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Using Amazon automated pricing you increase your profit. Check more in the article what is Amazon repricing, and how you can use it in your business?
Setting perfect price matters. You can have the best listing in the world, but if you overprice or underprice your product, you will most likely lose money, because in the majority of cases your shopper is looking for a high-quality product for a bit less than the average price. If you price your product too low, they would wonder why and suspect poor quality.
On Amazon.com, pricing is one of the most powerful tools to boost sales. With the pricing strategy, taking into account supply and demand, you can override your competition and succeed in your trade. All sellers know that and follow market indicators influencing the price for the goods in their product category.
There are a lot of factors influencing prices, this is why millions of price changes happen every day on Amazon. Changes in the price of goods are called repricing.
What Is Amazon Repricing?
Amazon repricing is the changing of the prices of products on Amazon’s marketplace. Sellers are changing prices quite often depending on their strategy, certain Amazon events, like Amazon Prime Day, Black Friday, or Cyber Monday, to get rid of the ‘sitters’ in stock, not saying about the competition, which is the main reason driving price fluctuations on Amazon.
What Factors Influence Amazon Repricing?
There are a lot of reasons why prices can change.
First and foremost, it’s competition. There are hundreds of millions of items sold on Amazon by millions of sellers. Therefore, the only way to reach your potential customer is to increase visibility and win the Buy Box. The best price will help.
The highly sophisticated level of the ranking system applied by Amazon matters as well. Depending on the seller’s repricing strategy, seller feedback, ratings, FBA or FBM fulfillment methods may influence the final price as well.
Changes in the cost of goods and other expenses, like shipping, etc., influence the price as well.
Since the price is a part of the seller’s marketing strategy, they can choose, for instance, premium pricing strategy, competition-based pricing, skimming, penetration, or another type of pricing strategy, which also influences the price lever the seller sets. If you are interested to know how to price your products on Amazon, have a look here.
And last, but not least factor is that there is a lot of different automation repricing tools on the market, and the majority of the sellers automatically reprice their products.
What Are the Types of Repricing?
There are two types of repricing: Amazon sellers apply manual type, when they define and change the prices for their products manually, or use Amazon repricing software, which automatically detects all factors influencing the price and sets the price accordingly.
What Is Manual Repricing?
Manual repricing is the process of managing your Amazon repricing strategy manually, in your Amazon Seller Central, or by means of Amazon repricing software. In this case, you will need to go through all listings one by one, check boxes, make calculations, and enter results. This is quite a tiresome process, and, on top of that, you need to make sure that you’re not making mistakes. If you apply this type of Amazon repricing strategies, make sure that you check everything thoroughly so that you don’t end up selling at a loss.
What is Automated Repricing?
Amazon automated repricing is an Amazon repricing tool, a software, that sellers can set to automatically change prices on their Amazon products depending on the selected pricing strategy. This can be winning the Buy Box, or selling a preset number of units within a certain time span.
As soon as the strategy is defined, Amazon FBA repricer makes a market assessment, including all important competitor metrics, and makes corresponding price changes.
What Are the Automated FBA Repricing Strategies?
When using repricing automation, you need to set minimum and maximum prices, cut off the competition dropping prices, consider shipping expenses and the product’s condition, and more.
Automated Repricing Strategies Are as Follows:
1. Set Minimum Prices: make sure that the software you use doesn’t apply the figures below the lowest price you’ve set; set prices based on minimum desired profit;
2. Set Maximum Prices: calculate your scenarios with maximum profit margin;
3. Cut off the competition that is dropping prices: exclude competition that drives your price down; don’t compete by underpricing;
4. Consider shipping costs: don’t forget to include shipping expenses when you reprice;
5. Consider product’s condition: when selling second-hand inventory, ensure that the price is not higher than that on the new items;
6. Reprice if you're the stand-alone merchant on the listing;
7. Win the Buy Box.
How Does FBA Repricer Help Sellers?
Amazon automated repricing helps seller customize their repricing to a selected strategy, this way facilitating who exactly they want to beat the competition. You can also make your data more exact and consistent, avoid errors, and grow your profit margins.
Amazon repricing tool helps you win the Buy Box, which is a tricky goal. Amazon pricing tool would process all market data and set processes according to the selected strategy.
Finally, it frees up your time to do more creative things.
Advantages of Automated Repricing on Amazon
If you use a free Amazon repricer, it gives you a number of advantages. Same as any other software, free Amazon repricer can take into consideration many factors, analyze them fast, and save your time.
Automated repricer facilitates:
- Computer-based analysis;
- Eliminating risks of human error;
- Short reaction time to competitor changes;
- Efficiency and accuracy;
- Saving your time;
- Exact tailoring of your price according to the selected strategy;
- Increasing visibility;
- Increasing chances of winning a Buy Box;
- Giving additional competitive edge.