Pricing across marketplaces like Amazon, Udemy, Etsy and others

Lesson Details:

Video Transcription: In this video let's talk about your pricing strategies when you are selling on marketplaces what's a marketplace it's something like etsy.com or amazon.com or any other e-commerce site where you have competitors this video is brought to you by Appy Pie’s Academy and you have to understand how these platforms work they work algorithmically there are two main algorithms that are used across these sites these algorithms tend to be very very similar there is the SEO algorithm when people search on Amazon on and see on other ecommerce sites people search and they find products most business owners really are familiar with the SEO search engine optimization algorithm on these sites conversely most people are far less familiar with the recommendation algorithms for example on Amazon when you buy a product or when you look at a product Amazon shows you other products that other buyers liked or bought and these recommendation algorithms can be far more powerful than the SEO the search why because there you cannot generate more sales then there are people searching just mathematically impossible but if Amazon begins recommending you then guess what that is there it's it's a it would be an absolute flood of sales because Amazon on all these similar products if they start recommending your product the most then you will far i'll grow your SEO sales because amazon is just a giant behemoth it's even hard for us to fathom the level of sales it can bring it just tremendous potential and so but very successful sellers have a really quite a bit recommended in the recommendation algorithms and we'll talk a little bit about how to get a hand in both of those but that's your job you if you want to sell a lot you've got to take care of the SEO and the recombination algorithm not all sites have a recommendation algorithm but all ecommerce sites do have SEO

Of course the problem that you're going to face is that you're never or you're almost never without competition so you have to price accordingly you already understand that and though one of the strongest ways that you will out rank in and compete out-compete your competitors is by selling for a total higher dollar amount this is extremely extremely important I want you to focus on this every month or every whatever time period let's say month you have to sell for a total amount more than your competitors why is this important it's important because if you sell for a cheaper price you're gonna sell more items but together that they're gonna come for a lower price if you sell for a higher amount you're obviously going to sell less items but because it's per item you're charging more that your sum total is bigger so it's a really sensitive balance of which one to do and you have to experiment of course the main problem with that is that higher price the higher you raise the price you have fewer customers and what is that the problem with having fewer customers is that if you have refined and if you have created a large long-term customer value and you have fewer of those guys when you're making exponentially less money so you don't want to stay with lower pricing for too long you may get ahead with lower pricing to beat out the bad competitors the low-quality competitors just so you can outsell them because they sell almost nothing but eventually you want to begin raising prices okay so in the beginning you want to fight to be number one or close to number one in your niche and beat out all the low-quality competitors and and you can do that just by increasing your sales and having a higher as a having a lower price that's one of the tactics of course it's not the only tactic but in terms of pricing that's the tactic but then at some point you want to fight to be best in class in quality and once and in ranking in search and in getting recommended and then they're all gonna be hand in hand because you're gonna have quality signals that you're going to be sending to the e-commerce site and they're gonna like the Amazon for example they're gonna collect all kinds of quality signals about how your product is bought used browsed reviewed and they're gonna be able to pretty closely determine pretty closely to approximate how good your product is compared to your competitors and once you're number one in niche you can raise your price and what you're gonna be able to achieve is more sales at higher prices than competitors it's not immediate but that's where you want to be and the key to that is quality and the key to that is just sell sell sell sell sell so that you're selling for a larger sum overall and that's gonna propel you higher and to be more recommended by the search engines these are by these platica merce platforms.