Amazon is one of the best online marketplaces for both buyers and sellers. There are 310 million customers worldwide and well over 2 million Amazon Seller accounts. The number of sellers is growing daily, and the competition is getting even more challenging. That’s why Amazon Sellers automate their workflow using software and tools. One of the most popular automation tools is an Amazon repricer, whose primary goal is to adjust the prices of your Amazon products. In this article, we will discuss the product repricing process and explain the benefits of a repricer.
What Is a Repricer?
A repricer is software that automatically changes the prices of the seller’s products. Amazon repricers help sellers by adjusting the price, giving them a competitive advantage over other sellers, winning the Buy Box, and leading to more sales.
Adjusting your prices manually is nearly impossible because sellers must keep up with millions of product prices changing daily. That’s why one of the benefits of a repricer is consistently tracking product prices and changing your own to give you an advantage over other sellers.
What Are the Main Benefits of a Repricer?
Every Amazon Seller has a unique strategy for increasing sales and profits by selling their products on the Amazon marketplace. Regardless of the strategy, every seller’s key element is having a good price for the buyers and the product. You have to compete with other sellers and still make a profit. That’s why we have made a list explaining the main benefits of a repricer.
Pricing Process Automation
As mentioned before, manually adjusting product prices can be time-consuming and almost impossible. That’s why having an Amazon repricing tool can help change and adjust prices even in bulk listings, making it easier for the seller to have control and competitive prices on their products.
Increased Buy Box Win Rate
The most influential benefit of a repricer is winning over the Buy Box. To do so, a buyer must consider the following 3 metrics:
- Refund (Learn more about Amazon Refund Policy)
- Late shipment rates
When these metrics make the most affordable combination given the value of the product, Amazon considers it the best deal, and therefore, it wins the Amazon Buy Box.
By separating the main deal from the other offers, the Buy Box solves the “too many options” problem, saving the customer time and helping him make a better decision while simultaneously increasing the seller’s sales and profits.
Better Search Result Ranking
A huge benefit of a repricer is getting sellers a better ranking when someone searches for their product. Amazon’s search algorithm considers several factors when prioritizing product listings in search results. And one of the factors is your product price. That’s why when your product has a more competitive/lower price, the higher the chance your product appears in the search result, Increasing its visibility to potential customers.
Why are Repricing Strategies Important for E-commerce Marketplaces
By following the rules and principles of Economics, sellers need to form an equilibrium price based on supply and demand. Therefore, their prices always need to be at an optimal level. Remember that it’s impossible to set a fixed price for all products on the market; this allows e-sellers to set their prices at a market floor and ceiling.
Quick Note: Market floors are simply the lowest prices retailers can set as a product distinction while still profiting. The market ceiling, on the other hand, is the highest possible price for which you can sell your goods.
As you can notice, the price of products is inconsistent and is subject to change as the market shifts in prices. This is especially vital for online businesses because e-commerce constantly changes and accepts new competitors.
When developing a solid repricing model for your e-commerce business, keep in mind that price isn’t everything. Setting the lowest price to beat the competition isn’t always the best way to achieve business success. Furthermore, your customers expect more than low prices in the modern consumer landscape.
Shoppers nowadays prefer a variety of benefits from their e-commerce retailers, such as fast or low-cost shipping or a unique price (3 in 1). It has been discovered that a high percentage of customers will buy from a store that offers free shipping, even if it means paying more.
Why Do Repricing Tools Work Well with Amazon?
We see significantly more repricers for Amazon than for any other marketplace, and this isn’t just because Amazon is the largest. There are three major reasons for this:
- The extensive API provides a wide range of information data and facilitates integration with 3P repricers and other SW solutions.
- The catalog-based system (ASINs) facilitates “apples-to-apples” comparisons. A buyer understands that he is getting the same product from various sellers. The competition is based on price and the overall buying experience that any individual seller can provide.
- The Buy Box predicts successful sales very well (relatively speaking). This is because the success of a price change in getting the Buy Box can be seen instantly, whereas the effect of price changes on sales and profit takes much longer.
Overall, using a tool that saves you a lot of time and helps update thousands of prices in a matter of seconds improves your workflow. This is why repricers are very popular among Amazon FBA Sellers, and using one is always a good idea.