Here’s a fact to ponder on: Orders placed via the Buy Box account for over 80% of Amazon’s website sales. This is why every seller dreams of winning that highly-coveted white box on the right side of the product page that allows customers to quickly and directly add the item to their carts.
Thanks to Amazon seller analytics and resources like Amazon repricing software, listing optimization apps, and the FBA calculator, online merchants are now able to spend more time planning on how to win the Buy Box instead of doing manual labor.
With over 2 million active sellers on the platform, it’s imperative to have the right tools and strategies to be ahead of the game and to stay ahead of your competitors. You can leave tasks like manual calculation, price comparisons, data tracking, and regular uploading of new prices to automated systems while you focus on your sales and marketing efforts. Let’s take a look at one tool that many sellers find crucial: repricers.
How Repricers Work
Merchants repricing to win at price wars is a common occurrence. Price-motivated shoppers are likely to buy from the store that offers the same product for a lower price. The dilemma is whether or not to bite the bait and lower your pricing even further in order to win that customer. Won’t it compromise your profit margins? Is there a way to avoid price wars?
Let’s say you finally win the Buy Box. Can you retain this consistently based on how you’re currently pricing your products? How do you keep your Buy Box while ensuring that your products are optimally priced? These are things that a reliable repricer can help you with.
In essence, repricers work by comparing your listings to those of your competitors and getting you to a price point that doesn’t compromise your profitability while still getting you that sale. The more advanced AI repricers are able to “think” like an Amazon seller and outperform the competition.
These apps may have different designs and processes. The more advanced ones have additional features or a different repricing strategy. In general, this is how a repricer works:
- The user sets the parameters and repricing strategies (lowest and highest prices allowed, target profit per sale, frequency, hours and dates covered, sellers to monitor based on metrics, etc) and launches the app.
- The process starts when a listing from a competitor is updated. This could be a price change, update on the offer, handling time, etc.
- The app detects the change, analyzes the data, and changes your price in accordance with the repricer strategy you have previously set up.
- The system uploads the new price to Amazon, which checks against the minimum and maximum values you have saved on your Amazon Seller Central account.
- The new price is reflected on your listing.
Why Sellers Need Amazon Repricers
Time and Cost Efficiency
Manual repricing is a full-time job in itself. Consistently getting the right price point is key to your success as an Amazon seller. The problem is that you, most likely, won’t be able to manually check and update hundreds of listings 24/7. Running a repricer allows you to focus on planning your promotions, improving your marketing strategies, and scaling your business, instead.
Timeliness
Prices of goods fluctuate by the minute, and repricers are able to react and update your product prices within 5-15 minutes after it detects the change. Because it constantly monitors the behavior of your competition and updates your prices accordingly, your listings remain competitive 24/7. The better apps are able to drive price optimization close to real-time and as frequently as needed.
Speed and Accuracy
Manual repricing takes time and a lot of effort. This can also yield miscalculated data and inaccuracies, which should not be used to implement a business strategy. Prices change rather quickly, so it’s important to upload new prices in real-time. This is impossible if you are selling multiple items.
An algorithmic repricer can monitor and update hundreds of listings quickly and can outperform any human being doing manual price checks, analysis, and repricing.
Competitiveness
There are several available repricing tools. The best ones focus on pricing your products optimally to maximize profit. This way you can win a Buy Box share at the best – not necessarily the lowest – price.
Some allow you to adjust your parameters so that it employs different repricing strategies on certain hours or days, which can be useful for flash sale promotions. The goal of the Amazon repricer software is not to race to the bottom of the pricing scale but to get to the best price that allows you to compete with other sellers while increasing your sales and profits at the same time.
Buy Box Focused Settings
Some repricing systems allow customizations, such as activating the Win Buy Box setting offered by Seller Snap. With a more aggressive and focused approach towards winning the Buy Box, this algorithmic repricing may employ a deliberate strategy to liquidate the inventory and help you dominate the Buy Box at the highest possible price.
Conclusion
Repricers work well with entrepreneurs focused on excelling in Amazon. It saves them time and money while offering the best repricing strategies to meet their business goals. With online sellers aggressively pricing their products too low, you may be tempted to do the same. Repricers allow you to sit back with confidence knowing that your products are optimally and competitively priced 24 hours a day, 7 days a week.
