Amazon Case Study: Does a $1 price reduction help sales? We tested this with a month over month comparison and lost $458 in revenue with static unit sales for one of our brands-Before Price Change: 07/24 to 08/20
– After Price Change: 08/21 to 09/15
There is a 1% net increase in Unit Sales but a 4% net decrease in Revenue. A few SKUs do show a sharp increase in Unit Sales such as Baby, Auntie & Granny, however many actually are showing a decline in Sales.
End result: Raised price back to $14.99. Even though the competition is at a lower price, the 600+ 5⭐reviews allow for a higher price and better margin for nearly $500 in more revenue per month.