Earning most profit is the ultimate goal of all the sellers and it should be, for this is something that draws most sellers to Amazon Marketplace. There are two key parameters in the definition of a profitable business. They are −
You can detect whether the product you are investing upon is worth it or not by gauging its demand. Try looking at how many people are exactly interested in buying the product you are going to sell. What is the requirement for the same? How many different sellers are in line to meet the demand and with what quality product?
The margin you are getting on your sales is similarly significant. Something a lot of people are selling doesn't necessarily mean is going to sell well with high profit. There is no standardized benchmark for what exactly is a good margin. Margins depend to a great extent on the quantity. If the demand is high and you are getting a lower margin on the product, even then the sale will consequently become a profitable one.
Following are some tricks to target high sales −
Target the Buy Box − Winning the Buy Box is something than just price. Pricing down to beat a seller with a poor rating is of no worth in comparison to winning the Buy Box otherwise.
Compare your costs against condition with competitors − Compare your prices with competitor’s new product against a new and utilized product and then list your price.
Do not follow the flock − Avoid pricing against merchants with low rating. Buyers don't like to buy from a seller with low rating. If a couple of merchants are lowering down their costs to fight it out, don’t be a part of them. Basically stay away and focus towards different goals.
Try getting the highest rating − Your customer is undoubtedly your greatest resource! Supply quality product to your customer at reliable rates and good shipping service. Look at the post-transaction grievances and try settling most of them. Keep a constant check on your price and quality. Give due consideration to the customer’s feedback and reply to any inquiry. All this finally enters you into the zone of highly rated seller.