(2.2) Average Market Price

Average Market Price

Eazyppc welcomes you to the article ‘Average Market Price’. Before getting started, make sure you have reviewed the previous article on ‘Number of Competing Listings’. If not, go back and read it so you don’t miss any important information.

Topic 2: Average Market Price

To determine the price range of a market, you can use the Helium10 tool and install the extension to access Xray. This tool helps you quickly identify the average market price – Average Price:

The Average Price metric reflects the average price of products displayed on an Amazon search results page. This is important data that helps Sellers develop an appropriate pricing strategy. However, during the product pricing process, many new Sellers may make incorrect decisions -> leading to difficulties and an inability to maintain positive cash flow.

1/ Think Carefully Before Improving Your Product

New Sellers typically follow this process:

‘Analyze customer feedback -> Improve the product -> Price it higher.’

A product improvement strategy can create a USP for your product, but you need to consider a few important additional factors:

• Do you have in-depth knowledge of the market? If you are not an expert in a specific product niche, Eazyppc recommends not doing it.
• Do you have the ability to manufacture or customize the product? If you don’t have your own production line or a strong relationship with a manufacturer, Eazyppc recommends not doing it.
• Why haven’t the major brands done this? Top Brands may have already tried it but found that the benefits weren’t large enough to offset the production/improvement/marketing costs -> don’t do it
  • Sellers should research whether Top Brands have already made the product you’re planning to improve (check the brand’s social channels from the past to see if they have made that product, etc.)

-> If you have answered the questions above -> You can consider implementing the approach above.

However, keep in mind:

High sourcing cost -> Selling price above market average -> Low conversion rate -> Low sales & high advertising costs -> Requires a flexible adjustment strategy. The safer strategy is to price at a competitive level or at least equal to the average market price.

Example of Average Price on Amazon.de

The average market price for the keyword ‘collagen pulver’ is €28.

Below is a sales chart for a product:

Observing the chart, you will see that the price reduction periods had a significant impact on sales. After two months (July–August 2024) of being unable to sell, the Seller started lowering prices from September 2024. From January 2025, once the product was no longer being periodically discounted, sales declined continuously. (1.3.2025)

-> This Seller had to continuously lower prices to make sales, because the original selling price was higher than the market average.

2/ Cost Structure in the Selling Price

In this article, Eazyppc also wants to emphasize Landing Cost – this cost should range from 25% to 33.33% of the selling price to ensure good product quality and a reasonable profit margin.

Based on the average market price, you can quickly calculate the appropriate Landing Cost to optimize your profit margin.

Note:

When researching the market and planning your business, monitoring new competitors is very important -> check new Sellers with fewer than 50 or 100 Reviews to see what price level they are setting for their products. This reflects the degree of price competition in the early stages of new ASINs.

-> The reason is that many Chinese sellers tend to aggressively discount their prices when they first launch, selling at a loss or breaking even in order to quickly achieve a high organic rank on the first page of Amazon — causing the overall price floor of the market to drop sharply.

3/ If a Seller Wants to Improve Their Product

Product improvement is a promising strategy, but to optimize its effectiveness, you can:

• Test the product with a small batch to evaluate performance:

Market Test Effectiveness = Advertising Performance & Conversion Rate

By doing this, you can flexibly adjust your product and pricing strategy before scaling up your business.

Tools to Help Calculate Amazon Costs

• Amazon Profitability Calculator
• Helium 10 Profit Calculator:

• Calculate Revenue by ASIN in Seller Central: