Amazon now accounts for 44% of all online sales in the U.S. So it has become clear that it is one of the most beneficial markets to be selling on. However, with an increase in consumers also comes an increase in competition. This makes it essential to have a top pricing strategy to make your products stand out from the rest.
Using a repricer is the best way to make sure you have the most competitive prices on the market. This leaves you time to focus on running the other aspects of your business while the repricer automatically does all the work for you.
But, what exactly is repricing?
First, let’s discuss what exactly it is that a repricer does. Repricing software works by comparing your products with others on the market to make sure yours offer the best price. However, there are various repricers out there that function slightly differently, so here are some key things to look out for:
- Repricing rate: Repricers will vary massively in how often they check the competition for pricing updates and adjust your prices to reflect the market changes. Obviously, the more frequently price changes are checked, the more likely you are to stay ahead of the competition, especially if you’re up against someone else using a repricer.
- Price: Again, the cost of repricing software can vary massively with some repricers coming in as high as $400/month and others as little as $9/month.
- Ease of use: There is no point in having a product with a multitude of features that are difficult to use or understand. Make sure you go for an option that you can navigate with ease.
Pricing Strategies
Once you are set up on a repricer you can use it to set up different ‘strategies’. In other words, the rules you want your listings to follow. These can be set up or changed to whatever you think will be most beneficial for each product. For instance, on some products you may want to price your items so that they are always lowest amongst your competitors. With other items you may wish to get them down to the lowest price that will allow you to get the Buy Box. You will always be able to set your minimum and maximum price for each listing to make sure that you will never be repriced out of a profitable margin.
The Buy Box
As outlined above, gaining the Buy Box can be one of the most illustrious ways to maximize profit on listings. However, one of the vital flaws within many repricing systems is that once the Buy Box has been won the listing will stop repricing so it doesn’t end up competing against itself. Whilst this ensures you will have the Buy Box, there is a possibility you could be retaining it at a higher price as the market changes around it.
Maximum Price Reset
As outlined above, gaining the Buy Box can be one of the most illustrious ways to maximize profit on listings. However, one of the vital flaws within many repricing systems is that once the Buy Box has been won the listing will stop repricing so it doesn’t end up competing against itself. Whilst this ensures you will have the Buy Box, there is a possibility you could be retaining it at a higher price as the market changes around it.
At Seller Republic we have found a way around this problem with our Maximum Price Reset feature. It essentially works by raising your price to your maximum allowed setting at around 2 a.m. (the standard time of the marketplace where you are selling) when historically it is very unlikely any sales will be taking place. This price raise will mean you lose the Buy Box momentarily but it will also retrigger repricing. This means you will quickly and automatically get back down to owning the Buy Box but now at the highest possible price taking the current competition into account.
If you are in possession of the Buy Box all you have to do is put this strategy in place and your listings will automatically update each day so that you have the Buy Box at the highest possible price. While you may just be happy to retain the Buy Box, the potential profits from this simple and automated tool can be substantial. For instance, imagine the price of an SKU increases by just $1, even if this is a product that only sells 10 units a day, that’s still a $300 increase in profit a month. And that’s just on a single product!
Learn more about the benefits of Maximum Price Reset and using a repricer at Sellerrepublic.com.
