One of the most common mistakes new Amazon sellers make is launching with the final, ideal price from day one.
You’ve done the math.
Your profit margins work at $39.99.
So you go live with confidence…
…And then nothing happens.
No traffic. No reviews. No conversions.
This is why launching cheap is one of the smartest Amazon strategies you can use — especially in today’s competitive landscape.
Let’s break down why.
🚀 Why Price Matters Most During Launch
Amazon’s A9 algorithm rewards:
✅ Conversions
✅ Velocity
✅ Customer experience signals (reviews, low returns)
In the beginning, you don’t have any of those.
What you DO have control over?
👉 Your price.
A low price can:
✔️ Improve CTR
✔️ Increase conversion rate
✔️ Help you win the Buy Box (even for Sponsored Products)
✔️ Trigger Amazon’s “momentum loop” faster
📊 The Launch Funnel: What Cheap Pricing Improves
| Funnel Stage | Benefit of Low Pricing |
|---|---|
| Search Visibility | Better CTR vs. competitors |
| PDP Engagement | Lower price = reduced buying friction |
| Conversion | Faster sales → more rank |
| Review Rate | More units sold → more feedback |
| Ad Performance | Lower ACoS due to higher CVR |
💸 Why Your “Perfect Margin” Doesn’t Matter (Yet)
You might need to sell at breakeven or even a loss for the first:
- 50–100 units
- 7–14 days of campaign push
- 5–10 reviews
But if it helps you reach page 1 organically, the ROI is exponential.
You’re not discounting because your product isn’t worth more.
You’re discounting to play Amazon’s game.
📈 What the Algorithm Actually Wants
Amazon rewards listings that:
✅ Convert quickly
✅ Have high click-to-purchase ratios
✅ Maintain inventory
✅ Generate customer trust (through reviews)
Low pricing is a shortcut to performance data.
Once you earn:
- A velocity score
- Customer reviews
- Keyword indexing across your catalog
Then — and only then — you start scaling price strategically.
💡 How to Launch Cheap (Without Killing Your Brand)
Here’s how to do it smartly:
- Use Coupons, Not Just Lower Prices
- A $10 off coupon signals urgency
- Amazon shows coupon listings more prominently
- Set MSRP in Back End
- Use Amazon’s “List Price” field to show discount %
- This frames your launch price as a temporary deal
- Create a Launch-Only SKU or Bundle
- Test pricing without lowering core product value
- Communicate Value Through A+ Content
- Even at a lower price, make the product feel premium
⏱️ When to Raise Your Price
Monitor:
✅ Organic rank
✅ Number of reviews
✅ ACoS
✅ Unit session % and TACoS
Raise your price:
- After 10+ solid reviews
- Once you’re ranked top 20 organically
- If your ads are converting under target ACoS
Test small increases — $2 to $5 at a time — and monitor conversion rate closely.
❌ Mistakes to Avoid
❌ Starting with your “ideal” long-term price
❌ Waiting too long to increase pricing after ranking
❌ Not using coupons or lightning deals to spike velocity
❌ Changing price too frequently in early days
🧠 Real Seller Example
A DTC skincare brand launched a $49 face serum — great ingredients, amazing branding.
But they only got 2 sales in 14 days.
✅ They dropped to $29.99 with a $5 coupon
✅ Added “limited-time launch price” messaging
✅ Restarted ads with conversion-focused copy
Results:
📈 36 sales in 6 days
📉 ACoS dropped by 34%
💬 7 reviews within 2 weeks
🔼 Gradually increased price back to $44.99 by week 5
Final Thoughts
Your first goal with any Amazon launch isn’t margin — it’s momentum.
✅ Start cheap
✅ Build velocity
✅ Earn reviews
✅ Climb rank
✅ Raise price strategically
This isn’t about racing to the bottom — it’s about playing offense early so you can scale profitably later.