUMMIT
Presented BY:
2
AMAZON SUMMIT LOGISTICS
11am PST / 2pm EST EACH
DAY
3-DAY EVENT | 2/28, 3/1 & 3/2
ALL 3 DAYS ARE BEING RECORDED & SENT
O...
3
AMAZON SUMMIT LOGISTICS
Maximizing Your Amazon Product
Discoverability via Content Optimization
Price Wars: Overtaking Y...
4
5
AGENDA
• Key Buy Box variables
• Busting Buy Box myths
• Defining price wars
• Why price wars occur on Amazon
• Avoiding...
HOW DOES THE BUY BOX ALGORITHM
WORK?
THE BUY BOX
Key Questions to Consider
• Is your Product Prime Eligible?
• What is your Landed Price?
• Are you exceeding A...
WHY SELLERS SHOULD CARE ABOUT
THE BUY BOX
82% of Amazon website sales today go through the Buy Box,
and this number greatl...
LOWEST PRICE ALWAYS WINS THE BUY
BOX: NOT TRUE
10
DOES AMAZON ALWAYS WIN THE BUY
BOX?
RULE-BASED
VS.
ALGORITHMIC REPRICERS
AMAZON PRICE WARS
14
DEFINITION OF PRICE WARS
A commercial competition characterized
by the repeated cutting of prices below
those of compet...
15
FAMOUS EXAMPLES
16
FAMOUS EXAMPLES
VS VS
VS
17
WHY PRICE WARS OCCUR
Price wars are becoming more common because
managers tend to view a price change as an
easy, quick...
AMAZON PRICE WARS
EXAMPLES
19
PRICE WARS: EXAMPLE 1
Short price war, low impact
20
PRICE WARS: EXAMPLE 2
Short price war, high impact
21
PRICE WARS: EXAMPLE 3
Multiple competitors, Multiple methods
AMAZON PRICE WARS:
STATISTICS
23
PRICE WAR DURATION
24
NUMBER OF COMPETITORS IN PRICE WARS
25
PERCENTAGE OF FBA AND FBM PRODUCTS
26
WHY DO PRICE WARS HAPPEN ON AMAZON?
Rule-based repricing
• Competing for the
same product
• Lack of understanding
MANAGING PRICE WARS
ON AMAZON
28
THE PRISONER’S DILEMMA
• You and another person were both arrested for something you did
• Each one is in solitary conf...
29
THE PRISONER’S DILEMMA
• If both you and the other person remain silent,
you each get 1 year in prison
YOU
OTHER PERSON...
30
THE AMAZON SELLER’S DILEMMA
• You and another Amazon seller are selling a profitable product
• You have no way to commu...
31
THE AMAZON SELLER’S DILEMMA
• If you both cooperate and keep prices high,
you each make $10 million in profit
YOU
COMPE...
32
HOW TO AVOID PRICE WARS?
1. Be patient
2. Know your competitors
3. Be a market leader
33
What is their repricing method?
KNOW YOUR COMPETITORS
34
How low can they go?
KNOW YOUR COMPETITORS
35
What goes down must come up
KNOW YOUR COMPETITORS
36
Click to edit Master subtitle style
Day 3 | March 2nd | 11am PST/2pm EST
Finding More Traffic, Finding More Sales
Topic...
37
38
THANK YOU
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The 2017 Amazon Virtual Summit: Day 2

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What causes Price Wars on Amazon?
How to manage price wars on Amazon
Identifying the best pricing strategy for your business
Live open Q&A

Published in: Retail
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The 2017 Amazon Virtual Summit: Day 2

  1. 1. 1 Click to edit Master subtitle style THE 2017 Amazon VIRTUAL SUMMIT Presented BY:
  2. 2. 2 AMAZON SUMMIT LOGISTICS 11am PST / 2pm EST EACH DAY 3-DAY EVENT | 2/28, 3/1 & 3/2 ALL 3 DAYS ARE BEING RECORDED & SENT OUT HAVE A QUESTION? SUBMIT IN CHAT BOX MORE RESOURCES IN ‘HANDOUTS’ SECTION
  3. 3. 3 AMAZON SUMMIT LOGISTICS Maximizing Your Amazon Product Discoverability via Content Optimization Price Wars: Overtaking Your Competitors On Amazon Finding More Traffic, Finding More Sales DAY 3 DAY 2 DAY 1
  4. 4. 4
  5. 5. 5 AGENDA • Key Buy Box variables • Busting Buy Box myths • Defining price wars • Why price wars occur on Amazon • Avoiding price wars • How to handle price wars the smart way
  6. 6. HOW DOES THE BUY BOX ALGORITHM WORK?
  7. 7. THE BUY BOX Key Questions to Consider • Is your Product Prime Eligible? • What is your Landed Price? • Are you exceeding Amazon’s target for Seller performance? • How fast are your hipping times relative to your customer base? • Are your products consistently in stock and in quantities that ensure demand will be met?
  8. 8. WHY SELLERS SHOULD CARE ABOUT THE BUY BOX 82% of Amazon website sales today go through the Buy Box, and this number greatly increases with Amazon mobile sales
  9. 9. LOWEST PRICE ALWAYS WINS THE BUY BOX: NOT TRUE
  10. 10. 10
  11. 11. DOES AMAZON ALWAYS WIN THE BUY BOX?
  12. 12. RULE-BASED VS. ALGORITHMIC REPRICERS
  13. 13. AMAZON PRICE WARS
  14. 14. 14 DEFINITION OF PRICE WARS A commercial competition characterized by the repeated cutting of prices below those of competitors
  15. 15. 15 FAMOUS EXAMPLES
  16. 16. 16 FAMOUS EXAMPLES VS VS VS
  17. 17. 17 WHY PRICE WARS OCCUR Price wars are becoming more common because managers tend to view a price change as an easy, quick, and reversible action
  18. 18. AMAZON PRICE WARS EXAMPLES
  19. 19. 19 PRICE WARS: EXAMPLE 1 Short price war, low impact
  20. 20. 20 PRICE WARS: EXAMPLE 2 Short price war, high impact
  21. 21. 21 PRICE WARS: EXAMPLE 3 Multiple competitors, Multiple methods
  22. 22. AMAZON PRICE WARS: STATISTICS
  23. 23. 23 PRICE WAR DURATION
  24. 24. 24 NUMBER OF COMPETITORS IN PRICE WARS
  25. 25. 25 PERCENTAGE OF FBA AND FBM PRODUCTS
  26. 26. 26 WHY DO PRICE WARS HAPPEN ON AMAZON? Rule-based repricing • Competing for the same product • Lack of understanding
  27. 27. MANAGING PRICE WARS ON AMAZON
  28. 28. 28 THE PRISONER’S DILEMMA • You and another person were both arrested for something you did • Each one is in solitary confinement with no means of communicating with the other • The prosecutors offer each one of you a bargain. Each prisoner is given the opportunity either to: betray and testify that the other committed the crime, or to cooperate with the other by remaining silent.
  29. 29. 29 THE PRISONER’S DILEMMA • If both you and the other person remain silent, you each get 1 year in prison YOU OTHER PERSON Silent Silent 1 year, 1 year Betray Betray 5 years, Free Free , 5 years • If the other person betray you and you don’t, he goes free and you spend five years in prison • If you betray and the other person doesn’t, you go free and he spends five years in prison 3 year , 3 year• If both of you betray, each one will get 3 years in prison
  30. 30. 30 THE AMAZON SELLER’S DILEMMA • You and another Amazon seller are selling a profitable product • You have no way to communicate with the other sellers
  31. 31. 31 THE AMAZON SELLER’S DILEMMA • If you both cooperate and keep prices high, you each make $10 million in profit YOU COMPETITOR Keep price high Keep price high $10M , $10M Cut price Cut price $2M , $13M $13M , $2M • If you lower prices and your competitor doesn’t, you make $13 million in profit and your competitor only makes $2 million • If your competitor lowers prices and you don’t, your competitor makes $13 million and you make $2 million $5M , $5M• If you both compete and lower prices, you each make $5 million in profit
  32. 32. 32 HOW TO AVOID PRICE WARS? 1. Be patient 2. Know your competitors 3. Be a market leader
  33. 33. 33 What is their repricing method? KNOW YOUR COMPETITORS
  34. 34. 34 How low can they go? KNOW YOUR COMPETITORS
  35. 35. 35 What goes down must come up KNOW YOUR COMPETITORS
  36. 36. 36 Click to edit Master subtitle style Day 3 | March 2nd | 11am PST/2pm EST Finding More Traffic, Finding More Sales Topics Discussed: • Amazon Marketing Services – The New Frontier • Optimizing Your Sponsored Product Ads • Leveraging Other People’s Traffic • Creating Promotions that Convert • Live Walk-Through and Open Q&A
  37. 37. 37
  38. 38. 38 THANK YOU

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