Strategy 1: Repricing
Repricing, with its purpose of undercutting the competition, is the most commonly used strategy by Amazon sellers. Either manually or with an automated tool, you can adjust the prices of your products to match the lowest amount at that time and adapt to all your competitors. As a result, you attract customers and give them a reason to choose you.
Strategy 2: Stable Pricing
If the repricing is for short-term, stable pricing has a long-term goal to build trust and a sustainable brand. The followers of this strategy keep the prices of products stable and close to the market value. However, this does not mean that you should not have exceptions during holidays, new product launches, stock clearance, and cross-selling.
Strategy 3: Value-based Pricing
With this strategy, Amazon sellers determine the price of a product based on its perceived value by customers. In this case, you don't act by taking into account the prices of competitors, but you rather choose the price for your product solely counting on the amount your customers are ready to pay. This strategy results in high prices and correspondingly high profits for those sellers who can persuade their customers to agree to it.
You can experiment with these strategies to find out which works best for you. But remember, your business objective is what should determine your main pricing strategy.