Here are the things you need to know about Amazon repricers. With more than 2.5 million active sellers on Amazon, fierce competition among sellers is unavoidable. Since price is a critical factor for buying consideration, implementing a reliable pricing strategy to outsmart your marketplace competition is necessary.
With this goal in mind, most sellers make use of Amazon repricers. Successful Amazon sellers usually utilize third-party repricers to achieve an effective pricing strategy.
The Impact of an Amazon Repricer on Your Amazon Business
Why Price Matters on Amazon
Price defines the value of a product. It is through a tangible price point that customers can evaluate whether or not to purchase a consumer item. Simply put, price is a perceived value for cash.
Needless to say that the way you set your product price has a significant effect on how online shoppers behave. When shoppers perceive your listing price as reasonable, it leads to better Amazon store sales performance.
Amazon repricers strategically help you win more Amazon Buy Box and can potentially increase revenue and/or profitability.
All About Repricers
Now that the importance of price optimization has been established, let’s examine the Amazon seller tool that can help you achieve this goal.
What is an Amazon Repricer?
An Amazon repricer is a tool that changes Amazon product prices according to a particular setting or specified rule/s. The frequent changes in listing price aim to keep Amazon listings highly competitive.
The main goal of an Amazon repricer is to help you establish a repricing strategy that leads to increased sales performance. It factors in numerous components to make necessary price adjustments.
Amazon Repricer Typology
Currently, there are three main classifications of a repricer. And each of these types has its unique features and functionality.
- Manual Repricers
Before any advancement in repricing technology was introduced, Amazon sellers were tinkering with manual repricers. This type of repricer basically functions as a simple tool that allows Amazon sellers to manually change the price for each product in their inventory.
Unlike its more advanced counterpart, a manual repricer consumes more time and effort because sellers have to manually input prices for each item per listing. The more items in your inventory, the more time it takes to manually reprice each item on a regular basis.
As well as manually inputting listing prices, constant monitoring of competitors’ listings is also needed to serve as a reference for the manual repricing process.
- Rule-based Repricers
A rule-based repricer, as its name would suggest, emphasizes the implementation of specific repricing rules and conditions as set by the seller. This type of repricer operates under pre-designed templates.
Depending on the marketplace situation and your goal as an Amazon seller, you can simply choose repricing rules to be implemented based on the available rules within your repricer.
Some of the rules used for rule-based repricing include, but are not limited to, Follow Competitor and Set to Min Price/Max Price, etc.
Although a rule-based repricer has an edge over a manual repricer, it is still prone to human error since rules are set by the users. Therefore, sellers have to try and predict scenarios and create solutions to these predicted scenarios using the rules provided by the repricer. Rule-based repricers can result in price wars, in which sellers undercut one another as a means of dominating the Buy Box causing them to sell at their minimum price.
Additionally, appropriately responding to changes in the marketplace will also depend on how quickly you can identify emerging trends and significant market updates. This type of repricing method is less strategic and more reactive.
- Algorithmic Repricers
The algorithmic repricer or automatic AI repricer is best known in the eCommerce industry for its effectiveness, efficiency, and proven benefits.
What makes AI algorithmic repricers distinct from the aforementioned Amazon repricers is the repricing solution it offers and the way it operates. Unlike the manual and rule-based repricer, an algorithmic repricer applies computer algorithms in setting ideal prices for product listings. Since automatic repricers learn from the competitive environment and create strategic repricing strategies, no set-up is required on the side of the seller.
AI algorithmic repricer, Seller Snap, uses Game Theory tactics to refine the repricing process. The AI-powered Amazon repricing software analyzes competitors’ behavior, pricing data, current marketplace conditions, and other relevant updates coming directly from Amazon’s API.
With this information, Seller Snap makes tailored price adjustments to outsmart your competition. This results in sellers attaining their fair share of the Amazon Buy Box and a higher product price. Therefore resulting in increased profit margins.
Amazon Buy Box Repricers
Winning the Amazon Buy Box is critical for selling on Amazon
Every Amazon seller aims to win the Amazon Buy Box. It is highly sought-after real estate on Amazon, mainly because more than 80% of Amazon sales happen through the Buy Box.
The Amazon Buy Box is located on the right portion of the product detail page, where the Add to Cart and Buy Now buttons are found. Winning more Amazon Buy Box would mean that your listing becomes more visible to online shoppers, which could translate into better sales output.
In choosing the Buy Box winner, the Amazon algorithm takes into account various key factors, other than just price point. Some of these elements include the following:
To win the Amazon Buy Box, you should first be Amazon Buy Box eligible. Becoming Buy Box eligible requires you to have, (1) Professional Selling Account; (2) Sufficient Order Volume; (3) Better Performance Metrics.
- Fulfillment Method
When choosing a fulfillment method, Amazon tends to favor Fulfillment by Amazon (FBA) over Fulfillment by Merchant (FBM). The Amazon algorithm favors the FBA program because Amazon has the physical control of your products, including picking, packing, and shipping. Thus, allowing them to guarantee fast and efficient delivery to Amazon customers.
- Shipping Time
The Amazon algorithm also considers shipping time (this is also dependent on the fulfillment method). See to it that your shipments don’t encounter any delays by choosing the right fulfillment method, as well as a reliable delivery method to keep your handling times as short as possible.
- In-Stock Consistency
The Amazon algorithm also checks your inventory, so ensure that you have a healthy inventory at all times. You must observe proper inventory management to keep products in stock.
- Customer Feedback
Customer feedback is another factor checked by the algorithm when awarding the Amazon Buy Box. Amazon is obsessed with customer satisfaction, so it’s important for all sellers to maintain a positive reputation within their Amazon store by collecting as many positive reviews and feedback as possible. You can purchase review tools to help you acquire customer feedback.
One of the most important components considered by the algorithm for awarding the Buy Box is, of course, pricing. Amazon wants to keep its reputation as one of the best online destinations for affordable consumer items, which is why the algorithm only awards the Buy Box to sellers offering competitive pricing.
When it comes to competitive pricing, offering the lowest price is not an assurance that you will win the Amazon Buy Box. Hence, the use of a repricer is recommended.
Final Thoughts on Amazon Repricers
The use of a repricer is beneficial for Amazon sellers, especially those wanting to effectively scale their Amazon business. You can easily manage or even avoid price wars with the help of a repricer, specifically an algorithmic/automated repricer that creates tailored repricing strategies based on each individual listing.
The listings in your Amazon store will remain competitive even without you having to constantly monitor competition or readjust listing prices. With the help of an Amazon repricer, you will have a better chance of winning the Amazon Buy Box at a higher price point, which ultimately leads to improved profitability for your business.
However, you should take note that success in the Amazon industry is not solely based on winning the Amazon Buy Box. You should also consider other variables of business growth, such as Amazon account auditing.
To put it into perspective, this type of audit relates to the filing of claims for reimbursements, based on analysis of data and reconciliation of inventory. For the audit to prosper, you can trust GETIDA to help you and reach out to us to learn more at email@example.com.