Well, the quantity of prospective customers is the decisive factor for those considering whether or not to start selling on Amazon. To be more precise, there are 197,000,000 Amazon visitors every month. But how do you rise to the top of Amazon's best-selling list? What can you do to stand out in such a crowded marketplace? A good pricing strategy is definitely a step in the right direction.
This is where repricing comes in. Let's look at why this is the case.
What Is Amazon repricing?
Repricing is the process by which sellers on Amazon's marketplace adjust the price of their products. Many sellers compete for each listing's product sale.
Sellers that do not price their products competitively may be unable to sell them or acquire the Buy Box. If you consider manually monitoring each price, you should accept the fact that it is inefficient owing to the infinite number of sellers and products. The key to increasing sales and profits on Amazon is to automate your item price. In other words, Amazon repricing tools assist sellers in maintaining constant price competitiveness.
Explaining repricing software
To obtain the desired Buy Box, Amazon sellers are continuously altering their product prices. Repricing software enables E-commerce sellers to automatically raise or drop their rates in order to outbid their competitors for this lucrative position. During preset time intervals, price adjustments are made automatically and immediately. Repricing is a fine art of balance. You don't want to lose money by selling things that are too cheap or miss out on the Buy Box by selling products that are too pricey, right?
Note: You should also ensure that your listings meet Amazon's rigorous requirements. If Amazon discovers that you are selling things on other marketplaces at a lower price, they may remove your listing.
The benefits of repricing software
Repricing software boosts your ability to price things competitively, allowing you to win the Buy Box more often. It can provide far more precision and data than a manual repricing method. Let's take a deeper look at the numerous advantages of automatic repricing software.
Win the Amazon Buy Box
90 percent of all purchases take place through clicking “Add to Cart”. It's no surprise that so many transactions happen in the Buy Box, where buyers can 'Add to basket' or 'Buy Now' with a single click.
The winner of the Amazon Buy Box is determined by an algorithm. Price, sales volume, fulfillment type, and feedback scores are all taken into consideration.
You won't have to worry about price using repricing software. Yours will be tailored to outperform your competitors at the best possible price, taking into consideration the level of competition you face.
Check out the SellerLogic repricer here.
Increase your profit margins
It's not simply about cutting prices with repricing tools.
A good repricer will alter your product's price to optimize earnings while keeping your Buy Box position if a rival runs out of supply. It may also change cost when you run out of an item or reset to your maximum level at specific times of the day.
1. Save time
Time is the most common reason for people to switch from manual to automatic repricing. Automated repricing frees up hours from your hectic schedule if you have a large number of SKUs. You'll have more time to focus on other aspects of your business.
2. Access vital data and insights
Repricing software can provide consumers with a wealth of information at a glance. These data give all you need to know to optimize your repricing strategy, from price changes to top rivals.
You'll also be able to see when you need a custom plan to beat the competition and win the Amazon Buy Box.
3. Improve your repricing strategy
Repricing software improves your pricing strategy by merging different data points. It considers the strength of your competition as well as the likelihood of your items being in the Buy Box.
It will also tell you when you should raise your pricing, such as during slow times or when a rival runs out of supply.
4. Speed up your strategy
When employing repricing software on Amazon, speed is crucial. The more time you spend in the Buy Box, the faster you can adapt to changes in the competitive environment. And the longer your product is in the Buy Box, the more sales you'll get!
As you can see, good repricing software can do a lot of work for you. You can decide how you want to reprice, but let’s take a closer look at the difference between the main three repricing methods.
Common repricing methods:
1. Manual repricing on Amazon
For your Amazon pricing strategy, this form of repricing necessitates the use of no software at all. It requires sellers to keep a close eye on their competitors' prices.
What are the disadvantages? Repricing on Amazon without software will eat up a lot of your time, as you can guess.
2. Static repricing on Amazon
Static repricing, also known as rule-based repricing, is a pricing strategy that entails using software to calculate the price needed to win the Buy Box and then automatically altering your product prices to that amount.
The Amazon repricer compares your pricing to those of your competitors and follows a single rule: underbid the competition at all costs. As a result, sellers are involved in price wars. Sounds disappointing, right?
3. Dynamic pricing
In the same manner as static repricing operates, dynamic repricing determines the price for the Buy Box. It then adjusts your pricing to that amount, gradually raising it until it reaches the maximum amount you may charge without losing the Buy Box.
This pricing strategy has the benefit of increasing your chances of being in the Buy Box while selling at the greatest potential price.
Apart from rich product information, repricing is one of the secrets to being successful on Amazon, as it helps you to better position your offers in the Buy Box, making them more desirable and visible to customers. With SellerLogic's Repricer for Amazon, you can increase your revenue. You'll always be one step ahead of the competition with dynamic pricing adjustments. By winning the Amazon Buy Box more frequently, you can grow your sales volume and turnover while maintaining the best pricing in a highly competitive environment. ____________________________
If you're in the process of updating your product pricing (or product information at large) to rise to the top of Amazon, a product information management (PIM) tool like Plytix PIM can help store all your data, so you don't lose anything.
Download our free white paper to learn more about PIM today!