What is the Best Pricing Strategy When Launching a New Product on Amazon Australia?

TL;DR

• Launching with the right price on Amazon Australia is critical to attract buyers, build trust, and maintain profit margins.

• Consider all local factors like GST, FBA fees, competitor pricing, and Aussie buyer psychology before setting your launch price.

• Use pricing strategies like limited-time deals, coupons, and promotional discounts to gain visibility and sales without eroding brand value.

• Leverage Amazon tools like Pricing Health and Automate Pricing to stay competitive and win the Buy Box without manual effort.

• Avoid common mistakes like underpricing without knowing breakeven, ignoring FBA/GST costs, or blindly copying US pricing strategies.

• Partnering with Amazon consulting experts can help you build a data-driven pricing strategy tailored to the Australian market.

Launching a new product on Amazon Australia?

Pricing it wrong could cost you visibility, sales, or worse, your margin. Many sellers rush to list without a clear pricing strategy, only to find themselves undercut, unprofitable, or completely ignored by buyers. 

In a growing marketplace like Amazon.com.au, where competition is lower but buyer expectations are high, getting your price right from the start is crucial. Unlike other platforms, Amazon’s pricing game involves more than just matching competitors. 

You also need to account for FBA fees, GST, shipping costs, and how your offer looks to an Aussie shopper. When planning your Amazon product launch, remember that a price that’s too low may hurt your brand image, while one that’s too high can slow your momentum.

This guide breaks down what goes into a winning pricing strategy, what tools Amazon gives you to stay competitive, and what common mistakes to avoid so your launch price helps you grow, not hold you back.

Factors to consider before setting your launch price in Australia

#1 Competitor pricing on Amazon AU

Before setting your launch price, study what similar products are selling on Amazon Australia. Look beyond just the cheapest options and check what top-ranking competitors with strong reviews are charging. This gives you a realistic price range that buyers are willing to pay.

If your product is new with no reviews, pricing slightly below similar items can help gain traction. Just be sure your offer still looks valuable, not cheap, especially in a market where trust and presentation matter.

#2 Product size, weight, and FBA fees in Australia

Before setting your launch price, always factor in your product’s size and weight; these directly impact your FBA fees in Australia. Larger or heavier items attract higher storage and fulfillment costs, which can quickly eat into your margins if not priced correctly.

Use Amazon’s FBA calculator to estimate costs accurately. A price that looks competitive on the surface might leave you with little to no profit if logistics and fulfillment aren’t fully accounted for from the start.

#3 GST implications and landed cost calculations

Before setting your launch price on Amazon Australia, factor in GST and your landed cost, the total expense of getting your product from the supplier to Amazon’s warehouse. This includes manufacturing, shipping, customs duties, and FBA fees. 

If you’re GST-registered, remember to include GST in your retail price and consider input tax credits. Misjudging these costs can leave you with little to no margin. Accurate pricing starts with knowing exactly what each unit truly costs you.

#4 Buyer psychology and local expectation

Australian buyers are value-conscious and often compare options before purchasing, especially from new or unfamiliar brands. A high launch price without reviews may deter clicks, while a very low price can raise doubts about quality. Local shoppers expect fair pricing, clear savings on deals, and fast delivery.

Your launch price should balance trust, perceived value, and urgency. Matching how Australians shop, calm, comparison-driven, and quality-focused can give your product the early traction it needs.

Common pricing strategies used by successful Amazon AU sellers

1. Price newer products with no reviews lower

One of the most effective strategies when launching a new product with no reviews is to price it slightly lower than competitors. Since Australian buyers rely heavily on reviews as social proof, they’re less likely to purchase from a product with no feedback unless there’s a strong incentive price being the most compelling one.

Offering a more affordable entry point helps reduce buyer hesitation and encourages that all-important first purchase. Once you start collecting reviews and building credibility, you can gradually increase your price to reflect your product’s value.

This approach isn’t about undervaluing your product, it's about strategically lowering the barrier for early buyers. A limited-time introductory price or launch deal can also make your listing more attractive in search results and boost conversions. 

Used wisely, this pricing method builds momentum, improves your Amazon product ranking, and lays the groundwork for long-term profitability once your product has social proof.

2. Offer a deal to stimulate sales

One proven strategy used by successful Amazon Australia sellers is offering limited-time deals to drive visibility and sales during a product launch. Deals create urgency, attract deal-hunters, and give shoppers a reason to choose your product over similar listings, especially when you’re still building reviews. Amazon offers two types of deals:

• Lightning Deal – A time-sensitive promotion that runs for 4 to 12 hours, often featured on the Amazon Deals page. These are great for generating a quick spike in traffic and sales.

• Best Deal – A longer promotion that can run for several days, offering more sustained exposure across browsing and search pages.

In both cases, Amazon applies the deal automatically when a shopper adds the product to their cart, making it easy and seamless for the buyer. For new products without reviews, offering a compelling deal can be the push customers need to take a chance on your listing. 

Just be sure to factor in the cost of the discount when calculating your margins. A well-timed promotion not only increases your sales velocity but also helps your product climb in organic rankings, setting the foundation for long-term success.

3. Create coupons to increase visibility in the Amazon store

One of the most effective pricing strategies used by successful Amazon AU sellers is leveraging coupons to stand out and drive early sales. Coupons give customers either a percentage off or a fixed dollar amount off a single product or bundle. 

They not only make your offer more attractive but also improve visibility across multiple placements on Amazon. As part of your Amazon marketing strategy, activating a coupon can help your product appear on the Amazon Deals page, in search results with a green tag, and on your product detail page, making it easier for shoppers to notice you, especially if you’re new or don’t yet have reviews.

This subtle incentive can improve click-through rates and nudge hesitant buyers to complete a purchase, without drastically cutting into your margins. You also maintain pricing flexibility while still offering a visible benefit. 

For best results, pair your coupon with a strong main image, competitive base price, and fully optimized listing. It’s a simple yet powerful tool to gain momentum during launch.

#4 Do a promotion to stand out from the competition

One of the most effective ways to grab attention in a competitive marketplace like Amazon.com.au is to launch with a strong promotional offer. Successful Amazon AU sellers often use limited-time promotions to stand out, drive traffic, and build momentum for new listings.

Running a promotion like a percentage off, buy one get one free, or a social media-exclusive discount code can help entice new customers to try your product and discover your brand. These offers create urgency, encourage quick decision-making, and give shoppers a reason to choose your product over more established competitors.

In the early stages, your product won’t have reviews or ranking power, so price-driven incentives become a critical lever. Amazon also gives added visibility to products with active promotions through badges and filters, which can boost click-through rates and improve organic placement.

The key is to run promotions with a purpose. Set a timeline, track conversions, and ensure you still protect your margins. Pair promotions with optimized listings and strong visuals for maximum impact. When done right, promotional pricing not only boosts early sales but also builds brand awareness and customer loyalty from day one.

Why is it important?

As your Amazon store grows, strategic discounting becomes more than just a launch tactic; it turns into a valuable tool for long-term growth and inventory control. By offering well-timed discounts, you can accelerate traction for new product launches, clear slow-moving or excess inventory, and introduce your storefront to first-time buyers who may not have discovered your brand otherwise.

For instance, running limited-time deals or using Amazon coupons allows you to boost visibility in competitive categories and get featured on high-traffic areas like the Amazon Deals page. 

According to Amazon Seller Central, products with coupons see a higher click-through rate and increased conversion, particularly when paired with strong visuals and competitive pricing.

Discounts also play a key role in keeping your inventory healthy. If you're approaching FBA storage limits or holding seasonal stock that needs to move, a temporary price drop or percentage-off coupon can help free up space while maintaining cash flow.

Beyond short-term gains, discounts are a smart way to win over new customers. Once a buyer tries your product at a promotional price, they’re more likely to return, especially if your product meets or exceeds expectations. This creates opportunities for brand loyalty and cross-selling within your Amazon Storefront.

Amazon tools  for the best pricing strategy for your new product launch 

1. Pricing Health Tool 

Pricing your new product right is key to gaining traction, visibility, and sales, especially in the early days of your Amazon Australia launch. One of the most underused yet powerful tools for pricing decisions is Amazon’s Pricing Health dashboard, available directly in Seller Central.

You can access it by hovering over the Pricing tab in your Seller Central menu and selecting Pricing Health. This dashboard gives you real-time insights into how your pricing compares to the rest of the marketplace, and it flags issues that might be limiting your product’s visibility or eligibility to win the Buy Box (Featured Offer).

There are two key sections in this tool:

• Inactive Offers: This tab shows listings that have been deactivated due to potential pricing errors, either being too high or too low compared to the competitive range Amazon considers acceptable. You’ll also see suggested actions to fix these issues, helping you get the listing back online quickly.

• Pricing Opportunities: This section lists your current offers that are not winning the Featured Offer, along with those that are within 5% of the Featured Offer price. It gives you pricing suggestions to make your offer more competitive, without completely undercutting the market.

For Amazon AU sellers, this tool is especially valuable since the local market is still developing, and pricing trends can shift quickly. Using Pricing Health regularly helps you avoid common launch mistakes like overpricing without reviews or underpricing below your breakeven.

It’s not just about matching the lowest price, it's about staying visible, competitive, and profitable. Use this tool as part of your ongoing pricing strategy to maintain your product’s performance and grow sustainably.

2. Automate Pricing tool 

When launching a new product on Amazon Australia, one of the smartest moves you can make is automating your pricing. Amazon’s Automate Pricing tool is a free, built-in feature designed to help sellers adjust prices in real time based on rules you set, keeping you competitive 24/7 without constant manual changes.

Instead of guessing how to respond to competitor price drops or trying to win the Featured Offer (Buy Box) manually, the Automate Pricing tool does it for you. You can choose from pre-defined rules or create custom pricing strategies based on your goals, whether it's staying just below your competitors, matching the lowest price, or maintaining a minimum profit margin.

What’s great for Amazon AU sellers is that this tool saves time and protects your pricing position even while you're sleeping. The tool monitors your listings around the clock and adjusts your price when competition changes, so you're always in the game without overspending time or resources.

You can also set up different rules for B2B and B2C pricing, helping you grow sales across customer segments. For example, you can offer better pricing to business buyers while still staying competitive with regular retail shoppers.

Automate Pricing is especially useful during launch phases when price competitiveness matters most. It lets you stay aggressive without underpricing or constantly babysitting your listings. Just set your minimum and maximum limits, define your strategy, and let the tool do the rest.

For selling products on Amazon Australia,  looking to scale efficiently, Automate Pricing takes the guesswork out of pricing, keeps you visible, and gives you more time to focus on marketing, reviews, and growth. It’s a simple, effective way to stay sharp in a competitive market.

Mistakes to avoid when pricing your product on Amazon.com.au

• Underpricing without knowing your breakeven point.

• Ignoring competitors in your specific category.

• Failing to factor in FBA fees, GST, and landed costs.

• Not adjusting your price post-launch based on performance.

• Pricing is too high without reviews or brand recognition.

• Using the same pricing strategy as Amazon US without localisation.

• Over-relying on discounts without a clear profit strategy.

• Forgetting to monitor competitor price changes regularly.

Wrapping up 

Getting your pricing strategy right during a product launch on Amazon Australia is more than just setting a number, it's about laying the groundwork for sustainable growth. From FBA fees and GST to buyer psychology and competitor trends, every detail matters. 

Tools like Automate Pricing and Pricing Health help you stay competitive without constant guesswork. Launch with a smart offer that builds trust and traction, then adjust based on performance. 

For best results, work with Amazon consulting experts who understand the AU marketplace and can help you develop a data-backed, profit-driven pricing strategy. With the right support and insights, you’ll not only stand out during launch but stay ahead in the long run.