How can Artificial Intelligence repricer help Amazon sellers to grow?
After a decade of running our own Amazon business, when we decided to create Eva, we had one idea in our mind. We want to make it as simple as possible. Not only as an AI-based repricer software but also to reduce the number of people required to run a large Amazon business. We wanted Eva to be hired rather than to be used. As Amazon sellers, we had challenges with pricing, replenishment reimbursement advertising challenges. We have to start from somewhere — and decided to start with pricing changes using an AI-based repricer.
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Understanding the Non AI-Based Repricers
Amazon provides sellers and developers with APIs that can help you to set the price. That’s the easy part, but the problem starts when competition becomes very complex. We used all Repricers available in the market. Informed.co, SellerSnap, Repricer, GoAura, Repriceit, and Channelmax are some of them.
The challenge here is that they all claim their repricers are algorithm-based or rule-based, which is correct. Still, rule-based or algorithm-based pricing becomes very complicated as the business grows, and either the Amazon seller or an assistant needs to maintain the rules for each SKU. If you don’t stay on top of your SKUs, you will lose money.
I know some sellers love to play with the rules or hire someone to do it. We thought it’s not our business to play with the pricing all the time. Our job is to find, design, or manufacture the best products for the best deal and get them to the market.
Why is AI the key success factor for repricer tools?
Being Computer Engineers and having a history of AI for 25 years, we know how AI can help to create Eva. An autonomous pricing engine, without predefined rules, selecting strategies, designing workflows, picking algorithms, can do the entire job of selling faster and maximizing profits simultaneously.
We started by picking up the right Machine Learning algorithms, tailoring them to Amazon data, and let Eva create the next best price for a given product faster than anybody else. Results are phenomenal compared to every pricing software available in the market. We have observed on average 20% more profits in 15 days! Plus, Eva was able to grow revenue as well as profitability at the same time.
We continue to enhance the AI algorithm and get better results both for Private Labels and resellers without spending any minute on this job. Eva acts as a part of the team, eliminating the need for software and the need for assistants to run it. We visualize the whole competition, which is unique to Eva, and let Amazon sellers watch how things work and give us feedback if they want to.
Why is Eva different from other AI-based repricers claimed to be?
It’s effortless to hire and test Eva as you can start in a few minutes, monitor the results transparently, and Eva will learn all the time from your and your competitor’s behavior.
After the great success of Eva in 2020, without marketing or paying too much money to affiliates for backlinks, many others started to claim that they have AI-based software. Well, it would be great to have more technology companies like Eva come up with advanced solutions to help Amazon sellers more. Still, unfortunately, 99% of these claims are a scam, nothing more than marketing statements. Hence, I decided to list Dynamic Pricing 2.0 standards for Amazon Sellers to be ready for Amazon’s future.
Here are the nine standards for AI-based repricers:
- AI-Based Pricer means there is no need to select or design algorithms on a rule/algorithm engine. For example, if it’s an FBA listing, reduce the price by 1%, or if it’s an FBM listing, do not compete, etc. In fact, we observed that such rules are typically limiting the ability to compete dramatically, and once your rule is exposed to competitors, it can always be abused.
Eva detects such competitor rules quickly and creates anti-actions against the rule/algorithmic pricers. To give you an idea, for all existing repricers, Eva catches the simple step rule like 1% or 1 penny down and creates an anti-rule like 2% down and 3% up. The competitor cannot get the buy box first and later thinks the price is already below the competition.
- AI-Based Pricer is much faster than any rule/algorithm engine: The rule engines use a lot of computer power and typically price dynamically between 10mins – 30mins. However, they claim to price between 5mins – 15 mins. Eva can be faster (less than 2 mins) or slower depending on the competition but always be one step ahead of the competition.
- AI-Based Pricer is aligned with Amazon Fair Price Policy: It’s impossible to configure a non-AI pricer to discover how Amazon’s fair price policy works. As a result, some of the SKUs are often deactivated due to Min or Max pricing errors. The non-AI repricer recommended the solution to update Amazon Min Max price settings and reactivate the SKU. This is madness and a lot of manual work. Eva detects the Amazon fair price policy and aligns the Max price accordingly and, in case of any deactivation, automatically reactivates the listing based on the Amazon policies.
- AI-Based pricer can price FBA and FBM SKUs together: It would be fun and a great puzzle to set a rule/algorithmic repricer to price the same ASIN as both an FBA and an FBM SKU. Some of the advanced sellers use this to avoid stock-outs, as well as create advance for non-prime members. Eva will ensure both SKUs are simultaneously priced, and FBA one is favored.
- AI-Based pricer knows the SKU Inventory State: Whether your SKU is backordered, inbound, or available, Eva knows your inventory status and analyzes the competition in the same way. Shipment times are the critical factor, along with the listing price. Due to the unpredictable growth of e-commerce, it’s becoming the most important. Consumers tolerate higher prices if the shipment is faster. Amazon knows that, non-AI Based pricers don’t!
- AI-Based pricer knows BSR / Impressions / Clicks / Sales Velocity / Category / Inventory Quantity: This is the killing part, also the most important factor for the Private Labels. Eva does not look at only the pricing but all the parameters in the context of eCommerce. For a low-selling SKU, Eva may behave differently in competition compared to a high-selling SKU. If Amazon Advertising is implemented, Eva can maximize the profits for the same Sales Velocity. If the Inventory is low, Eva can avoid or delay stock-outs. It’s impossible or not scalable to implement this with non-AI pricers.
- AI-Based pricer learns from the competitive behavior: AI-based repricer changes the action according to the competiton, where rule/algorithmic-based pricers are static, meaning for the same input, they always react in the same way. There is no learning process with the non-AI pricers, where AI pricer evolves over time. In that respect, I also would like to highlight the fake AI pricers. In reality, they are pre-configured templates that are served as AI by several vendors. The key point of AI is learning, and these pre-configurations do not learn. They are not only dumb but also need to be changed anyway if the circumstances change.
- AI-Based pricers change the behavior based on the context, although context may not be logical: This means, in case Amazon changes the Buy Box algorithm slightly, which happens from time to time, AI-Based pricer will adapt the new algorithm in a short period of time and update the decision-making logic. Indeed all the rest of the pricers do not change the way they work even if Amazon changed. You can notice them as they blame Amazon for the Buy Box algorithms and request the sellers to change everything. We always believe it’s not the sellers’ duty to check the Amazon algorithm but the repricer’s capability to learn and adapt.
- AI-Based pricers do not need a step-by-step approach where Rule/Algorithmic pricers always act on baby steps like 1% down or 1 penny up. Eva forecasts the best to be between Min and Max, which can win the buy box and maximize the profit. A Rule/Algorithmic pricer can arrive at that point in 30 steps by testing, and typically it will take a few steps for Eva to be at the optimum point for a given competition. This creates a fundamental shift from Rule/Algorithmic based to AI-Based pricers.
Bottom line, we have tested all pricers that claim to have AI-based solutions, and in truth, we have not noticed not even one of them that is AI-based. We have noticed that some created pre-configured rules or algorithms, but that’s not AI. That’s not even a basic AI. Perhaps we can call it fake AI. Eva visualizes the entire competition and it’s 100% transparent how AI works. The rule-based pricers at maximum have audit trails of pricing but do not deliver the context of pricing.
It’s now time for Repricer 2.0 to be successful as it will be better to use Eva rather than a competitor using Eva. You can focus on your most important tasks and leave pricing to Eva. Eva will evolve as your Amazon business evolves and as Amazon buy box algorithm changes. Eva will always maximize your profits and help you sell faster at the right time. If you are using any Repricer technology and it’s time to upgrade to the champions league, we have a program for you. If you qualify, you will get up to 3 months of free Eva-AI pricing, depending on the package you sign up for.