INTERNATIONAL AND EXPORT MARKETING

Pricing Strategy: For our Export Products

Resource person: Ma’am, Aysha Qayyum

Program: MBA 1.5(Evening)

Submitted By: ID#

Asad Ullah F2019273008
Fasih Abbas F2019273035
Umar Farooq F2019273016
Aleem Inam
F2019273013
Muhammad Sheraz F2019273012

Group: 13th
Every seller’s goal on Amazon is to make as many sales as possible. There are so many factors
that influence a customer to purchase your product: where your products rank among keyword
search results, your review count and rating, whether your listing features quality
images and informational copy, shipping speed, and of course, your product’s price all figure
into the decision to buy. 
Having the proper pricing strategy on Amazon for your private label brand is crucial. With the
private label method, you’re not competing for the Buy Box as you would using retail
arbitrage or wholesale methods, but you are competing with the other products within the search
results. Priced too high, your product may not entice customers—they’ll opt for your
competitors’ relative affordability. Price your product too low, and you may start a pricing war
with your competitors—sending both the value of your product niche and your own profitability
on a downward spiral.
How do we price items on Amazon?
Competitively pricing items on Amazon isn’t as simple as it seems. The logic on many
marketplaces is: if sales are high then the prices get raised, if sales are low then the prices get
lowered. However, Amazon’s algorithm is very complex and cutting your margins through price
reductions doesn't always improve your position on the platform. That is why it is paramount to
understand the various differences in pricing and the various pricing strategies.
There are two types of prices on Amazon that any seller must be familiar with, these are the item
price and the total price.
Item price is the cost of a product only. This is the price customers will see minus shipping costs
and any other factors that may affect the total price.
Total price or landed price is the price with everything included - this is what the customer pays
at the end of the purchasing process. The following are included in the total price:

 Shipping and handling charges

 Discounts, rebates, or special sales/promotions
 Shipping method
 Business practices, such as any reduction or elimination of shipping charges on an order,
or of any other order-related fees and expenses
 Low-price guarantees
We Will Do Manual Repricing on Amazon In both UK and Germany Market
 As a seller, you can choose to reprice yourself. This involves changing the price manually
through Amazon Seller Central - or via other sites should you be managing your products
through a third party.
This will only work for sellers with a few products, as it is time consuming. However, it does
give you a clearer understanding of your own and your competitor’s products and pricing.
 Pros:

 Complete control
 Hands on approach makes it easier to understand your own products and your
competitors

Cons:

 Only useful for smaller product catalogues

 Highly time consuming
 Depending on your experience, you may miss things

Our Pricing for Both Markets:

Penetration strategy is when you place prices lower than competitors to gain market share. This
is commonly used by new brands or existing brands releasing new products. In most cases, this is
done in the form of a promotion, with prices rising after objectives are reached. This strategy is
not profitable in the long run. However, it can help to get the Buy Box in the short run and then
generate interest in your specific product through brand loyalty afterwards. Due to Amazon not
necessarily giving the Buy Box to the cheapest option, this strategy tends to work better for more
unique products on the platform in terms of pricing and design.
For our product which is a leather belt we will consider cost plus pricing and penetration pricing
strategy.
In cost plus pricing we will add up the costs which incurred from the purchasing of raw material
and then finishing our product and delivering it to the consumer and will just add a handsome
amount of our desired profit ratio and start selling the product using amazon platform.
There is also another pricing strategy which we can opt is penetration pricing strategy in which
we will observe the price range being offered by our competitors and we will set a competitive
price as our main aim is to offer low prices for our leather belts so that we can excel in the
market and offer low priced belts that our customers can easily afford to buy and we can able to
develop a strong and appealing market in both the countries.