Getting ahead of the game as an Amazon seller is quite difficult, but at least Amazon repricing software makes it somewhat easier.
Success on Amazon begins with understanding your competitors. Another one of your competitors includes the same hungry and skilled sellers in the market as you. Sometimes they sell identical products to you, which means that your product visibility and pricing are important to ensure maximum profitability.
Unfortunately, the more products you sell, the more it becomes impossible to keep up with your handiwork. Imagine how tedious it would be to keep up to date with the prices of your competitors, not to mention the need to manually update your prices in response to every change that is tracked.
Pricing software, also known as a “repricer”, is the best way to overcome this otherwise and impossible management of prices.
The repricer allows Amazon sellers to automatically compare and adjust prices for their products with those of competitors, regardless of who they are. Here is more in depth information on what an Amazon repricer actually is.
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Some Amazon sellers are still unsure of how the software works in order to reduce risk and drive sales.
Let’s take a quick look at the repricing software, how it works, how long it takes to update the pricing information, and how it fits into the overall your sales process.
Auto-repricing software is a technology where sellers can program price changes in their own name. To make this software work, sellers should set strategies with specific goals, such as owning a Buy Box or selling multiple units over a period of time.
Once these strategies have been developed, Automated Repricing Software will evaluate market data (such as competitor prices, vendor performance, such as feedback ratings, execution type, etc.) and make appropriate changes to the vendor’s prices.
One of the goals is to maximize the time your offers stay in the Amazon Buy Box. The automatic repricing software will compare market data, including the seller’s figures, with those of competitors and make suitable price changes on your behalf.
If you have goals that go beyond just owning a Buy Box, you can also install other pricing software to help you achieve these goals. For example, if you want to maximize profits, your pricing software may raise prices after you purchase ownership of the Buy Box. If you lose your Buy Box, your software will restart the process by lowering prices again.
When you set up your repricer, your ads are automatically filled in by the software through reports provided by Amazon’s Subscriptions API.
The repricer then reviews your products and analyzes offers from all sellers on a particular listing to identify a competitor.
Repricing software usually allows users to narrow down their competition only by competing with:
– specific types of performance
– sellers who have the right to Buy Boxes
– competitors with a seller’s rating above a certain level
– Sellers with specific indicators, such as number of days of processing, not exceeding or below a certain amount.
The copyist will receive updates from Amazon when the competition changes on the listing, and will respond to changes in the price of your products in accordance to your strategy settings.
Any price change always occurs in relation to the minimum price you have provided, ensuring that your products will never be sold at a price lower than the one you prefer.
As an option, you can set the maximum price to ensure that your products will never be more expensive than MSRP. It is well known that Amazon has consequences for users who set excessively high prices, therefore, you should not lose sight of the maximum price setting.
One of the most important reasons for using software for repricing is its ability to register changes from competition and react almost instantly.
The software reacts as quickly as Amazon allows – usually between 5-15 minutes.
Certain repricers aren’t capable of anything better than hourly adjustments, so it’s worth doing research before you start developing repricing software for your business.
Once you’ve set the parameters for your ads, including specifying minimum and maximum price points, and deciding on specific pricing strategies, you’ll be ready to start pricing, and the software will constantly work to promote your ads in the Buy Box as well as increase sales.
One of the reasons why repricing software is so efficient is because its model is repeated all the time. Even if sellers change the details of their ads, the software catches them and will adjust them in order to keep your ads competitive. Of course, you can keep and remove ads through this process. Repricing software will not include inactive, fixed prices or items that are not in stock.
The Amazon repricer makes a permanent price war on Amazon easy and manageable.
Your ads remain competitive, without having to constantly spy on competitors and make your price changes manually, saving you from countless hours of work and unnecessary stress.
The software also ensures that more potential buyers will see your ads, putting them at a better place on the listing pages.
Basically you are in a much better position – and perhaps the only viable position – to compete effectively and win a Buy Box.
Everything sold on Amazon has its own page in the listing, so if the same product is sold by more than one supplier, several offers will be attached to the ad. One winning bid will take the attention-grabbing “Buy Box”.
All other offers will be visible, but hidden in the section “Other Amazon Sellers”:
The way Amazon decides which seller owns the Box is a secret. However, price competitiveness is one of the key factors that has a significant impact on the situation. Winning a Buy Box is not an easy task for sellers, but the ROI can be huge, because more than 80% of sales on Amazon pass through the Buy Box.
Every day, often every hour, sellers will resell goods in an attempt to obtain (or regain) ownership of the Buy Box. One can try to do this manually, but most use sophisticated software to do it for them.
Many sellers fear that repricing strategies will lead to a race to a lower price, also known as the minimum amount for which they are willing to sell. However, with Automated Repricing Software, you can set the minimum and maximum prices for the software that you will be working with when seeking for the best Buy Box price.
Sellers around the world want to know if they should buy repricing software. Does it cost money? Do I need other software?
Yes, it’s true that you can log onto the Amazon system and manually reprice your products.
However, it is worth paying attention to the time and complexity involved in using automated repricing software. Automatic repricers take into account many different factors, and do so accurately and quickly. If you have more important things to do than analyzing and updating ads, you can be helped by software that offers better repricing options.
Success on Amazon begins with understanding your competitors. Part of your competition comes from Amazon itself, who can constantly adjust prices and stay at the top of the listings.
Another one of your competitors comes from similar sellers as you. Sometimes they sell identical products to you, which means that product visibility and pricing are equally important to ensure profitability.
Therefore, as an online business, it has become necessary to use Amazon repricing software.
About the Author:
Dmitrii B. is the founder of GRIN tech – a full-cycle whiteagency delivering design, development and marketing solutions.
