A premium skincare brand selling on Amazon faced challenges when attempting to raise the price of their best-selling Crepe Repair Cream from $59.99 to $79.99. The brand’s goal was to increase profitability while maintaining a strong conversion rate and Buy Box ownership.
Aggressive product price increase
Each time the client raised the product price too aggressively, they lost the Buy Box. Without Buy Box control, sales plummeted, and competitors gained visibility. The brand needed a pricing strategy that allowed them to achieve their desired price point while keeping the Buy Box active.
To address the issue, we implemented a phased price increase strategy:
- List Price Adjustment: First, we updated the List Price (MSRP) to $79.99. This signaled to Amazon’s algorithm that the new price point was within a reasonable range.
- Gradual Price Increase: Instead of jumping from $59.99 to $79.99 immediately, we made incremental price adjustments:
- Increased by $1 per day in the first phase.
- Increased by $3 per day after initial stabilization.
- Monitoring Buy Box Status: We tracked Buy Box retention, pricing history, and competitor reactions after each adjustment.
- Customer Behavior Analysis: We monitored conversion rates and sales velocity to ensure demand remained steady as the price increased.
- Successfully raised the price to $79.99 while retaining Buy Box ownership.
- Maintained consistent sales velocity throughout the price transition.
- Avoided Buy Box suppression, ensuring continued visibility and organic ranking.
- Strengthened Amazon’s acceptance of the new price point, reducing future pricing volatility.
Key Takeaways
- Phased pricing adjustments help Amazon’s algorithm adapt smoothly to price increases.
- Setting the List Price first establishes price credibility with Amazon and consumers.
- Monitoring Buy Box and conversion data ensures price adjustments don’t negatively impact sales.
By leveraging a strategic and controlled price increase approach, the brand successfully optimized pricing without disrupting sales performance, proving that gradual adjustments are key to maintaining Buy Box control while improving profitability.
If you have additional questions or want us to help you on your Amazon journey, don’t hesitate to contact the BellaVix Team.
Keep Up with Amazon and Walmart Seller News
One place where we can find all of the most updated information on everything Amazon and Walmart.
Sign up for our newsletter to keep up with the news and updates in the industry.
Need competitive insights or to catch the pulse on the market?
Submit an inquiry to connect with the BellaVix team today!