Most sellers are doing away with the ineffective manual repricing approach and are instead turning to Amazon pricing software. These automated pricing tools allow sellers to not only remain competitive and save time but also increase their chances of winning the Buy Box. This blog will discuss how you find the best automated pricing strategy to become a stellar seller.
Table of Contents
Determine your maximum and minimum prices:
Most of the Amazon pricing tools you use will give you the option to set your maximum and minimum prices.
You should begin by determining your minimum prices. To do that, list down every cost involved in a product (cost of the base item, Amazon fee, shipping fee, and the cost of the software*) and calculate the sum of these costs. Next, add the percentage of margin that you would like to earn. If you are unclear about this profit margin, 25% would be a good place to start.
*The software cost per unit can be calculated by dividing the monthly software usage cost by the number of products listed within the same time period.
The figure that you come up with is the lowest price at which your product should be listed. There are certain occasions where you can drop below this threshold, such as when you are trying to sell off slow-moving inventory or are promoting your product.
Now, determining the maximum price is slightly trickier since it involves many more factors, including current demand and supply and your competitors’ actions.
Mathematically, the approach toward setting a minimum price is not much different from the one you took while calculating the min price. You will consider all your costs and add a profit margin to it – only this time, the margin should be higher. The better your competitor research and tracking, the more accurately you will be able to set your max price at which to sell on Amazon.
See Also: What is the Best Amazon Shipping Method?
Refine the rules of pricing:
At this point, you can personalize the process according to your needs, budget, decision-making, expertise, skills, and inventory. Here are some of the basic things you need to know about pricing rules:
1) Go for a template that is pre-built:
If you would rather make alterations to something that has been already developed instead of beginning from scratch, a pre-built template is an excellent choice. This way, you will be able to assess a wide range of pricing tools and decide which ones are perfect as-is and which ones need a bit of tweaking.
2) Establish basic repricing rules:
We have already discussed the setting of max and min prices, but another general rule you can form is the way you compete and with whom. For instance, you can customize your filters so that your prices only compete with sellers who do not belong to the top 10 list of Amazon FBA sellers, or you can even completely exclude any FBA sellers.
3) Item condition:
This means setting product pricing rules so that only products with a condition similar to those you are selling show up. If you are selling a brand-new product, you will find it impossible to win against a cheaper, used counterpart. On the other hand, if you are selling a second-hand product, your price should be attractive enough for customers not to be lured by the attraction of an identical but brand-new item.
4) Exclude or include sellers:
This is another stage at which you should dedicate a substantial amount of time to competitor research. This is because the competitors you choose to exclude or include can significantly impact your profits. We recommend creating a spreadsheet containing competitor information such as names, feedback, locations, and shipping times so that you can compete with the Amazon FBA sellers that match you the most closely.
5) Pricing to price above, beat, match, or ignore:
As you begin refining selections, you will have to decide whether you should price above, match the beat, or ignore sellers. There are plenty of ways that you can use to fulfill Amazon orders (such as Fulfillment by Amazon, Merchant Fulfilled, Seller Fulfilled Prime, or Amazon itself), and, once again, the more prepared and researched you are, the better your chances of making the right decision.
For instance, if you have decided to fulfill your orders yourself, your shipping times will be higher. So, you need to offer more attractive prices to nullify the longer shipping duration – in other words. You should not compete against FBA prices. You could also decide to compete against Buy Box sellers, but you need to remember that getting a Buy Box is heavily dependent upon prices, so you need to make sure that this is the right choice for you.
6) Scenarios:
Just like with anything, it is best to have fallback plans in case things do not work out exactly according to plan – forming scenarios for the Amazon pricing software gives you precisely that. It helps you determine what would be the best decision in different situations. For instance, if you had zero competition for your product, should you go for the min price, max price, or no repricing? (the correct answer is max repricing).
7) Profit protection:
Regardless of your pricing rules, your foremost objective should be to shield your profits. There will be times when you will be tempted to go for a loss leader to boost your sales, but you should never take this route if it negatively affects your overall profits.
To ensure that your profit remains protected, you should establish rules that decide the points at which a repricing rule will stop and start and what will happen with such settings.
8) Repricing frequency:
A decent Amazon pricing software will automatically implement repricing rules based on your pre-applied settings. A better one will instantly perform this task within your repricer and do its best to imitate Amazon’s speed. You should be aware that Amazon has a limit on every repricer using the marketplace, so make sure that your personal repricer can operate swiftly and compensate for lost time.
Read More: 6 Most Common Amazon Pricing Mistakes
The Top Repricing Tools for Amazon FBA Sellers:
This section comprises a list of the Amazon repricers that have established their domination in the market, thanks to their wide range of sophisticated features.
1) Eva
Eva connects the most important aspects of your Amazon business into a single intuitive dashboard. AI-Powered price management, reimbursements, and analytics. With Eva, you can focus on what’s important: growing your business and enjoying your freedom.
Completely AI-Powered, so you never have to worry about setting repricing rules, maximum price, or Amazon fees. Know your sales and profits with thorough analytics.
Visit Eva to save hours of your time and significantly boost your profits. There is even a 15-day free trial available. Schedule your demo here.
2) Repricer Express:
Repricer Express’ advanced features will help you boost your sales and increase your profits tremendously. It is compatible with 11 distinct Amazon marketplaces while also allowing Amazon FBA sellers to prepare their customized pricing plans and establish maximum and minimum price guidelines for all listed products. It comes with a comprehensive list of instructions that you can apply to the software as and when required – along with a trial period of 15 days, at the end of which you will be charged based on how many products you have listed.
3) Seller Dynamics:
If your main objective is winning the Buy Box at optimal prices, you can use Seller Dynamics to tailor the repricing strategy and adjust prices to obtain the highest profit. Seller Dynamics is best suited for Amazon FBA sellers and comes with default inventory management features. It automatically updates inventory levels and prices and lets you alter your prices based on prevalent supply and demand.
4) BQool:
BQool is yet another excellent Amazon repricing tool and can be accessed by all the major Amazon markets. This intelligent repricer lets Amazon FBA sellers come up with their strategies by understanding their rivals. The tool will change your product prices according to factors such as inventory levels, item condition, order fulfillment options, and competitors’ ratings – this leads to highly accurate and targeted repricing.
You can also track price changes, perform visualizations for critical performance data, sort listings according to your desired filters, and even upload spreadsheets. BQool offers a fortnightly trial period for its new users.
5) Repricer:
Previously called xSellco, Repricer.com is real-time Amazon pricing software, which means that every repricing change will be put into immediate effect. This means that it can better other repricing tools in terms of sales volume. Repricer is backed by Amazon’s Web Service and makes sure that every repricing activity is implemented at top speed.
The tool makes tracking easy and will instantly establish an excellent price as soon as it notices your rivals running low on their stocks. Repricer also comes with a two-week trial period, at the end of which users are charged according to their SKUs.
6) Feedvisor:
Thanks to its sophisticated repricing algorithms, Feedvisor increases Amazon sellers’ chances of winning the Buy Box at optimal prices for every item. Feedvisor is an AI-based repricer and will walk the extra mile for you by factoring in aspects such as seller performance, key targets, and competitor actions.
Moreover, it allows for real-time market landscape analysis, obtaining transaction data outlines, gaining operational insights, aggregating numerous data points in real time, and optimizing investment strategies by classifying top-performing listings, underperforming listings, and all non-profitable products within one dashboard.
7) Teikametrics:
Another Amazon pricing software dedicated to the needs and requirements of FBA sellers, Teikametrics, helps with managing shipping, purchase orders, restocking optimization, repricing, inventory analytics, and more. Moreover, the customizable design lets sellers develop real-time pricing strategies based on their sales performance. Teikametrics allows you to establish competitive pricing, leading to higher SKU profit margins.
8) Sellery:
Sellery will fulfill your aim of winning the Amazon Buy Box and standing out as a seller. Every repricing is executed in real-time. It is equipped with intelligent strategies and can easily be integrated into your selling and pricing plans. Moreover, Sellery users can benefit from its exceptional customer service which includes professional consultations and tips from Amazon experts.
9) Aura:
Aura comes with advanced functionality without bleeding sellers dry. Sophisticated features like Workforce and immediate algorithmic repricing allow for complete automation of listings.
Moreover, this tool gives the Amazon FBA seller full control over their listings. You will be responsible for deciding the strategy and enabling the listings. The tool will automatically set min and max prices and will use InventoryLab for the direct importing of costs.
One of the premier repricing tools on the market, Aura comes with a 14-day trial period.
10) informed.co:
Informed.co, which was previously called Appeagle, is a type of multi-channel package that comes with an incessant repricing tool and several other sophisticated algorithms explicitly designed to help Amazon sellers win and retain the Buy Box.
Users can determine their desired competitors and establish repricing rules that will help them outrank those competitors. Thanks to its immensely simple automation, users can now track everything that they wish to track related to selling.
Conclusion
Amazon pricing software tools are fast becoming the norm thanks to their many advantages. However, you can only attain those benefits if you know the tools that will work best for you and how to operate those tools to achieve your selling strategy and maximize your profits.
We hope that this guide will prove fruitful to you as you begin your quest toward automated Amazon repricing and take your selling, revenue, and profits to the next level.
