Repricing is a huge buzzword in marketplace selling on sites like Amazon— and rightfully so. It has become virtually impossible for Amazon sellers to reprice their products manually due to the high number of competitors within the marketplace. Keeping up with hundreds if not millions of price changes a day requires the help of automation tools like repricing software. But how can sellers ensure they are effectively using a repricing technology? These four strategies help you get the most out of your repricer.
Set Minimum & Maximum Prices
Avoid any risk of profit margin loss by setting a minimum price. In fact, a repricer shouldn’t even begin to work unless all minimum prices are correctly entered into the system. Remember that a minimum price reflects a product’s landed price (the price including shipping). So be sure to include all shipping costs. Just as minimum prices eliminate the risk of losing profits, a maximum price gives your repricer a point to jump to, for maximizing profit when competition falls off, sells out, or pulls you too far downward. Many repricers do not require a maximum price to be set, but going the extra mile can really pay off!
Pick Your Competition
A common misconception about automated repricers is that they drop your price in order to get the sale. This is a completely avoidable circumstance. The “race to the bottom” can be sidestepped by excluding competition that would drive your price down. For example, if you’re an FBA seller on a certain product listing, excluding non-FBA sellers with lower seller ratings—which would most likely cause your price to drop—is one way to keep your listing’s price steady while still capturing sales.
Aim for the Buy Box
The Amazon Buy Box is the most coveted space for an Amazon seller. Sellers must make sure that several factors—including price—are up to the Buy Box requirements in order to be eligible for it. Among the top criteria, landed price (base price plus shipping), fulfillment method, shipping time, and seller rating, must be well established and maintained for the best chances at winning the Buy Box. Something worth noting is that regardless of these factors, any seller competing for the Buy Box must have already achieved Featured Merchant status.
Sync Your Inventory
By linking your ecommerce inventory software to your repricer, you can enable settings that may lead you to even more sales. For example, sellers can have items that have gone out of stock automatically begin repricing according to the current market value, once back in stock. This guarantees immediate reentry into the marketplace with a competitive listing price.
About the Author: Izabella De Souza is the Marketing Manager at informed.co where she oversees all campaigns and content curation. Izabella has published digital content in various industries for the last five years, and has taught undergraduate Communication at William Paterson University. In her free time she likes to travel around the world and indulge in interior design publications.