Amazon price skimming is one of the versatile pricing strategies employed by sellers on the platform. This strategy involves initially setting a relatively high price for a product, often a higher-priced product that may offer unique features or benefits. The rationale behind this approach is to capture the segment of customers who are willing to pay a premium for early access or exclusivity. To successfully implement Amazon price skimming, sellers should closely monitor competitor prices and assess market demand. By initially pricing a product higher, sellers can maximize their profitability from those willing to pay a premium. As demand stabilizes or competitors enter the market, sellers can then adjust prices based on comparable prices and the evolving competitive landscape. Moreover, production costs, shipping prices, and other factors play a crucial role in determining the initial selling price. It's important for sellers to strike a balance between setting a premium price and ensuring that it remains competitive given the value proposition offered. Effective inventory management also contributes to the success of this strategy.