When you start selling a new product, it might be challenging to set up a price that would be just right - not too high, so it won't scare your customers away, and not too low, as you still need to have a profit.
That is why we have calculated the Suggested Retail Price to give you an understanding of how much you could be earning from your sales.
How do we calculate the SRP?
First, we search through sources such as Jungle Scout and gather all of the data on products that are relevant based on keywords they contain within their name or description.
We analyze the market size, audience, and average rating - what is the demand for a product?
Next, we figure out how many sellers there are in total by looking at similar products sold on Amazon already. We only look at products that make actual sales, not simply listed.
Finally, we put all this data into our formula and get the Suggested Retail Price.
Shopify has a great article explaining how different prices can be calculated independently.