5 Reasons Why Sellers Need an Amazon Repricer Tool
When you realize that you need an Amazon repricer tool and start to investigate the right one, you encounter a lot of options. Some of them assert that their rule-based technology can help you, some say the algorithm is the key, and some are sure that their Artificial Intelligence is futuristic so that it can take you to the moon! These may sound reassuring, and you may believe the Amazon repricer you choose is right for you.
However, things might not go as are planned or said every time. Of course, this does not mean that they are lying or you can not be successful with Amazon Repricer. On the contrary, they can help boost your sales, increase your profit and grow your business. The point is you need to ask the right questions to find the best Amazon repricer tool for you so that you can move your business forward.
In this article, if you are an Amazon seller, find out the 5 critical questions sellers should ask before getting an Amazon repricer software.
Table of Contents
- 1- Is It Possible For An Amazon Repricer Tool To Acquire A Large Range Of Data?
- 2- What Are The Other Elements That Amazon Repricer Tool Takes Into Consideration?
- 3- Can an Amazon Repricer Adjust To Changing Market Conditions?
- 4- Can You Win Price Battles With The Aid Of A Repricer?
- 5- Does A Repricer Have Machine-Learning Capabilities?
1- Is It Possible For An Amazon Repricer Tool To Acquire A Large Range Of Data?
To assist e-commerce sellers in meeting their strategic business goals, a real algorithmic repricer employs a wide range of big data insights. In a dynamic and complicated competitive market, this provides the highest levels of repricing accuracy.
Start by determining if a repricer considers the appropriate marketplace criteria when making adjustments, such as your landing price, competitor prices, fulfillment method, shipment time, stock availability, and ratings. This will allow you to assess your competitive position and determine if you have an advantage. How much is that competitive advantage worth if you do?
If one seller gets near-perfect feedback and uses FBA, but another seller (who sells the same product) has poorer metrics, the first seller may afford to raise prices without compromising profit or Buy Box share. A smart algorithmic repricer is context-aware, choosing the price point that will always bring you the best Buy Box share.
2- What Are The Other Elements That Amazon Repricer Tool Takes Into Consideration?
Rule-based repricers work by altering your pricing to match those of your rivals while disregarding all other seller and market indicators. For tiny, entry-level firms, this typically works well. Larger sellers with a vast portfolio, on the other hand, are more concerned with long-term growth. Profitability is paramount to them. A real algorithmic repricer, on the other hand, understands how to spot profit opportunities ahead of time.
It can also assess whether market conditions warrant a more aggressive strategy in terms of optimizing for more sales at the price of profits. Business expenses, sales velocity, delivery time, stock availability, and other factors should all be factored into the repricing technology.
3- Can an Amazon Repricer Adjust To Changing Market Conditions?
A real Amazon algorithmic repricer should be responsive to changing market conditions and provide a comprehensive view of the competitive landscape. It adjusts to offer you the edge depending on what is going on in real-time, unlike static rule-based repricers. For example, if a weaker seller joins the competition, you can probably afford to raise your pricing while keeping or growing your Buy Box share.
Furthermore, private labels and brands that currently own the Buy Box can use Eva’s dynamic pricing technology to analyze direct and indirect competition using sophisticated demand models that actively modify prices to enhance market share, improve sales rank, and maximize sales.
4- Can You Win Price Battles With The Aid Of A Repricer?
Selling on Amazon without a rule-based repricer is akin to waging a battle without a shield – a price war, to be exact. When your objective is to undercut your opponent at any cost, and they have the same goal, you wind up driving each other to floor pricing. If you value preserving or expanding profit margins, a competent algorithmic repricer will also prioritize profit margins. This decreases the chances of becoming engaged in unwelcome pricing battles that might suffocate your profits (and your business).
5- Does A Repricer Have Machine-Learning Capabilities?
A true algorithmic repricer is self-learning, which means it gets better over time. Eva’s repricer, for example, employs AI-powered technology to continually generate revenues, learning and improving as more data about new products you sell is collected. It also learns the behavior of rivals and their floor pricing while determining the best price point for you at the time. It can take initial input (such as a floor and ceiling price) and use gathered data to figure out how to reach your objectives.
Many of the so-called “algorithmic” repricers are nothing more than a collection of rules. When looking for an Amazon repricer tool, ask yourself the questions above so you can get off to a good start. If you’re just getting started on Amazon, a rule-based repricer may suffice in the short term; but as your business grows, you’ll need an AI-driven repricer like Eva’s all-in-one platform for retailers, and Private Label sellers, which can make intelligent judgments without being instructed what to do.