On Amazon repricing means price optimization. Sellers can adjust the product price to align perfectly with the contemporary market situation. This takes into account the product prices of the competition, shipping costs, and trends so that you make the most sales. There are many ways to do this, including three different strategies—manual, static, and dynamic repricing. Learn more about their differences here.
Why use repricers?
Sellers use a repricer because prices on Amazon change a lot each day, and you can’t just sit there all day to check whether the prices have gone up or down. You will need software to support you so you can focus on more important things, especially if you are a professional Amazon seller. Repricing is essential because it is the driver of your business into the Buy Box. It will help you find the best final price, which is the most critical metric to get into the Buy Box.
Manual repricing is the old school format where you do everything yourself, without any software. You do the whole market analysis, check what your competitors are doing, what kind of prices they are setting, and anticipate what they will do next. The main benefit of this strategy is taking complete control of your pricing. Another advantage is that you don’t have to pay service costs for repricing software. However, with manual repricing, it will consume most of your time. After all, prices on Amazon change rapidly, and if you can’t keep up, your other metrics will suffer. This will result in a drop in your seller rating.
Static or rule-based repricing
Static repricing uses computer software to identify the competition’s prices and undercuts them by the margin you set. The result is that you can earn more sales and profit or win the Buy Box more often. The advantages of status repricing are that Amazon repricer is free, and the higher Buy Box share leads to more sales and revenue. The problem is that it works with only one algorithm: undercut the competition at any cost. The Amazon repricer is known for starting price wars between sellers, where sellers have to sell undervalued and lose money.
Also called intelligent or algorithmic, the dynamic repricer will first let you win the Buy Box and continuously and gradually increase the price while you are still in it. In other words, it will keep you in the Buy Box, but you will not sell at the lowest price but rather the highest price possible. The effect of that is there are no price wars. Of course, algorithmic repricing is more expensive, but it can bring a higher return on investment, so professional Amazon sellers invest in these tools.
When deciding to go for paid dynamic repricing tools, check if the features will work for your business to make sure you are making the right investment. The best Amazon repricer should boost your sales and streamline your performance by keeping your products competitively priced.