The reason is that most people use automated repricers on Amazon, and we set minimum and maximum prices for which the bots can operate within. The competition is fierce here, and people are trying to undercut competition using our repricing bots. At minimum, I may only make 2-3$ on a sale, which is not great. Once it gets below 6% profit, I refuse to take the sale and my minimums reflect that, based on my costs and calculated shipping rate. However, sometimes on Amazon the competition goes AWOL or something and I sell an item for double what it sells for on my website due to the repricer raising the price automatically.
Seller websites are usually set at fixed margin. However, we always are willing to make a deal to undercut the lowest we will go on Amazon. Both to make a customer, and because I only have to pay credit card fees on my website instead of all that commission. Amazon charges on average of 12-15% commission, though some categories are much worse. If you see a price on Amazon, you can always ask for a 10% discount to buy direct and 9/10 times they will say yes. I think the optimal solution is probably to sync prices from Amazon to the website and then undercut by 5%.
The reason is that most people use automated repricers on Amazon, and we set minimum and maximum prices for which the bots can operate within. The competition is fierce here, and people are trying to undercut competition using our repricing bots. At minimum, I may only make 2-3$ on a sale, which is not great. Once it gets below 6% profit, I refuse to take the sale and my minimums reflect that, based on my costs and calculated shipping rate. However, sometimes on Amazon the competition goes AWOL or something and I sell an item for double what it sells for on my website due to the repricer raising the price automatically.
Seller websites are usually set at fixed margin. However, we always are willing to make a deal to undercut the lowest we will go on Amazon. Both to make a customer, and because I only have to pay credit card fees on my website instead of all that commission. Amazon charges on average of 12-15% commission, though some categories are much worse. If you see a price on Amazon, you can always ask for a 10% discount to buy direct and 9/10 times they will say yes. I think the optimal solution is probably to sync prices from Amazon to the website and then undercut by 5%.