Amazon just changed the price for non-Prime members to qualify for Free Super Saver Shipping, an increase from purchases of $25 to $35. This is the first time in over a decade that Amazon has changed the price to qualify for free shipping.
Already, people on FBA forums and Facebook pages are complaining about this change, but I see it as a HUGE opportunity for FBA sellers to capitalize on. If you react correctly, then this change by Amazon will actually help your business. Here are some reasons to celebrate this change:
1. With this change, more people will sign up for Amazon Prime. With even more people signed up for Prime, there will be more people to buy your FBA products.
2. Before today, the “magic number” for pricing an item was $25. Since people want some items to be Fulfilled By Amazon and arrive at their door just 2 days later, some people are willing to pay just about anything to get that item fast. Before today, people would buy an item for $25 just to get it in 2 days even though there were Merchant Fulfilled sellers selling the same item for $8.00. Now that the price is $35, that means more people paying more money for the same items.
It will take some work, but those that react the fastest will win. I recommend doing some price changes quickly. Here is what I plan on doing with my inventory:
1. Change most of my $25 priced items to $35 immediately.
2. See what items I have that are priced between $30 and $34.99 and raise ALL of those prices to $35.
3. Look at the items that are currently between $25.01 and 29.99 and see if I want to raise those prices to $35. Based on the competition, there might be some items that I would be smart to raise the price on.
Of course there will be some exceptions to the above rules. Exceptions come into play when you look at other current FBA prices, how many items are being sold of that item, how the particular product category works, and more… but most of my prices will be changed ASAP!
One last tip: Another “magic” price point will be $17.50. If the item you have could possibly be bought in multiple quantities, then this is a great price point for people who want to buy two. Two items at $17.50 total $35.oo and qualifies for Free Super Saver Shipping!
So what do you think about the new $35 price point? How do you plan to react to these changes? I’d love to hear your thoughts in the comments below.
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