Amazon Product Pricing Report 2024

Introduction

Amazon’s vast and dynamic ecommerce marketplace functions as an intricate global ecosystem, facilitating interactions and transactions among products; brands, retailers, and sellers; and consumers worldwide. Among the most complex aspects of that ecosystem is product pricing. It’s also one of the most important for businesses that sell on Amazon: A better understanding of pricing trends and variations in pricing strategies is helpful for brands eager to optimize their revenue. Based on an analysis of more than six million data points from Jungle Scout’s industry-leading Amazon product database, this report aims to arm Amazon sellers, brands, and retailers with actionable insights into product pricing trends.

Key insights

In 2023, product prices on Amazon were less volatile (and lower) than the previous year. But this trend may already be shifting: The number of categories whose average product price increased during the first quarter of 2024 was four times higher than the year-ago quarter.

High demand commands higher prices. Even around popular sales events like Prime Days, Black Friday, and Cyber Monday, best-selling products are less likely than others to drop in price. In a sampling of 100 best sellers from five separate categories, about two-thirds experienced year-over-year price fluctuations of less than 10%.

Brands are still coping with consumer spending caution. As a result, those selling luxury, big-ticket, and non-essential products may be feeling more pressure to drop prices to raise sales. Products like electronics and appliances have seen drops in average product price as high as 50% over the past two years, while prices in categories like Grocery continue to increase.

Factors that Affect Pricing

Some factors affecting pricing on Amazon are universal — applicable to many marketplaces and rooted in basic economics. Others are unique to Amazon’s ecosystem, an intricate web of supply, demand, competition, algorithms, and outside influences working in tandem to impact product prices in varying ways.

Supply and demand

Fundamental to any market, the law of supply and demand is, in general, the main driver of product pricing. Prices for products in high demand, particularly when they’re in limited supply, generally increase. Conversely, if there’s an oversupply of a product and limited demand, sellers often lower prices.

Competition

The Amazon marketplace is extremely competitive. Sellers often adjust their prices in response to competitor pricing. This can lead to price wars where sellers continually undercut each other. Products with many sellers offering the same or similar items typically have more competitive pricing than niche products with few sellers.

Seasonality and trends

Seasonal products, like Christmas decorations or summer beach toys, will see price fluctuations based on the time of year. Trending products, such as those seeing a rise in popularity due to social media or other outside influences, often command higher prices due to increased demand.

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Shifting Amazon seller fees

The costs associated with selling products on Amazon can change over time as the company adjusts fee structures and policies. The impact of Amazon’s introduction of two new FBA fees in 2024 is still unfolding.

Algorithmic pricing

Amazon sellers have the option to use repricing software to automatically adjust their product prices based on predefined rules or competitive analysis. This can lead to frequent price changes, sometimes several times a day.

Brand power, customer reviews, and ratings

Products with higher ratings and positive reviews, as well as products associated with established, strong brands, can often command higher prices because they’re perceived as higher quality or more reliable than lower-rated products or lesser-known brands.

Amazon’s Buy Box

The Buy Box, where customers can add items for purchase to their cart, is not granted to every seller of a product. Amazon’s algorithm determines which seller gets the coveted spot, and price is a significant factor at play. As a result, sellers are motivated to competitively price their items to win the Buy Box.

External economic factors

Inflation, tariffs, and changes in currency exchange rates can influence the cost of goods and, thus, selling prices. For example, if tariffs are imposed on certain imported goods, sellers might increase prices to compensate for the higher costs they incur.

Retail holidays/shopping events

Shopping events like Amazon Prime Day, Black Friday, and Cyber Monday also have a significant impact on product prices. During these times, Amazon and its third-party sellers offer deep discounts on a wide range of products, often marking some of the lowest prices seen throughout the year.

Tracking product price changes over time

Analysis of historical product price data for this selection of five of the most popular products on Amazon across a series of retail events can be used to assess the impact of a number of the above factors. In contrast to price fluctuations seen at a larger scale, the cost of each of these Amazon best-sellers from five different product categories barely budged over the past year. Viewed individually — and with some knowledge about consumer trends and demand — a few clear storylines emerge.

Disposable Baby Diapers

For example...

This grill brush from Kona — among the top 10 best-selling products in Amazon’s Patio, Lawn & Garden category — was at its highest price of the year in August and second highest in May. In two of the most popular months for outdoor cooking and barbecues, demand for this product was likely at its highest during those same time windows.

This data also reveals relatively few pricing changes during Prime Day events or during Black Friday and Cyber Monday in 2023, indicating that sellers of these highly popular products are less likely to drop prices to stimulate sales.

Further analysis of pricing data for this selection of products also shows how other factors influence prices. Items like diapers, pet treats, and personal care products are not susceptible to seasonality the way that holiday-themed, weather-dependent, or frequently gifted products are. Brands like Pampers, Crocs, and Neutrogena also all have a high degree of brand recognition and consumer trust, likely leading some shoppers to opt for them even if less recognized competitors offer lower prices.

Crocs Unisex-Adult Classic Clogs

Pampers Swaddlers

Disposable Baby Diapers

Kona Safe/Clean Grill Brush

2023 Prime Day prices

2023 Prime Big Deal Days prices

Black Friday/Cyber Monday 2023 prices KEY

TEMPTATIONS Classic

Crunchy and Soft Cat Treats

Neutrogena Makeup

Remover Cleansing Face Wipes

Category Trends

This chapter provides a high-level overview of trends based on average product price data for each of Amazon’s product categories. Insights gleaned from this wide-angle lens provide context for evaluating the product-level data presented in Chapter 3.

Changes in average product price by category

Analysis of average product price data for listings in each of Amazon’s product categories over the past three years provides broader context for understanding pricing trends. In 2021 and 2022, as the U.S. inflation rate reached record highs before retreating to a more normal number, the average price increased across the majority of Amazon product categories. Throughout 2023, a more equal number of increases and declines were seen.

Tracking the average product price for each Amazon category over a longer period of time (in this case, 24 months) shows a wider — and, naturally, much different — view of pricing trends. Although inflation has declined from its recent peak in 2021, many consumers have not recovered a feeling of financial security. This continues to impact demand as shoppers pull back on extraneous or luxury spending to balance their household budgets. As a result, sellers of large, costly, or nonessential items — such as electronics, appliances, and even toys — have more incentive to lower prices to gain customers.

Overall changes in average product price by category

Appliances

Arts, Crafts & Sewing

Automotive

Baby

Beauty & Personal Care

Clothing, Shoes & Jewelry

Electronics

Grocery & Gourmet Food

Health & Household

Home & Kitchen

Industrial & Scientific

Musical Instruments

Office Products

Patio, Lawn & Garden

Pet Supplies

Sports & Outdoors

Tools & Home Improvement

Toys & Games

Video Games

INSIGHTS

Just three categories experienced average product price increases last year:

• Patio, Lawn & Garden

• Tools & Home Improvement

• Video Games

Among the rest, which experienced declines, three categories saw decreases of more than 20%:

• Office Products

• Clothing, Shoes & Jewelry

• Appliances

*Data reflects percentage change in each category’s average product price from January and March 2024 (Q1), January 2023 to January 2024 (2023), and January 2022 to January 2023 (2022).

Identifying trends

Examining average monthly product prices over a full year highlights the impact of seasonality on certain categories, as shown in this line graph for five popular Amazon categories*. Notably, the Patio, Lawn, & Garden category peaked in April and hit its lowest in February, while the others experienced less variation. For a deeper understanding of the key factors shaping the market in these categories, refer to the reports linked in the key.

Average product prices by category and month in 2023

*Our Best & Worst Amazon Categories Report breaks down the numbers — sales and revenue, top brands by market share, and more — revealing trends, challenges, and opportunities for sellers in Amazon’s most and least popular categories.

Product Pricing Trends

This chapter provides insights from our pricing analysis of 100 of the best-selling products on Amazon over the 12-month period that ended on March 30, 2024.

Best sellers spotlight

Compared to our analysis of changes in average product price by category, which found a larger number of declines than increases in 2023, price changes experienced in this sample selection of 100 of the most frequently purchased products on Amazon were more evenly split. Just over half (51%) were lower in price, 2% were flat, and 43% ended the period at a higher price.

What follows is a detailed look at a cross-section of the products – taken from five popular Amazon categories — included in this analysis.

In Amazon’s Baby category, pricing data at the category level shows the average product price declined 4% year over year, and our analysis at the product level mostly mirrors that indicator. Among these five best-selling products, for example, prices remained relatively stable throughout the year.

Average product price by month

Beauty & Personal Care

Category-level data for Beauty & Personal Care products showed a 10% decline in the average price per product over the past year. Our sample set of best sellers provides a more detailed view into this category and tells a more nuanced story; while the prices for most of these products declined slightly year-over-year, a few outliers—for example, COSRX’s popular Snail Mucin skin care product—saw a more significant change.

Average product price by month

Home & Kitchen

The average product price in Amazon’s Home & Kitchen category barely changed in 2023, declining less than 1% year-over-year, following an overall increase of about 10% over the same period in 2022. The following five best-selling products in the category experienced more varied changes over the past year.

Average product price by month

Arts, Crafts & Sewing

The average product price in the Arts, Crafts & Sewing category on Amazon declined 7% in 2023, after increasing 15% in 2022. Products in our sample set of best-sellers, on average, declined by an even larger amount year-over-year from March 2023 to March 2024 , with two items — Betem’s Acrylic Paint Pens and the popular Redtwo Bracelet Making Kit — experiencing price dips of more than 30%.

Average product price by month

Pet Supplies

A category that’s often deemed as essential by consumers, steady demand for Pet Supplies means sales are less sensitive to price increases. The average product price for this category has been relatively stable over the past 24 months, declining just 3%.

Average product price by month

Purina FortiFlora Probiotics for Dogs

ChuckIt! Ultra Ball

Dr. Elsey’s Premium Clumping Cat Litter

Pricing Strategies for Sellers, Brands, and Retailers

Product pricing in 2024

Less pricing volatility over the past year is good for Amazon brands and retailers, but as this report illustrates, these trends are dynamic and ever-changing. In 2024, the continuing impact of inflation, coupled with increased seller fees from Amazon, creates an environment rife with potential for fluctuation.

Keeping up-to-date and aware of trends and shifts in the factors that influence pricing is a crucial part of success and profitability on Amazon. Fortunately, there are plenty of ways to do that. Jungle Scout’s quarterly consumer trends reports, for example, track consumer sentiment, spending levels, and behavioral elements that can help inform the best pricing strategies. Detailed market insights from Cobalt, published monthly, provide deep dives into trends impacting product categories across Amazon.

At-a-glance: Key product pricing-related stats

These data points from Jungle Scout’s 2024 State of the Amazon Seller Report and Q1 Consumer Trends Reports highlight this year’s product pricing environment.

1. Increasing ad costs

2. Increasing shipping costs

3. Increasing cost of goods

4. Increasing competition driving pricing down

5. Rising storage fees

Top 5 external challenges for Amazon sellers, brands, and businesses of consumers’ spending habits were impacted by inflation in Q1

The number of sellers, brands, and businesses whose Amazon profits increased YOY rose 25% in 2023.

of sellers are worried about inflation in 2024 of people look for the product with the lowest price when shopping on Amazon - it is the number one most influential factor in purchase decisions. are worried about their finances say their household income is unstable

Tips for a successful pricing strategy

Beyond staying informed on market dynamics and wider economic factors, you can use these tactics to define and execute a solid pricing strategy.

Use different pricing strategies for different segments of your product line.

Premium products in your catalog can maintain higher margins, while more competitive pricing can help increase sales of new or non-premium items.

Use Amazon’s Subscribe & Save option.

If you sell products that consumers often re-purchase, leveraging Subscribe & Save can encourage sales by offering discounts and increase the lifetime value of your sales.

Analyze your customers’ buying patterns.

Use your findings to create tailored bundles and promotions based on products that consumers frequently buy or browse together.

Use A/B testing to gauge price sensitivity.

Run a split test comparing different prices over several weeks to find the price point that maximizes sales and revenue.

Don’t offer the lowest price in your market.

Keep prices strategically above your lowest-priced competitors to avoid profit erosion in a race to the bottom. As a rule of thumb, stick within the price band that accounts for 50% or more of your market’s revenue.

“There’s no one-sizefits-all strategy – the right price largely comes down to your product’s quality, your production costs, and what customers are looking for, all of which can vary from your competitors. That said, there are a few datadriven techniques that will help you arrive at the best price for your product.”

BRIAN CONNOLLY

Ecommerce expert and owner of Shore Boats

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About the Report Methodology

Findings in this report are based on analysis of Jungle Scout data collected at the category level for a two-year time frame from July 2021 through March 2024, and at a product level from March 2023 through March 2024 in the U.S. marketplace. At the category level, it includes analysis of daily and monthly average product prices from 19 of Amazon’s product categories. At the product level, findings are based on analysis of daily pricing data for 100 best-selling products on Amazon across eight popular categories: Arts, Crafts & Sewing; Pet Supplies; Beauty & Personal Care; Home & Kitchen; Clothing, Shoes & Jewelry; Health & Household; Baby; and Patio, Lawn & Garden.

Using the data

We invite you to explore Jungle Scout’s 2024 Amazon Product Pricing report and to share, reference, and publish the findings with attribution to “Jungle Scout” and a link to this page

For more information, specific data requests, or media assets, or to reach the report’s authors, please contact us at press@junglescout.com