As competitions in Amazon grow tighter, the role of automatic repricing becomes more relevant. Amazon repricing is no longer just a fad but a strategy that every seller should adopt to remain competitive. That holds especially true given the rapid digitization of systems to ensure efficiency and effectiveness.
In this article, we’ll show you how Amazon repricing tools work and which features to consider to choose the best ones. With numerous options available in the market, it’s easy to get swayed by the marketing tactics, even if the selected tool does not make a good fit for your repricing strategy.
What’s with Repricing?
Today, Amazon sellers are repricing their listings at regular intervals. That could be as much as several times a day, depending on the niche and the competitiveness. Sellers who could not match such pace ended up losing customers and sales. Without advanced repricing tools, they cannot keep their prices updated and competitive.
That is how retail sellers beat the competition to their favor as avid and new customers get the same item at a comparatively lower price.
Here is the thing. Ensuring an adequate rate and comparatively lower pricing than other sellers is a measured approach to boost your expansion. With that, you can sell more products and attract positive customer reviews, which are among the most critical factors in the online world. With excellent reviews, you have a higher chance of winning the coveted Amazon Buy Box.
Take note of this, though. Amazon repricing is not only a growing trend. Think about having to reprice all the products listed in your Amazon store multiple times a day. Can you manage with all the hassles of it while handling other operations of your business? Is that even possible?
Do you think you can adequately monitor all real-time pricings at the same time? Undoubtedly, the obvious and sane answer is no. This, where repricing tools now come to the rescue, can help you accomplish the tasks more efficiently.
Again, there are various options in the market, each with distinct features to offer. Let us now walk you through essential pointers in choosing the best Amazon repricer.
Pointers when Choosing the Best Amazon Repricing Tool
The first step in choosing whatever strategy or approach geared to improvement is first, knowing your business. Make sure that you have identified your sales performance’s major figures.
At the same time, you should work out your products’ relative returns over the past hour, day, week, month, quarter, year, or even more. You can also assess historical performances, including the downsides and sudden improvements.
Once you have an organized compilation of these essential indicators of your Amazon store, it is time to assess them and review your sales price and rank history. That’s how you will know whether an item is worth spending on or replacing. Carefully study and understand how history evolved and which factors or pricing standards led to the results. From that, you can then identify the ideal repricing strategy.
It is also imperative to have a clear and accurate assessment of your inventory level, and after checking your stock, you can then reprice your listing. To avoid running out of stock, you have to establish relevant and particular pricing rules that match the given inventory.
As part of knowing your business well, you should likewise thoroughly study and analyze the competition. With all the many sellers in Amazon, can you determine and define your competitors?
It is important to filter and narrow your attention to competition via various standards since it is virtually impossible to compete with all the other Amazon sellers. Do consider the shipping destinations, seller feedback, and seller rating.
Then, roll up a concise list of your business’ competitors. After knowing and understanding all the possible factors that deeply impact your sales and price, it is time to craft a strategic unit repricing strategy.
If there is no concrete reason and plan, don’t ever drop the price. But for your store to survive a period with a sudden price decline, you should ensure the availability of resources. In that way, your business remains afloat even if other sellers get dragged by the situation.
Which is the Right Amazon Repricing Tool?
There are currently dozens of repricers in the market, and more are sure to emerge since the Amazon repricing trend keeps rising. Here are the major types of Amazon repricing tools you can use to set your product listings’ prices. Every type comes with various features and functions that fit different business types. Make sure to pick the tool that meets your business’ standards and situation.
- Manual Repricing Tools
Whether done via third-party applications or the Amazon Seller Central, repricing manually lets you adjust or change a listing’s price yourself. Although it takes more energy and time, it gives you a better overview and control of your pricing strategy.
Manual repricing is the ideal option if you’re selling a unique item without any competitors, and if you have a little amount of inventory. That also applies if the manufacturer sets a fixed price on the item you’re selling. However, manual repricing is not the best option if you’re a busy seller with multiple products.
- Rule-based repricing tools
Rule-based repricing looks at the competitors’ prices for each product, and then adjusts your price based on a set of predefined rules. Before activating the tools, sellers need to identify the rules. For example, you could decide to beat the competition by $1.05 and correlate with the lowest price.
As soon as your competitors change details on their listings, this type of repricing tool will also set price changes. But there are limitations. For one, setting rules can drain a lot of time and even lead to conflicts. That means you will need to manage it continually.
- Algorithmic Repricing Tools
Algorithmic repricing represents the intellectual feature of repricing tools. To identify the most competitive price, it makes use of computer algorithms. It can set the best pricing based on competitors’ rates, Amazon Buy Box metrics, market conditions, and promotions.
Once it finishes monitoring all relevant dates, it will automatically set the price, ensuring a proper balance between the price and profit margins. Although this kind of tool also entails an added time and energy to set up, it can generate the best results.