Amaze of Dynamic Pricing for Your Private Label Business on Amazon
Unleashing the hidden potential of Amazon Dynamic pricing can significantly boost the profits and sales of Private Label sellers on Amazon.
Private Labels, Manufacturers, Brands on Amazon, and other eCommerce platforms have asked me about Dynamic Pricing for several years. Amazon is transforming into a pay-and-play platform with cutting-edge marketing strategies. But most Private Label Amazon sellers haven’t leveraged the power of Amazon dynamic pricing yet.
This blog tells you how utilizing dynamic pricing is inevitable if the sellers aim to create a successful, unique brand.
Table of Contents
- Revolutionizing Amazon Dynamic Pricing with an AI-Powered Solution
Revolutionizing Amazon Dynamic Pricing with an AI-Powered Solution
Changing prices is not a new concept in Amazon. For a decade, Resellers have been using rule-based pricing engines. The aim was to compete with the other resellers to win the Buy Box. All Amazon Sellers know this as they race to the bottom.
The strategy is great for the marketplace and consumers to have optimal prices, but reseller margins eroded substantially. Automated repricers also evolved to have rules to reach a higher price based on Buy Box ownership. But this didn’t help increase the profit margin.
During the ’80s, large retailers and brands came up with Regression analysis and Game Theory tactics. You can actively price your private label products the right way with these.
Amazon pricing is based on several features like customer demand, demographics, competition, weather, etc. Thanks to Big Data and Artificial Intelligence, brands started digitalizing their private label pricing strategies for the analog world. But for the digital brands of Amazon, it stayed untouched.
Data scientists and Amazon experts came together to create Eva. They’re always thinking about Amazon’s massive scale and competition combined with the Retail Pricing experience. Using Machine learning methodologies like Reinforcement Learning and Pattern Recognition was not adapted in the Amazon world for brand pricing before Eva.
We can name it God’s touch on Eva! It gives her the power to decide the most optimal price point for a product instantly. Before Eva, early adopters were luxury products and expensive. However, Eva made it affordable for any Amazon Private Label of any size to use the superpower of Amazon dynamic pricing — from newbies to historical brands.
How Private Label Pricing Will Boost Your Sales and Profits?
Eva brings the next-generation technology to Dynamic Pricing by Eva. Based on our case studies performed, Dynamic Pricing provides an additional 5% revenue increase alone in 30 days.
I know this doesn’t sound like marketing numbers. But we all know several factors impacting growth, and the price is just one of them. So it’s not even a reason but a result of several other actions. The fact is that Dynamic Pricing can catalyze the overall revenues in multiple ways.
Get the Best Results Out of Your Marketing Actions
Whether for store brands or as a digital marketing agency working for others, the result will be phenomenal if you use Eva combined with PPC or DSP. Marketing actions will trigger Dynamic Pricing to update the price based on the marketing activities.
This further boosts sales and profits, resulting in reducing the ACOS. The additional revenue can then be used again for marketing. That increases ACOS to Target ACOS, multiplying the effect of Dynamic Pricing!
Avoid Stock-Out Risk with Private Label Pricing
Running out of stock is a nightmare situation for any Amazon seller. Without a stock, your revenues decrease, and your listings become invisible in the eyes of Amazon. That has a drastic negative impact on your rankings, which eventually affects your search results on Amazon. Private Label Brands that use Dynamic Pricing to avoid stock-out situations and optimize their inventory-based Amazon rankings.
Outsmart Amazon Private Label Competition with Amazon Dynamic Pricing
Another surprising fact we discovered with the first 100 Amazon Private Labels using Amazon Dynamic Pricing was the competition. All private Label Brands claim they are the only ones selling their branded products. Other sellers, including Amazon, sell their products due to returns, retail arbitrage, online arbitrage, and other distribution channels.
Eva is dynamically pricing, monitoring the competitive landscape, and recording all actions like a movie. If required, Eva can compete with this unknown seller and sometimes let them sell their limited stock but constantly track them.
As we discussed price monitoring, a powerful analytics suite must understand the financial impact of pricing. That’s why Eva delivers actionable insights and analytics for daily sales, monthly sales, expenses, cost per SKU, and SKU analytics. Those give you the big picture of pricing with analytics to make the most profitable decisions for your business.
Amazon is dynamic, digital brands are evolving, and advertising is inevitable. Amazon Dynamic Pricing works for Private Labels with Artificial Intelligence to bring Amazon Sellers flexibility and adaptability. You can quickly react to the changes, catalyze marketing efficiency, and monitor the competitive landscape.
By hiring Eva, you can enjoy Dynamic pricing and Analytics and skyrocket the growth of your business on Amazon!
Sign up now to get started with a 15-day free trial.