Amazon Price Optimization – How to Excel as a Seller

Your Amazon pricing strategy analysis needs to be automated or updated regularly

Selling on Amazon is extremely competitive — not just between different products, but also between multiple sellers of the same item. Often, the price you set determines whether you’ll win the sale, making a strong Amazon pricing strategy essential. This is why, on Amazon, price optimization is crucial.

Combat the Competition with Price Optimization 

Competition Across Products

No matter your niche — from gaming gear to garden furniture — you’ll rarely be the only supplier. Amazon compares products on every search results page using an algorithm that predicts the likelihood of purchase. Price plays a key role here, though the cheapest product doesn’t always win; it’s the listing that best matches the search query and offers an attractive price.

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Competition in the Buy Box

Even if you’re added to an existing product listing, you still compete for the Buy Box — the prominent “Add to Cart” button that determines which seller the customer sees first. Optimizing your price is crucial to winning this spot and boosting sales.

Use the correct Amazon dynamic pricing strategy for every product you have.

In almost all cases, the button contains the offer of one single seller. All other sellers who offer the same product are summarized in a second list which is easily overlooked by buyers.

Your Amazon pricing strategy analysis has to be on point for your products to sell.

So it is not surprising that the Buy Box is considered somewhat of a holy grail of Amazon. After all, 90% of all sales take place in the Buy Box.

TL;DR: Amazon Price Optimization – Key Takeaways

  • Price optimization is crucial for Amazon success — it determines your Buy Box share, visibility, and overall sales performance.
  • Competition is fierce — you’re not only competing with other products but also with sellers of the exact same item.
  • Six proven strategies — from Buy Box and Elastic Pricing to Cross-Product comparisons — help you stay competitive and profitable.
  • Smart pricing models like dynamic, algorithmic, and value-based pricing balance sales volume, visibility, and profit margins.
  • Automation saves time — tools like the SellerLogic Repricer adjust prices continuously, ensuring accuracy and sustainable growth.
  • Winning the Buy Box means winning sales — optimize strategically to grow revenue, protect your margins, and scale efficiently.

Win the Buy Box With the Right (Amazon Pricing) Strategy

While pricing is immensely important, it’s by far not the only relevant metric. In order to win the Buy Box, you have to meet the selection criteria that Amazon uses to choose which products land behind it, and then implement these criteria better than your competitors.

Following criteria are crucial for winning the Buy Box:

Amazon rewards competitive pricing, SELLERLOGIC rewards you with higher margins.

Overall, these metrics are the minimum requirements if your plan is to boost your product visibility. If they are not met, there is no chance of you winning the Buy Box from the outset.

Six Strategies That Cut It

All the pricing strategies below can be tested and applied for free with SELLERLOGIC. Even without automation, these methods are crucial Amazon price optimization strategies for sellers of every level. While an Amazon pricing engine certainly saves time by executing them automatically, you can still implement each one manually with a bit of structure, tracking, and regular adjustments.

1. Buy Box Strategy (Wholesale)
Winning and holding the Buy Box requires you to monitor competitor prices closely and also that you adjust yours to stay competitive without harming your margins. If you make changes, make those changes step-by-step and incrementally — sometimes lowering a price by just €0.10 can make the difference between visibility and obscurity.

2. Manual Strategy (Wholesale & Private Label)
Set your own pricing rules and boundaries. Define minimum and maximum prices, adjust for product launches or seasonal promotions, and test how these changes change your visibility and conversion. 

3. Push Strategy (Wholesale & Private Label)
Base price changes on performance data. When sales go up, gradually increase prices to gain more profit. If demand goes down, lower prices slightly to boost your conversions. Regularly track your sales data regularly to identify the most profitable price points.

4. Daily Push Strategy (Wholesale & Private Label)
Adapt your prices to the behavior of your buyers. When sellers are actively buying, set the prices higher. Set the prices back to the original base price during times when they are not buying (working hours or at night) to retain product visibility.

5. Elastic Pricing: Smarter Prices, Higher Profits
Apply elasticity-based thinking to your pricing. Check your last three sales within the past 10 days and analyze how any price changes you undertook affected sales volume and margins. Use this insight to find the next price point.

6. Cross-Product (Cross-ASIN) Strategy
If you’re selling in competitive niches, identify up to 20 comparable ASINs and track their pricing trends. Find the ideal price gap (for example, staying 3–5% below the average). By reviewing and adjusting prices manually every few days, you can keep your offer attractive while also remaining profitable.

💡 Pro Tip: Manual optimization works best when paired with structured tracking. Use spreadsheets or Amazon’s Business Reports to record your price changes and results. If you’re a SELLERLOGIC Repricer user, this becomes even easier — you automatically get free access to SELLERLOGIC Business Analytics, which lets you monitor your key metrics in detail and quickly see which products are performing well and which need attention.

No seller wants to sell at a loss, see a decrease in product visibility or see their seller rating drop. So, how do you avoid this? On Amazon, a simple low-price strategy won’t cut it — but ignoring prices altogether is just as risky. You can count on it that your competitors are constantly adjusting their prices. Sellers that don’t optimize quickly lose the Buy Box.

How Different Pricing Models Impact Your Sales

Amazon as a platform offers you a variety of pricing approaches. We’ve listed the most effective models for your convenience, each with a distinct strategy and benefit — we’ve also added concrete examples showing how they work in practice.

  • Dynamic Pricing: Adjust your Amazon product prices automatically according to demand, competition, and stock levels.
    Example: Your product costs $20 to produce. Competitors are selling at $25.50. A dynamic repricer sets your price at $25.49 — winning the Buy Box while maintaining a strong margin.
  • Algorithmic Pricing: Use AI or advanced rules to identify optimal prices for your products.
    Case Study: A winter jacket seller noticed competitor prices rise by 15% in November. The algorithm adjusted their price to $91.50 (up from $80 in October), boosting Buy Box ownership and increasing monthly revenue by 18%.
  • Rule-Based Pricing (highly outdated, but still applied by some companies): Predefined rules guide pricing decisions.
    Example: Always price $0.10 below the lowest FBA offer. If competitors drop to $27.00, your listing automatically updates to $26.90, keeping you competitive without manual intervention.
  • Cost-Plus Pricing: Adds a fixed profit margin to total costs.
    Worked Calculation: Cost = $20, desired margin = 30% → Selling price = $20 + ($20 × 0.3) = $26.
  • Value-Based Pricing: Prices reflect perceived customer value rather than just costs or competition.
    Example: A branded kitchen gadget with excellent reviews is priced at $45, even though production costs are $25. Customers perceive higher value, enabling strong margins while remaining competitive.
  • Competitive Pricing: Matches or slightly undercuts rivals to improve Buy Box eligibility.
    Before vs. After Optimization: Original price = $30, profit = $10 (33% margin). Optimized price = $27.50, profit = $7.50 (27% margin), but sales volume increases by 20%, resulting in higher overall revenue.

Amazon Price Optimization – Your Immediate Benefits

Time Saving 

Manually checking and adjusting every price? Not recommendable and also near impossible once your catalog grows. Automate your pricing and reclaim hours of work for what really matters — sourcing products, driving sales and marketing.

Higher Turnover

No Buy Box means no sales — it’s as simple as that. Smart Amazon price optimization increases your Buy Box share, which in turn leads to more products sold, and grows your overall revenue — even if your margins per item are smaller.

Even if the repricer reduces the percentage margin, it ensures higher sales and thus a higher contribution margin.

Profitability

Winning the Buy Box and keeping it is the first crucial step to success. In a second step, one has to secure the highest possible price for each sale, which high-end repricers like the SELLERLOGIC Repricer do automatically. The result? Higher contribution margins and healthier profit growth.

Pricing Accuracy 

Never sell below cost again. By factoring in purchase price, Amazon fees, shipping, and VAT, SELLERLOGIC automatically calculates your minimum profitable price. An optimal Amazon tool.

Strategies

Amazon price optimization isn’t just about winning the Buy Box — it’s about long-term success. Well-defined Amazon seller pricing strategies that react to market and consumer behavior help you attract more buyers, increase sales volume, and maximize profitability.

Wrapping Up 

Selling on Amazon comes with huge advantages — most notably, access to millions of potential customers on a single platform. But there’s a catch: As a fast-moving marketplace, Amazon requires your dynamic pricing strategies to be on point. Make sure they are.

While manual adjustments work for a small catalog, the process quickly becomes time-consuming and unsustainable as your portfolio grows. That’s when it’s time to scale smartly — by automating your pricing with the SellerLogic Repricer for consistent competitiveness and sustainable growth.

FAQs

Does Amazon use dynamic pricing?

Yes, Amazon uses dynamic pricing, meaning product prices change constantly — sometimes several times a day. These adjustments are driven by algorithms that analyze demand, competition, and sales performance. The goal is to stay competitive and maximize profit, making dynamic pricing essential for any seller aiming to succeed on Amazon.

What is Amazon’s low-cost strategy?

Amazon’s low-cost strategy focuses on offering a vast selection of products at competitive prices. By optimizing their supply chain and leveraging economies of scale, Amazon can keep prices low, which attracts a broad base of customers. Sellers can benefit from this strategy by using tools to optimize their pricing and remain competitive in the marketplace.

How does Amazon’s pricing algorithm work?

Amazon’s pricing algorithm is designed to automatically adjust prices based on various factors, including competitor prices, demand, and inventory levels. The goal is to ensure that Amazon’s prices remain competitive while maximizing sales and profitability. Sellers can use similar algorithm-driven repricing tools to stay in sync with these market dynamics.

Does Amazon use dynamic pricing?

Yes, Amazon does use dynamic pricing. This means that prices can change frequently based on current market conditions, such as competitor pricing, customer demand, and stock availability. Dynamic pricing helps Amazon remain competitive and responsive to market trends, ultimately providing the best deals for customers.

What is Amazon’s competitive price strategy?

Amazon’s competitive price strategy involves continuously monitoring and adjusting prices to remain competitive in the market. This strategy relies heavily on sophisticated algorithms and real-time data to ensure that prices are attractive to customers while still being profitable for sellers. Leveraging tools that align with Amazon’s competitive pricing strategy can help sellers increase their chances of winning the Buy Box and boosting sales.

Image credits in order of appearance: © ra2studio – de.depositphotos.com / Screenshot @ Amazon

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