No seller will disagree with the claim that a repricing campaign can be risky depending on the tool you use. With your business profits, reputation, and future, all at stake – it is important to use the right solution However, competitive pricing is also highly rewarding, which is why so many sellers opt for the Amazon repricing tool – it helps you maximize your profits while saving you time.
In this blog, we will briefly discuss what an Amazon repricing tool does, the many benefits that it offers, and the factors that you should consider before picking a particular Amazon repricing tool.
Amazon Repricing – What Is It?
In simple words, Amazon repricing is when a seller changes the price of their products on Amazon’s marketplace. There are several reasons why a product’s price might change, such as competition, inventory, trends, and more.Every listing will have several sellers in competition for the product sale. If a seller has not priced their product competitively, they might fail to make a sale or win ownership of the Buy Box. Because of the large quantity of sellers and products means that it is not efficient to check every price manually.
This is where Amazon Repricing tools come into play – they allow sellers to maintain competitive prices throughout the day. These tools help you decide a pricing strategy based on factors such as score, fulfillment type, and seller feedback.
AI-Based Amazon Repricers – How Do They Work?
An AI repricing tool will collect data and, based on that data, it will predict the best possible price for you to own the buy box. This premium repricing tool will enable you to always come up with the ideal pricing strategy for every Amazon listing. AI will automatically apply the perfect approach for every scenario.
Introducing automation into your Amazon product pricing strategy is a vital step towards greater revenue and profits. This step is particularly important if you are dealing with a bunch of SKUs and wish to stay ahead of the competition on all fronts.
Let us now discuss some of the benefits of an Amazon repricing tool in greater detail:
Amazon Repricer – Benefits:
1) You can make rational decisions:
Examples of emotional sales and purchases are all around us: the price of a stock dips and people rush to sell that stock, driven by the fear that the price might drop further. However, traders who keep emotions aside know that this is the time to buy – and not sell – that particular stock.
An Amazon repricing tool works similarly, and makes sure that sales and purchases are objective rather than emotional processes. A seller might get frustrated when they find a competitor undercutting them and ‘robbing them off’ their sale. However, a repricing tool is not surrounded by any such emotion – it only operates on the basis of a set of rules designed to keep track of your competitors’ actions and to prevent you from making potentially dangerous or risky decisions.
2) Increased Buy Box Winnings:
When you automatically adjust your prices according to those of your rivals, you increase your chances of grabbing Amazon’s Buy Box. Remember that the Buy Box is responsible for up to 82% of total Amazon sales. The Buy Box is even more influential for the ever-growing number of mobile shoppers, since it displays fewer other sellers.
3) Allows you to make real-time reactions:
Manually repricing products means that your reaction time will be too long. Also, what if you have decided to take a vacation? You would not want to pull out your computer on the sandy beaches of the Caribbean so that you can reprice products? A repricing tool will help you get rid of this hassle with its ability to make real-time decisions.
4) There is no repricing limit:
Price changes on Amazon can be swift, and sometimes, they can change multiple times within a single hour. Dedicating manpower for this purpose would almost certainly mean ignoring other aspects of your online business and affecting its overall performance. Once again, with a repricing tool, you can dedicate your attention to more complex areas and allow the repricing algorithms to stay ahead of every price fluctuation.
5) It minimizes the error margins:
The best thing about the software is that it will never do anything more or less than what you have instructed it to do. Also, it is not vulnerable to human weaknesses like a lack of sleep or food.
So, when you appoint a human – no matter how capable and immaculate – there is still a small possibility that they might make an error. On the other hand, a repricing tool – as long as it is in working order – reduces the chances of mistakes to almost a zilch.
6) Considers multiple factors:
It is hard to consider every factor before making a repricing decision – more so, when many of those decisions have to be made spontaneously. A repricing tool, however, will be able to take everything relevant into account and apply it accordingly.
7) Lower labor expenditure:
Regardless of your revenue to labor hours ratio, you want to make sure that you are spending as little as possible on repricing. Why? It is not exactly smart to dedicate significant amounts of labor, time, and money for something that a software piece – that will not require a salary or any benefits – can perform efficiently and accurately.
8) Allows you to adjust according to your competitors’ actions:
Conducting research on your competition is important but not sufficient. You also want to know how all your products apply to all sellers, and vice-versa. If you perform this task manually, there is the chance that you might miss some closely matching products or sellers without realizing it. You will not have this problem with a repricing tool, as these tools have the ‘advanced similarity matching’ feature that will give you an even greater edge.
Choosing an Amazon Repricing Tool – Factors to Consider:
1) Your requirements:
It is important that the repricing software you choose is compatible with your current software, system, and working style. You should consider the minimum requirements, including the following:
- Whether you need cloud-based or downloaded software.
- Operating system and the compatibility with web browsers.
- Blending with present systems (like software used for inventory management).
- Blending with sales channels other than Amazon (such as the Walmart Marketplace).
- Congruous with the currencies and Amazon regions that you use.
Repricing tools come with a wide range of features, and the right ones will depend upon your business strategy and needs. Some mandatory repricing features include:
A basic repricing tool will only gather information from competitors, while its more sophisticated counterparts can collect information for aspects such as price, price with shipping, offers, handling time, and others.
Default maximum and minimum price:
You do not want to run in a profitless marathon, and hence, you need to make sure that your repricing tool allows you to set maximum and minimum prices – and, if required – it should also consider your preferred profit margin. Sellers dealing with numerous SKUs can specifically benefit from a bulk editor.
Basic tools will make use of default algorithms to come up with the most competitive and profitable prices. An advanced tool, on the other hand, will let you establish your own rules for repricing. Examples of such rules are:
- Increasing prices at points when demand is exceeding supply.
- Repricing more aggressively at certain times or days.
- Ignoring competition that has poor feedback scores.
If you are dealing with many competitors, you can use the competitor filtering feature to avoid unneeded drops in price. Search for a system that provides a variety of competitor filters, such as seller rating, seller ID, item condition, and dispatch times.
One of the main reasons that people go for a repricing tool is to increase their chances of getting Amazon’s Buy Box. If you are one such seller, you should make sure that your tool is in competition solely with sellers that are featured. If the Buy Box is the only thing driving you, you should consider getting a repricing tool that will price only against the holder of the Buy Box.
When it comes to repricing, speed is of paramount importance – it ensures that you compete effectively, keep hold of the Buy Box, and attract the highest possible customers. Get a system that has automatic reactions, is aligned with the competition, and is quicker compared to manual adjusting.
Any worthy e-commerce tool should have reporting functionality. You would want your Amazon repricing tool to offer information on:
- The number of daily, weekly, and monthly price changes.
- Past and current competition for every product.
- History of product pricing.
With this data, you can determine the effectiveness of your repricing strategy and the changes – if any – that should be made in order to improve results.
Unless you can easily set up, understand, and use the tool, it will be of little help to you. Some features that can save time for you are:
- Bulk changes.
- Quick editing.
- Easy filtering.
- Live system status.
Payment options will vary from provider to provider, and will usually operate on an SKU, profit, commission, or monthly basis. Regardless of the payment option, your repricing tool should offer you your desired ROI, boost your sales revenue, and increase your profits. Be sure to consider these factors while assessing fees and other costs, and go with a payment method that is best suited for you.
It is impossible to check all of the above factors until and unless you get a trial run with the repricing tool. Hence, it is vital that you get a bunch of free trials and spend time using the tool in order to get a good feel for it. This is particularly important since there are so many Amazon repricing tools available in the market, each one different from the other.
Although Amazon repricing tools are generally easy to set up and operate, there is always the outside chance that you might need a bit of assistance at some point. Look up the research options that are available and ensure that they are part of the fees and not charged-for separately.
There is no question about the benefits that an Amazon repricing tool can present. However, in order to maximize those benefits, you also need to ensure that you have picked the perfect tool based on your business strategy, approach, requirements, and needs.
For reliable AI-Powered repricing, Eva.guru provides not only reliable repricing where you only need to set a minimum price. But it also has thorough analytics that help you see the day to day profits of your Amazon business.
When you have selected your repricing tool, to ensure long-term profits and success, you should establish excellent relationships with your customers by offering them as much value as you can in the form of quality products, quick shipping, and exceptional aftersales services.We hope that this article will help you with both the understanding of Amazon repricing tools’ benefits and the ways that you can ensure that you extract and realize those benefits for your online Amazon business. If you want to learn about how an Amazon repricing tool can benefit your particular business, please schedule a Demo or start your 15-day Free Trial.