You’ve heard Steven Pope talk about inflation in 2022 on his YouTube channel daily. The government claims it’s at 8-9% in the USA. Whatever the government says, triple it. We’re facing at least 25% inflation. Because of this, it’s really hard to discount for Q4. Running a promotion right now is essentially evaporating your margin. You’ll be essentially working directly for Amazon, for free.
Having said that, there are multiple levers you may decide to still pull for Q4. But they need to be the ONE lever that works for you. With that in mind we’re sharing all the techniques you CAN utilize going into Q4. But you more than likely should only pick the 1-3 levers with an emphasis on timing, that work for your brand.
This one technique is a no-brainer, and everyone should do it. List Price.
If you don’t have MSRP filled in on your Amazon items, take 5 minutes and get it filled in. It can increase your conversion rates immediately. It will make your item LOOK like it’s on discount but it’s really not.
What is MSRP? It is a “list” price that can show on the front end of Amazon. It makes the item look like it is on sale, improving the conversion rate.
Watch Steven Pope talk about it in depth here:
Imagine a customer looking at two different products on Amazon. One is yours, and the other is a competitor’s.
You’re both selling the same thing – a pair of headphones, for example – but, they’re at different prices. The customer has to choose between the two of you.
Which do you think will win?
The answer is simple: the one with the lowest price.
But, here’s where things get interesting:
What if we could make it seem like your product was actually cheaper than it really was?
What if we could give the impression that there was a “savings” in our listing?
Wouldn’t that make people want to buy from us instead of our competitors?
And wouldn’t that ultimately mean more sales for us?
You bet it would!
And that’s exactly what List Price does for Amazon sellers. It lets you create an illusion around your product listings so customers think they’re getting a better deal than they really are—- which helps increase conversion rates.
If this is something you have overlooked, then read on…
What is List Price?
The List Price is one type of strikethrough price which is the suggested retail price of a product as provided by a manufacturer, supplier, or seller.
It is validated against Amazon’s recent sales history and external competitor prices to ensure accurate information to the customers.
In the US, a List Price is also known as the Manufacturer’s Suggested Retail Price (MSRP).
What do you need to set up your List Price?
There are a lot of variables that can affect conversions and sales but, it shows that there is more improvement in conversion rates than anything else when List Price/MSRP is added to the listing on Amazon.
In addition to showing savings to customers, a strikethrough price can help your product stand out from other similar products in the same category.
How to set up your List Price?
Identify if an item doesn’t establish List Price by installing Helium10 Chrome Extension. If there is no yellow line that shows up alongside the sales rank (blue) and price history (green) on the detail page beneath your Bullet Points section, it means List Price has not been created.
Step 1: Once an item with no List Price has been identified. Go to your Amazon Seller account,
Go to Inventory tab > Manage Inventory.
Step 2: Go to the Product Edit page.
Step 3: Go to Offer Tab then, place your List Price.
- It’s good to put it 20% to 35% higher than the actual price of the item – or the previous highest price that the item has sold for
- If we place the List Price to a price that we previously sold at – it increases the chance of the List Price displaying on the page
- Make sure that you will not set your actual price to a higher price than your list price to avoid future buy box losses.
Additional Info on List Price:
Step 4: Click Save and Finish
Step 5: Click Done
- Wait 15 minutes after each change before checking again to give the system plenty of time to apply the changes.
Troubleshooting:
What if it did not show up at the price you set it up?
- Lower it down a dollar for each adjustment until it shows up
- Make sure you are giving it time to properly load on the system before you make any new changes
- Wait 15 minutes after each change before checking again to give it plenty of time to apply the changes
Tips on how to find List Price if not shown under Offer Tab:
- Some categories may show List Price under the more Details section
- Do a CTRL+ F (Windows) / CMD + F (Apple)
- You can search for MSRP/ Suggested/ List
Optimize Your List Price Sooner Rather than Later
Are you missing out on higher profits? Put your List Price to the test using the steps listed above to find out!
Amazon is an extremely competitive marketplace, so be thorough with your List Price / MSRP and it will eventually allow your product to make consistent sales.
Do you have any other questions regarding any Amazon-related issues? Get in touch with us through our socials or click the contact button to know more.
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