When it comes to strategic price management, sellers typically rely on automated repricing tools to continually make price changes based on how their competitors set prices. But what about an Amazon private label repricer, repricing tools for white label sellers, or a repricer for Amazon sellers who face no competition on their listings?
Until recently, this niche of sellers had no easy way to strategically automate their price changes to drive more sales with optimal margins. The best case scenario was manually repricing their listings based on gut instinct and hoping that a price change would result in a positive outcome. Needless to say, it was not an ideal selling situation.
Thankfully, Informed.co has been busy building a solution that uses a proprietary sales velocity algorithm to make private label repricing and white label repricing a reality for online sellers. Not only that, this new repricing tool can help any sellers with no competition on their listings, such as those who rely on Amazon product bundling to create unique listings.
Read on to discover how Informed.co’s private label repricer and white label repricing solution taps into our new sales velocity algorithm to open up new doors for online sellers to boost profitability, expand their product lines, and scale their businesses to levels they never thought they could reach — all while spending less time involved in tedious, day-to-day work.
The need for Amazon private label repricing
When you think of an Amazon repricer, you may remember that the repricing strategies you set are either based on custom rules you set up or algorithms that strategically reprice your products based on the competitive landscape of your listings.
Unfortunately for the massive group of sellers listing private label and white label items, the average Amazon repricing tool doesn’t account for items that inherently face no competition. Because there were no competitor listings on which these repricing tools could base their price changes, private label products were unable to reap the benefits of strategic automated repricing. That is, until now.
Because private label and white label products couldn’t be repriced in the usual way, where competing sellers’ prices and other Amazon seller metrics are taken into account when price changes are made, we needed to invent a new method to help private label sellers reprice their unique products.
And that’s how we decided to create our brand new sales velocity repricing algorithm.
How our Amazon private label repricer handles price changes
With competitor listings eliminated as an option for dictating how private label and white label listings’ prices change, Informed.co’s expert engineers built a brand new algorithm that focuses on one of the most vital metrics for private label and white label sellers: sales velocity.
That’s the metric that tells you how much of a product you’re selling over a set amount of time.
With our new sales velocity algorithm, Informed.co customers can now see their sales velocity per ASIN over the past 30 days on their Listings page. Once they get a snapshot of their current 30-day sales velocity, they can choose to either have our repricer target a higher, lower, or the same velocity moving forward.
Depending on the gap between your current velocity and the target velocity you input, our sales velocity repricer can step on the brakes or accelerate as needed in order for you to hit your goals.
The only data you need to input when creating a sales velocity repricing strategy for your private label or white label products (or a product that simply has no competition) are your min and max prices, and Informed.co’s sales velocity algorithm will do the rest. You can even set your min and max prices based on your target profit to make things even simpler.
Informed.co will use all the information available to find the ideal starting price point for driving enough sales to hit your target sales velocity, from your historic order volume and selling prices to any other offer data that helps inform our sales velocity algorithm.
If available, Informed.co will use your historic order volume and selling prices to calculate an initial price that has the best chance of moving inventory at your desired rate.
From there, a price change will be sent to Amazon once per day to help the algorithm gauge the effect it has on your velocity. Over time, Informed.co will become even better at predicting the ideal price point for reaching your target velocities across your private label and white label listings.
Once things stabilize, the sales velocity algorithm will looking to further increase your margins by testing to see if it’s possible to sell at higher price points while maintaining the same target velocity.
All of these are examples of our focus on fusing machine learning with repricing, and it’s just one element of the competitive advantage you’ll get by having Informed.co as part of your seller toolkit as the future of private label eCommerce evolves.
When is the best time to use velocity-based repricing?
There are three main scenarios when it makes sense to use our sales velocity repricing tool:
• When listings have no competition
• To manage your inventory more effectively
• To test what the market will pay for a product
Let’s dive into each one.
Use sales velocity repricing when listings have no competition
We’ve already delved into the fact that private label sellers and white label sellers can benefit from sales velocity-based algorithmic repricing. But there are other situations when sellers can tap into the power of our sales velocity repricer, even if they’re not private label or white label.
For instance, sellers who list bundled products on Amazon can use this strategy to boost velocity and profitability. The very nature of Amazon bundles is that they each have a unique ASIN, and unless a competitor makes a concerted effort to copy your bundles, you won’t face competition on those listings.
Smart sellers can take advantage of sales velocity repricing to test if the market will purchase more bundles at lower price points, or to see if they could maintain current velocity at higher prices.
Use a sales velocity repricer to manage your inventory before deadlines
With Amazon, there are always FBA long-term storage fees and other important deadlines to worry about. If you’re ever in a situation where your FBA inventory is full of stagnant products that have been sitting idle for months, you can employ a sales velocity repricing strategy to get them moving.
The beauty of having a specific repricing strategy for achieving a desired sales velocity is that you’ll drive sales and avoid hefty Amazon long-term storage fees, a clear double-positive.
Another relevant inventory management scenario where sales velocity repricing comes in handy is when you sell meltable goods, like chocolates, through Amazon FBA. That’s because there’s a strict cutoff date for allowing FBA meltable products:
“FBA accepts products that are subject to melting between October 1 and April 30 of each calendar year. Any meltable inventory in our fulfillment centers after April 30 is marked as unfulfillable and disposed of. Meltable inventory that arrives at fulfillment centers between May 1 and September 30 is marked as unfulfillable or disposed of.”
So, suppose that you sell chocolates and you find yourself with an excess supply when April 1st rolls around. Instead of having Amazon dispose of products that you invested your hard-earned cash into sourcing, you can set up repricing strategies using our sales velocity algorithm to get those products sold before April 30th passes to keep Amazon from marking them “unfulfillable.”
Finally, if part of your product line consists of expiration-dated FBA inventory, you can also use sales velocity repricing to your advantage. Just apply a velocity-based repricing strategy to your applicable listings with a goal of selling out specific products before they expire (and get disposed of or returned to you by Amazon).
Test what the market is willing to pay with sales velocity repricing
Say you’re launching a new product and you’re unsure how to price it. No need to worry; sales velocity repricing can help you find the ideal price point for hitting your sales goals.
Just enter your desired sales velocity for the product, along with your min and max prices, and the sales velocity algorithm will strategically price you up and down so you meet your target.
The longer you employ a sales velocity repricing strategy, the better the algorithm driving it will become at predicting the best price points for hitting your target velocity. On top of that, the algorithm will also get better at identifying opportunities to raise your price while maintaining your target velocity, so you also boost profits more over time.
When shouldn’t you use our sales velocity repricer?
Now that you know when to use sales velocity repricing, it’s important to mention when you shouldn’t use it.
In scenarios when you’re facing a high level of competition, we advise using our Get the Buy Box algorithmic repricing strategy instead. That way, your prices will react faster based on what your most relevant competition is doing at any given time, helping to power you into the Buy Box.
Of course, if you don’t yet qualify for winning the Buy Box, you should tackle that immediately, and our informative article on attaining Buy Box Eligible Status will help.
If you prefer, you can also create a custom repricing strategy using our detailed competition exclusion settings to home in on exactly who need to be competing against on price to win the Buy Box.
(You can also read this article on how to win the Buy Box more often for more insight on this vital topic for Amazon sellers.)
The bottom line: Sales velocity repricing helps you hit your business goals
If you’re a private label or white label seller who’s been in search of a solution to your pricing problems, today is a great day. Same goes if you’ve been selling bundles or launching new products on the Amazon Marketplace.
With your new discovery about our sales velocity algorithm and how it opens the door for private label repricing, white label repricing, and more, why not experience it for yourself?
When you sign up for an Enterprise plan with Informed.co, you’ll gain instant access to this powerful new feature, which can open up doors for you to step away from the tedious practice of manually repricing private label and white label listings.
Perhaps the best part is that you’ll regain hours of your life that used to be spent on making price changes. With more time, you can focus on building your business in new ways and even creating a more optimal work-life balance to help you and your team avoid burnout.
What are you waiting for?! Click the link below to get started with a free 14-day trial to see how private label repricing can help scale your business.