As Amazon sellers, we’re constantly on the lookout for innovative strategies to boost our businesses in the fiercely competitive e-commerce landscape.
If you’re here, you’re already one step ahead in that game. Today, we’re diving into a powerful yet often overlooked tool in our arsenal – strike-through pricing.
So, here’s the objective:
We want to initiate strike-through pricing on your Amazon listings to enhance your conversion rates and, ultimately, boost your sales.
By the end of this post, you’ll not only understand the psychology behind strike-through pricing and its significance, but also be well-equipped with the knowledge and tools to implement it effectively in your Amazon business.
Ready to take your Amazon game to the next level? Let’s get started.
Understanding Strike-Through Pricing
Now that we’ve established the importance and evolution of strike-through pricing, it’s time to delve deeper into this powerful tool and understand why it’s a dynamic tool for Amazon sellers.
How Strike-Through Pricing Affects Shopper Psychology
At its core, strike-through pricing is a psychological trigger that influences a shopper’s decision-making process.
It’s the difference between an item being overlooked and one that stands out in a crowded marketplace. When potential customers see a product with a visible strike-through a higher price, it naturally piques their interest.
Here’s why it works: Shoppers tend to perceive products with a strike-through as being offered at a significant discount. It triggers a sense of urgency and FOMO (Fear of Missing Out).
When they see that they can get the same quality product for less, they’re more inclined to make a purchase. It’s akin to offering them a limited-time deal, and human psychology responds positively to such incentives.
The Concept of Relative Value and Reduced Friction
One of the key advantages of strike-through pricing is its ability to position your product more favorably on the Relative Value Scale.
In simple terms, it makes your product appear like a better deal when compared to the competition. When shoppers see that they’re getting a discount, they automatically feel like they’re making a smart choice.
This perception of value often leads to higher conversion rates and increased sales.
Moreover, strike-through pricing reduces the friction associated with making a purchase.
Customers are less likely to hesitate when they perceive that they’re getting a deal. It minimizes the psychological barriers that might prevent them from clicking that Buy Now button.
The Changes Amazon Made to Regulate Strike-Through Pricing
Amazon is dedicated to ensuring fairness and preventing manipulative practices. To address some issues related to strike-through pricing, they implemented changes.
Here’s the key change you need to be aware of: strike-through pricing will only be displayed on your product if you’ve made sales equal to or less than your final offer price in the last 30 days.
In other words, you need to back up your offer price with real sales data.
This change is intended to discourage sellers from exploiting the system by setting unrealistically high listed prices. Amazon is constantly working to maintain the integrity of the marketplace, ensuring that customers receive genuine discounts and deals.
Understanding the psychology behind strike-through pricing and these regulatory changes is the first step to using this strategy effectively.
Setting Up strike-through pricing on Amazon
Now that we understand the psychological power of strike-through pricing and how it has evolved on Amazon, let’s get to the nitty-gritty of setting it up for your own Amazon listings.
Determining Your Final Offer Price
The first step in the process is determining your final offer price. This is the price you want to display as the deal for your potential customers.
It’s crucial to strike a balance here. Your offer price should be attractive enough to entice shoppers, but it should also be a price point that still ensures profitability for you as a seller.
Take some time to analyze your costs, competitor prices, and your profit margin to arrive at a competitive yet sustainable offer price.
Matching Your Listed Price to Your Final Price
One of the essential requirements for strike-through pricing is that your listed price must match or be higher than your final offer price.
To set up your product effectively, make sure that these two prices align. The listed price serves as the reference point for the strike through, indicating the discount your potential buyers are getting.
Using Coupons to Initiate the Process
To initiate strike-through pricing, you need to provide evidence of genuine sales that reflect a price lower than your final offer. This is where coupons come into play.
Coupons are a handy tool within Amazon’s advertising section of Seller Central. They allow you to create time-limited discounts that encourage buyers to make a purchase.
Create a coupon campaign by specifying the product you want to apply the discount to and set the percentage off. It’s advisable to offer a substantial discount that would motivate potential customers to use the coupon.
You can limit the number of times a single person can redeem the coupon and even set a budget for your campaign.
Calculating the Range of Strike-Through Pricing
Now, here’s where it gets interesting. You’ve set your final offer price and launched a coupon campaign to trigger it, but what range of strike-through pricing can you expect?
It’s simple to calculate. If your final offer price is $21.99 and your coupon provides a 40% discount, your strike-through pricing will range from your listed price down to 40% less than your offer price.
In this case, your range would fall between $23.99 and $14.39.
Finalizing Your Desired Final Offer Price
Your objective is to finalize your desired final offer price. In our example, that would be $21.99.
After your coupon campaign has run its course and generated sales within the specified range, you can adjust your product’s listed price to match your desired final offer price.
Once that’s done, the strike-through will appear, indicating the discount and value your product offers.
It’s worth noting that strike-through pricing isn’t a one-time trick.
To maintain it, you may need to repeat this process after a certain period. Keeping your listed price higher than your final offer price, along with well-planned coupon campaigns, can help ensure your products consistently feature that attractive strike through, driving increased conversions and sales.
While this pricing strategy can be a game-changer, it’s most effective when used in conjunction with other optimization strategies. We’ll explore that next.
Practical Walkthrough: How to Set Up Strike-Through Pricing
By now, you’ve got a solid grasp of the theory behind strike-through pricing. It’s time to put that knowledge into practice.
- From your Amazon Seller Central dashboard, select the product for which you want to enable strike-through pricing.
- Adjust your final offer price. This price is displayed to potential customers as a deal. Make sure it’s competitive, but still profitable.
- Make sure that your listed price is equal to or higher than your final offer price.
Now we’re going to use a coupon campaign to trigger the strike-through pricing.
- From Seller Central, click the hamburger (three lines) menuin the left navigation, click Advertising in the drop-down, and select Coupons from the fly-out menu.
- Click the yellow Create a new coupon button in the top-right corner.
- Paste in the ASIN for the product you’ve been working on to apply strike-through pricing to. Click Continue.
- Set the duration for your coupon campaign. We recommend 2 to 3 days.
- Specify the discount percentage you want to offer via your coupon. To trigger the strike-through pricing effectively, it’s advisable to provide a substantial discount that grabs shoppers’ attention.
- Limit the number of times a single person can redeem the coupon to one.
- Set a budget for your coupon campaign. The minimum is fine.
- Select the customer base you want to target. You can choose All Customers or Prime. Click Continue.
- Submit your campaign by clicking the Submit button. Your campaign will become active within a few hours.
Monitoring the Results and Expired Campaigns
- Track Coupon Usage – Regularly check your coupon campaign’s performance. Monitor how many customers are using the coupon to purchase your product.
- Evaluate Strike-Through Pricing – Once your coupon campaign generates sales within the specified range, you can go back to your product listing. Set the listed price to match your desired final offer price. The strike-through will appear, indicating the discount and value you’re offering.
- Repeat as Needed – Keep in mind that strike-through pricing isn’t a one-time fix. To maintain it, you might need to repeat this process. Ensure that your listed price remains higher than your final offer price and use well-planned coupon campaigns to keep the strike through appearing.
Remember that these strategies might require some trial and error to find the perfect balance for your products. Different niches and customer demographics may respond differently, so be prepared to adjust your approach as needed.
Once you’ve successfully set up strike-through pricing for your Amazon products, you’re on your way to experiencing increased conversions and sales. The journey doesn’t end here. Next, we’ll explore how to maximize the impact of strike-through pricing by combining it with other optimization strategies.
Maximizing the Impact of Strike-Through Pricing
The true power of this strategy lies in its synergy with other optimization techniques. These strategies can maximize the impact of strike-through pricing and take your Amazon business to the next level.
Complementing Strike-Through Pricing with Other Optimization Strategies
Strike-through pricing is a fantastic tool, but it’s even more potent when combined with other conversion rate optimization strategies.
Consider the following to further boost your product listings:
- High-Quality Images – Invest in captivating product images. High-resolution photos that showcase your product from different angles and highlight its features can make a significant difference. A picture is worth a thousand words, and in e-commerce, it might as well be worth a thousand sales.
- Compelling Titles – Craft engaging and informative product titles. Make sure your title clearly conveys what your product is and its key benefits. A well-structured title not only attracts shoppers but also helps with Amazon’s search algorithms.
- Bullet Points and Descriptions – Use bullet points and detailed product descriptions to provide essential information about your product. Be concise and persuasive, addressing potential customer questions and concerns.
- Reviews and Ratings – Encourage satisfied customers to leave reviews. Positive reviews build trust and can be a significant factor in a potential buyer’s decision-making process.
- Optimized Keywords – Perform keyword research and integrate relevant keywords in your product listing. Well-placed keywords can improve your product’s visibility on Amazon’s search results pages.
- A/B Testing – Experiment with different variations of your product listing. A/B testing allows you to discover which elements are most effective in driving conversions and refine your approach accordingly.
The Role of Product Images and Strong Titles
Product images and titles are often the first things a shopper notices. They’re like the cover of a book, and we all know the importance of a captivating cover. Your images should be clear, well-lit, and showcase your product’s unique selling points. The images should tell a story and make shoppers visualize owning your product.
A compelling title is your product’s introduction. It should be clear, concise, and include relevant keywords. It should convey the product’s core benefits and attributes. A strong title makes a lasting first impression and helps your product stand out.
Understanding the Cumulative Effect of Small Improvements
In the world of Amazon selling, the power of small, incremental improvements cannot be overstated. Each tweak and optimization, whether it’s enhancing your product images, refining your title, or setting up strike-through pricing, contributes to an overall boost in your conversion rate.
Think of it like building a puzzle. Each piece fits together to create the big picture – a successful Amazon business. The cumulative effect of these small improvements can be transformative over time. It’s not just about one strategy; it’s about the sum of all your efforts.
In summary, the key to Amazon success is a holistic approach. strike-through pricing is a valuable tool, but when combined with other optimization strategies, it becomes a game-changer. Quality images, strong titles, and an understanding of how small improvements add up can significantly impact your Amazon business.
So, don’t stop here. Keep fine-tuning your product listings, experimenting with different strategies, and staying informed about the latest trends and techniques in the world of Amazon selling. Your journey towards a thriving Amazon business is an ongoing one, and with the right approach, success is well within your reach.
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