On Amazon, sellers’ top priority is always to stay ahead of competitors. However, product prices fluctuate constantly, and repricing is one of the key ways to success. As a seller, your options are to either create a consistent repricing schedule or use a software solution that does the job automatically. It sounds simple, but many sellers are bound to make common repricing mistakes on Amazon.
In this article, let’s cover the top repricing mistakes sellers make and ways to avoid them.
Most Common Amazon Repricing Mistakes and Solutions
1. Forgetting That Price Gets The Buy Box
First of all, price is the most important factor determining who wins the Buy Box. Even though Amazon does not share the exact algorithm, many sellers and experts have come to this conclusion through various tests. Therefore, you must set your prices correctly, and repricing one of the common strategies.
How to Solve?
In order to remain competitive, you should consider using a repricing software. We cover the exact reasons for this a bit later. Even though the price is a crucial factor, other metrics such as order defect rate have some influence over the chances of getting the Buy Box position. It could be that your competitor’s late shipment or negative review gives you the spot.
2. Using Ineffective Repricing Methods
There are two ways to do Amazon repricing, either manually, meaning you are in charge, or automatically by a software. Repricing yourself gives you a lot of control over your Amazon business but can be more time-consuming. In fact, you would have to manually investigate your competitors constantly and adjust the prices accordingly. Moreover, the chances are that unfortunate human errors occur more frequently. Therefore, we suggest you use an automated repricing software to avoid mistakes.
However, automatic repricing also has its problems depending on the type of the software. Most Amazon repricing tools rely on rules and algorithms to work and are limited by the developer’s capabilities.
How to Solve?
Whether you reprice manually or utilize a repricing tool, you should explore different repricer strategies and choose the one that works the best for your business. However, competition on Amazon can be fierce and it’s hard to keep up with the continuous market changes. We recommend you utilizing AI-based software that makes intelligent repricing decisions much faster.
Despite how intelligent your repricing software is, keep in mind that you are still in charge of your business. By evaluating past performance, you get the idea of what products are trending and use this knowledge to make your software work at maximum efficiency.
3. Not Calculating Overall Costs
Typically, Amazon repricing has been a so-called ‘race to the bottom’ in which the sellers continuously lower their prices to win the competition. Naturally, this strategy does notwork if you are not up to date with all of your costs. These kind of sellers are putting their profits at risk. Upon the rise of the latest AI-based repricers, this method is not only becoming outdated but involves a risk of going below profitable margins.
How to Solve?
In order to avoid this kind of situation, you have to consider the overall costs. Both direct costs such as product price and shipping and indirect costs such as employees’ salaries have a significant impact on your profitability. Your Amazon selling costs mostly depend on the fulfillment method you use and the categories that the products fall under. Consider in your calculations also other solutions outside Amazon such as consultants that you might need to run your business
4. Not Setting Min/Max Pricing
A common Amazon repricing mistake, especially among new sellers, is not setting the minimum and maximum prices correctly. If you set the price range too close, you have no room to take agile repricing actions. On the other hand, too low prices cut your profits and too high ones probably won’t sell in the first place. Therefore, setting the prices correctly has a significant effect on your competitiveness and profitability.
How to Solve?
If you use a repricer software, setting the min/max prices for your products becomes easier and faster. Furthermore, it automatically raises the prices or brings them low based on the product’s availability and the demand rate on the site.
5. Conflicts Between Min/Max Prices on Amazon and Repricer Software
Most often, when you use a repricer software, you set up a minimum and a maximum price for all your products. However, when you start repricing, keep in mind that Amazon has minimum and maximum price validation for each ASIN. If you use both a repricer software and Amazon’s Automate Pricing, the chances are that there are discrepancies between the minimum and maximum prices that you set. The problems occur when the prices don’t match and as a consequence, Amazon deactivates your listing if your product’s price exceeds either of the limits.
How to Solve?
In order to avoid these conflicts, you should use a competent repricer tool that can determine these maximum and minimum prices based on Amazon’s recommendation. For instance, Eva dynamically calculates the pricing points where the limits can be exceeded and avoids that by setting a dynamic price range. This keeps your listings active and prices eligible for winning the Buy Box.
6. Running Out of Stock
Going out of stock is not really a repricing mistake but still a common problem among Amazon sellers. If you don’t have inventory to sell, obviously you aren’t eligible for winning the Buy Box and you don’t make any sales. In this kind of situation, repricing becomes pointless. Moreover, running out of stock negatively impacts your Amazon BSR ranking, and recovering takes a reasonable amount of time.
How to Solve?
You have to make sure you always have products in stock. Additionally, you can prevent running out of stock by using a repricing software that utilizes dynamic pricing. Software such as Eva Intelligent Repricer is capable of automatic repricing decisions based on your inventory level. When your inventory is at healthy levels, it focuses on profit maximization. On the other hand, it prioritizes inventory if you are running dangerously low.
Now you know the possible Amazon repricing mistakes, and how to solve them. However, if you want to avoid making these mistakes, you should invest in a competent repricing tool. Especially because one of the biggest mistakes the Amazon sellers make is to use manual repricing methods.
First of all, manual repricing is a bad idea because you could spend that time on higher-value actions to accelerate your business growth. Secondly, repricing minimum and maximum prices manually quickly turns into a full-time job as your SKU count increases. On the contrary, many sellers think the number of Amazon SKUs is not enough to use repricing software. This kind of thinking limits the potential of their Amazon stores.
How to Easily Avoid Amazon Repricing Mistakes?
If you are unsure whether you’re repricing your products correctly, take advantage of Eva’s Intelligent repricing technology. Artificial intelligence makes smart and automated repricing decisions regarding min/max prices and price optimization. After a short while, you will start winning the Buy Box frequently and make much more sales than you did previously.
Eva is accessible for all Amazon sellers regardless of the number of SKUs. Try out our dynamic repricer with a 15-day free trial and sell more profitably on Amazon.