Amazon Sellers' Pricing Misconceptions: Thrasio Insights on Effective Price Points

Unit velocity, which is the rate at which products are sold, can be significantly influenced by an effective Price Point in conjunction with marketing spend. This combination is considered the number one lever for increasing unit sales on Amazon.

Visibility is crucial because no matter how competitive your pricing is, if customers can't see your product, they won't buy it. Visibility x price is the magic formula, meaning you need to ensure your product is visible through methods like Pay-Per-Click (PPC) advertising. Without visibility, even the lowest prices won't lead to sales, as customers typically don't look beyond the first page for deals.

To increase an ASIN's organic ranks, sellers should focus on increasing Units Velocity by using strategies such as adjusting the price point and leveraging PPC for better visibility. Deals or promotions can also be used to offer a lower price point and improve visibility. As units velocity increases, so does the Best Sellers Rank (BSR), which can lead to higher organic rankings and potentially elevated sales.

The text suggests a clear indication that lower price points can result in higher Conversion Rates (CVR). This is based on the screenshots provided, which show data from two different ASINs over past months, demonstrating that competitive pricing can lead to more conversions.