Have you ever noticed that Amazon prices are changing every minute? Not only do sellers modify them frequently to stay competitive, but also Amazon itself alters the prices of millions of goods each day.
If you don’t want to miss out on your well-deserved profit, you have to incorporate repricing techniques into your price management strategy, which involves continuous adjustments of listings’ pricing.
Confused about where to begin with Amazon repricing strategies? Don’t know whether you should tweak the prices manually or stick to a dedicated tool? This guide will provide you with all the information you need.
Manual vs. automated repricing
Before you learn about various repricing tactics and begin applying them, there is a choice for you to make – either use automation software to change prices or do all the hard work yourself. Both options have positive and negative sides, which we’ll explore below, so you can decide which option fits your business the most.
Changing the prices manually
This method involves manually tweaking listing prices in Amazon Seller Central to match or compete with other merchants’ prices. It requires going through each listing and competitor listing individually, making calculations, and appropriate pricing adjustments as a result.
Even though the modern market offers an array of repricing tools, some merchants prefer the manual method over the automatic one since they aspire to have complete control over price updates. Indeed, it is a viable repricing option for merchants with small product catalogs or those who sell low-competition items like handmade ones.
Experienced sellers consider manual repricing unreasonable, especially when it comes to high-volume catalogs. Unless you have fewer than 10-12 listings, keeping pace with Amazon and the rest of the vendors becomes challenging and exhausting. In addition, frequent manual price adjustments can lead to errors or incorrect entries, resulting in costly pricing mistakes and loss of hard-earned money.
Changing the prices automatically
Automation software is a smarter and more efficient way to reprice Amazon’s inventory. Such software works non-stop to keep your prices properly optimized. Before making any alterations, it takes into account numerous factors, like price-related actions of competing sellers, general market situation, essential seller metrics, and others.
Automated Amazon repricer tools are popular among sellers for several reasons:
- Major time-saver. Repricing solutions carry out all the work for you, eliminate the need for manual intervention, save you valuable time, and allow you to focus on higher-priority tasks.
- Enhanced profitability. With the help of software, you’ll be able to establish repricing rules that are in line with your targeted profit margin and regularly maximize your earnings.
- Potential sales growth. Winning the Buy Box is crucial to driving sales on Amazon, and using automated repricing can help you achieve this by maintaining competitive pricing.
- Competition insights. Repricer tools give you a competitive edge by providing key insights into your rivals and their prices, so you can fine-tune your pricing scheme and get ahead of the game.
If you have an extensive product selection and countless competitors, automated repricing is the proven way to remain competitive with minimal effort, leaving no place for human error. As a rule, such solutions aren’t cheap. But you can always begin with a free trial to test the waters and determine if the benefits of automated repricing outweigh the costs.
6 Amazon Repricing Strategies to Master Selling
Incorporating automated repricing strategies can be a game-changer for Amazon merchants. Whether you’re new to repricing or looking to enhance your existing tactics, take into account these six techniques to win more Buy Boxes and drive sales.
№1. Tailor competition to your advantage
Rather than lowering prices to get more orders, automated repricers can be used to help you tweak your competition to your needs. Sellers with terrible ratings and poor feedback would only make your prices drop even lower, so you can exclude them.
Besides, if you are an Amazon FBA merchant, you can adjust the settings to ensure the repricer targets only specific FBA competitors, allowing you to keep prices at a profitable level and capture sales.
№2. Establish Min and Max prices
This is an initial and crucial step when using a repricing solution, which auto-adjusts prices between the specified range per your competitor’s moves. It prevents prices from dropping below the minimum level. Additionally, the solution can raise the price to the highest value to gain maximum profits when the competitors’ items have no stock available.
№3. Dominate the Buy Box
Securing the Amazon Buy Box is the ultimate goal for any Amazon merchant, as it provides prime visibility to shoppers. To be eligible, you have to adhere to specific criteria, including reasonable pricing, reliable fulfillment methods, fast delivery times, and positive merchant ratings.
If dominating the Buy Box is a priority for your business, we suggest using an automated repricing solution like M2E Amazon Repricer https://m2ecloud.com/amazon-repricer.html.
It provides a rule specially designed for merchants to secure a place in the Buy Box. The app adapts pricing in response to the competitors’ activity and determines the optimal price for your offers while retaining the Buy Box.
№4. Steer clear of becoming the cheapest seller
While setting the lowest price may attract customers, they’re becoming more discerning and looking for additional value beyond the price, such as quality, shipping period, packaging, and customer service level based on reviews.
Buyers may opt for a higher-priced product from a merchant with better feedback over a cheaper one. Offering the lowest price may even lead customers to question the item’s quality and service. Therefore, being the most affordable seller on Amazon doesn’t always guarantee sales.
№5. Include shipping rates
Don’t forget about shipping charges to avoid losing sales when working on your repricing plan. Since Amazon presents listings based on the standard price and shipping charges, it’s crucial to factor in shipping when altering your pricing and tracking your competitors’ pricing.
An automated Amazon repricer analyzes the total prices (including shipping) of competing vendors and adjusts your listings accordingly, preventing you from calculating it by hand.
№6. Factor in the item’s condition
Pay attention to the item condition when deciding how to set up Amazon repricing strategies. If you’re selling second-hand goods, prices for used items shouldn’t be higher than those in perfect condition. Likewise, when putting in prices for new items, ensure that yours are more expensive than the used ones.
Some of the repricing tools even offer you an alternative option to only beat items that have the same condition as yours.
There is no guaranteed method for achieving success as an Amazon seller, and it may take some trial and error to find what works best for you. Ultimately, top-notch repricing software is the most reliable way to outperform the competition.
Without a well-thought-out pricing plan, established or potential merchants can’t sell profitably. A powerful Amazon repricing tool will help you build a realistic repricing strategy and bring it to life while closely monitoring your competitors and driving your sales forward.