If you're an online seller, you probably already know how crucial pricing is when it comes to selling your products on Amazon.
With the massive scale of sellers and products on Amazon, competition is inevitable, so you constantly need to be on top of monitoring and changing your prices to stay competitive. Amazon themselves make over 250 million price changes every day.
But how can you spend 24/7 monitoring your prices? (Hint: you can’t.)
This is why automated pricing, commonly referred to as repricing, is a crucial element to staying competitive on Amazon.
Amazon repricing is the process of automatically changing the prices of your products on Amazon’s marketplace. A variety of factors can trigger a price change, but the most common factor is a change in a competitor’s price.
By automatically adjusting your prices, you can ensure that your prices remain competitive and attract customers 24 hours a day, 7 days a week. Since Amazon sellers who use automated repricing can react faster than sellers who don’t, they have the best chance of increasing their sales, improving their profit margins, and winning the Amazon Buy Box.
Let's dive deeper into how Amazon repricing works and how it can help you gain a competitive edge.
We’ve established that Amazon repricing is an automated process of adjusting the prices of your products.
But how and why do these prices change? When using an automated repricing tool, your prices will change based on a set of predetermined rules or strategies. These strategies may include factors such as cost, fulfillment type (i.e. whether an item is FBA or MFN), competition, and variations in industry value.
The key driver of Amazon repricing is the massive amount of competition on the platform. With multiple sellers for almost every product, shoppers are constantly comparing products and prices, and every Amazon seller strives to have the perfect price that will attract consumers while still keeping their profit margins high.
In addition to needing to win over consumers, sellers also use automated repricing tools to help them win the Amazon Buy Box. The Buy Box is the white box on the right-hand side of an Amazon product detail page where shoppers can select the “Add the cart” button to purchase a product from the specific seller whose listing is currently in the Buy Box.
Since 82% of Amazon sales are made from the Buy Box, it’s crucial for an Amazon seller’s success. The price of an item is one of the key factors that determines whether it’s eligible to be in the Buy Box, so many sellers are motivated to use repricing tools to help them win as many Buy Boxes as possible.
Due to the massive scale of Amazon’s marketplace, using automated technology to stay ahead of the competition and increase sales has become a necessity.
If your competitors are using an automated repricing tool and you’re not, you’re going to lose out on sales due to not being able to react to your competition quickly enough. At the end of the day, no human can monitor prices as fast as an automated service can.
By letting an automated repricing tool handle adjusting your prices, you can spend that time you would have spent monitoring your prices doing other things to help your business, like sourcing new products, working on a marketing strategy, and delivering stellar customer service.
Amazon repricing tools work by constantly monitoring your competition’s prices and automatically adjusting your prices accordingly. Many repricing tools have customizable rules that allow you to set a pricing strategy that aligns with your goals. This means that even when using an automated pricing tool, your prices will never be set to an amount that you’re not comfortable with.
Repricing tools let you set minimum prices, maximum prices, and even desired profit margins so that you’ll never sacrifice too much profit just to make a sale. This is what makes automated pricing tools so powerful - they automatically make prices changes based on specifications that you set so you still have control over your prices without having to lift a finger.
Repricing tools generally offer a variety of different repricing strategies. These strategies include things like targeting the Buy Box, improving your profit margins, and even finding the optimal price when your listings don’t have competition.
Using an Amazon repricing tool can provide a number of benefits for sellers, including:
These benefits make using an automated repricing tool a no-brainer for sellers who want to make more money and scale their business.
Allowing an automated pricing tool to reprice your products on Amazon is the key to beating your competition and increasing sales. Employing a repricing tool helps sellers stay competitive, protect their bottom line, grow profit margins, and have more free time for things like sourcing new products.
If you're an online seller looking to stay ahead of the game, consider implementing an Amazon repricing tool (such as Informed Repricer) to stay ahead of the competition. With the right tools and strategies, you can boost your sales and profits and stay competitive in the ever-evolving Amazon marketplace.
Informed Repricer is a competitive repricing platform that helps online businesses drive profits using smart algorithms and actionable insights.
