Whether you’re a first-time Amazon seller or a seasoned pro, finding the right pricing tool is essential to your success. It can be difficult to know which one is the best for your business with so many options available. In this blog post, we’ll walk you through finding the right pricing tool for dropshipping on Amazon in 2023.
It’s a popular low-barrier entrance for eCommerce and still a profitable business model. However, like other businesses, your profitability heavily depends on the dropshipping model and tools that you use. This blog goes through a few points to check before deciding on the pricing tool for your dropshipping business on Amazon.
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Advantages of Dropshipping on Amazon
Dropshipping on Amazon is easy to start, gives you immediate access to quite a large audience, and helps you with marketing your products and SEO:
Verified Amazon Dropshipping Supplier: Of course, you need to identify yourself as the seller before anything. Amazon buys products in bulk from most suppliers. It then keeps everything in warehouses until it is ready to ship. Whether you are a professional or a new FBA seller of your products, you can sell quality products to massive international customers.
Zero warehouse cost: Amazon offers its own fulfillment center, known as Fulfillment by Amazon [FBA], which allows you to complement your dropshipping your products on Amazon with your own items without dealing with packing, shipping, or warehousing.
More opportunities to be discovered: Amazon also has over 30 categories that you can choose from. You can sell as many different dropshipping niches as you want. With the right pricing tool for dropshipping on Amazon, the dropshipping suppliers and product listings can help you reach super-targeted markets.
Cons of Dropshipping on Amazon
Short long-term relationships with customers: It is a little unlikely that you will develop long-term relationships with your customers. Amazon is geared more towards helping the online stores on its platform start selling products rather than building relationships with customers. Be prepared to be severely restricted in how you can brand your business, display your products, and communicate with your customers.
No customization: You will be really limited in terms of customization. Everything you do in terms of branding, UI, marketing, and everything else is under Amazon’s control.
Advance investment: To meet Amazon’s fulfillment requirements, you’ll want to have a product from a supplier on your list. This means you will need to invest upfront in starting dropshipping on Amazon.
What to Consider About a Pricing Software for Dropshipping on Amazon?
As a thriving dropshipper, you need to list unlimited SKUs and scale up, and the sky’s the limit. Do not use an Amazon pricing tool that limits your business potential because of its limited infrastructure.
Automated High and Low Price Check
Amazon dropshippers can not look at every single item and set the price based on the Amazon fair price policy. An algorithmic and AI-based pricing tool is capable of preventing possible errors. It can check the Min and Max price ranges of Amazon and reactivate the listing in case Amazon deactivates the listing.
Many Amazon pricing tools use infrastructure that only supports repricing every 5 to 15 mins. Such pricing speed was plodding in 2023. Every second is crucial for winning the buy box with the right price. Use Eva, the fastest Amazon pricing software, to make price decisions based on your competitor’s price, demand, and stock level and send them to Amazon every 2 minutes.
Beware of the ones that claim they reprice in real-time. Their architecture only allows sending price decisions to Amazon min every 2 mins, but sending is instant. So it’s safe to say this is just a play with the words.
Automated Store ROI
As a drop shipper, you want to have a specific ROI, and as long as you know your cost, you need an Amazon pricing strategy that can take the Cost and ROI and will deliver the expected return based on the store ROI. Ensure your Amazon pricing software work based on this concept.
No Pricing Rules to Be Defined
If you are spending your time deciding what rule or Amazon repricing strategy to pick up as a drop shipper, you are dead. Instead, pick up a real AI-based Amazon repricer that uses a Data-Driven approach, learns from data, and decides on the next best action for your listing.
Eva’s AI-powered algorithmic repricing is not the race to the bottom. Based on a case study, Amazon pricing software should have 75% of the decision to increase the price to obtain better profit margins. Otherwise, that Amazon repricer should not be called intelligent.
The bottom line, dropshipping on Amazon sets specific requirements for an Amazon repricing tool, and not all can perform the same. There is one Amazon pricing tool available today that supports dropshippers business in 2023 and that’s Eva Intelligent Repricer. If you are a dropshipper and have thousands of SKUs, you can switch to Eva in minutes and enjoy unlimited SKUs and value-based pricing. You will see the difference in your revenues on the first day—no need to even wait for tomorrow.
When choosing a repricer for dropshipping on Amazon, there are many factors to consider. Hopefully, this blog has helped you narrow down your options and better understand what to look for in an Amazon repricer.
If you’re ready to start testing Amazon pricing software, we invite you to try Eva’s 15-day free trial. With Eva, you can run multiple Amazon stores at once and get real-time feedback on how they’re performing. We think you’ll be impressed with the results!