Optimizing your Amazon listings doesn't just mean having the lowest price. Discover how to leverage an automatic Amazon repricer to reprice listings upward.
The online marketplace is a gold mine for your business — especially on Amazon and Walmart Marketplace. It's where you can launch a product and find the customers you need. However, there are also many challenges involved with selling on these giant marketplaces. After all, there are millions of first and third-party sellers, all competing for more online sales.
One challenge you'll face is managing your pricing strategy in the fast-paced environment of the Amazon and Walmart Marketplace. Competition can be stiff, so to solve this problem and optimize your profit margins, knowing how to use automated repricing software can give you an edge to stay ahead of your competitors.
What Is Amazon Repricing?
Amazon Repricing is a strategy sellers use to increase sales and profits. It involves raising or lowering your product's price as needed to ensure that it remains competitive in the marketplace and helps you take advantage of opportunities to increase profit.
The process of implementing this strategy can be done manually or automatically. The manual way involves logging into your Amazon seller account each day and adjusting prices on products as necessary. Automated repricing utilizes AI technology to determine the optimal price to give you a competitive advantage.
Why You Need a Repricing Strategy for Your Online Business
There are several types of repricing strategies.
Manual repricing
Rule-based repricing
Automatic repricing
Rule-based repricing follows repricing rules you set to adjust the current price, such as:
Undercut the Buy Box price
Target the lowest price
Match the Buy Box Price
Target the lowest FBA price
Beat the competition by a certain percentage
Developing a strategy for your repricing process will help you compete in the market and maximize your profit margins. If you want to be a successful Amazon retailer, it's essential to adjust prices based on competitor pricing or demand fluctuations in order to stay competitive and increase conversion rates. Repricing allows you to react quickly when there are changes within the marketplace in order to position your listings appropriately.
While in many cases, a repricer's primary objective will be making sure you're priced a bit lower than your competitors, in order to capture more sales, good repricers will also look for opportunities to raise your prices and capture higher margins when possible.
When Repricing Software Would Increase Your Prices
There are several situations where a repricer would increase the price of an item. While the primary goal of a repricer is to keep your prices competitive, it also takes into account other factors to ensure that you are maximizing your profits. Here are some examples of when a repricer would increase the price of a particular listing:
Low inventory
If you have only a few units of a particular product left in stock, a repricer may increase the price to maximize profits on the remaining inventory. This is because when a product becomes scarce, its perceived value increases, and customers may be willing to pay more for it. By increasing the price, you can take advantage of this increased demand and maximize your profits on the remaining inventory.
High demand
If a product is in high demand and you are selling a lot of units, a repricer may increase the price to maximize profits on the increased sales. When demand for a product increases, you may be able to increase the price without losing sales, as customers may be willing to pay more to get the product they want. By using a repricer to increase the price, you can capture some of the additional value that customers are willing to pay, while still maintaining your competitive position.
Better shipping options
If you offer faster shipping options than your competitors, a repricer may increase the price to account for the added value of faster shipping. Faster shipping options can be a significant competitive advantage, as customers are often willing to pay more for quicker delivery times. By using a repricer to increase the price of items with faster shipping options, you can capture some of this added value and maximize your profits.
Unique or exclusive items
If you are selling a unique or exclusive item that no one else is offering, a repricer may increase the price to account for the added value of the item's rarity. Unique or exclusive items often have a higher perceived value than more common items, and customers may be willing to pay more for them. By using a repricer to increase the price of unique or exclusive items, you can capture some of this added value and maximize your profits.
Competitor out of stock
Similar to the scarcity addressed above, if there is one main competitor on a listing that suddenly goes out of stock, it's a great time to increase your prices. As the only viable seller on a popular listing, you can command a higher price than before. A good repricer will monitor the competitive landscape across all of your listings and react immediately if any sellers leave the listing or run out of inventory.
Good repricers like Flashpricer allow you to control how your prices respond to specific competitors. You can match them, beat them by a penny, etc. You can also choose who to compete against. Buy Box owner, FBA only, MFN only, highly ranked sellers only. You can even choose to ignore partners or friends and not reprice against them.
Overall, while a repricer is primarily used to keep your prices competitive, it can also increase prices when it makes sense to do so, such as when you have low inventory or a unique product. By taking into account multiple factors, a repricer can help you optimize your prices for maximum sales and profitability.
Why Repricing Software Is the Solution
One of the best ways to ensure your product always has an optimal price tag is through automatic repricing software. Repricer software removes countless hours of price updates from your to-do list and frees up time to run your business while also staying competitive.
An Amazon automatic repricer utilizes artificial intelligence technology to determine a unique price for each of your products according to their demand and competition.
Real-Time Repricing To Keep Up With the Competition
Real-time repricing is an essential tool for every Amazon seller. It allows you to respond to changes in the marketplace and react quickly to competitor activity. As you grow your business, you will find that there is always a need for real-time repricing because it enables you to keep up with the competition and react quickly when demand increases or decreases.
No one can or wants to be glued to their computer 24/7, but in reality, those are the hours the pricing market keeps. Automated repricing software ensures that your competitive edge is always being cared for.
Locates Minimum and Maximum Prices for Strategic Upward Repricing
When you set up an automatic repricer to increase your price, it will use AI technology to automatically find the highest and lowest price the market will tolerate for each product. This results in the optimal price based on what other sellers are charging and how many people want to buy your product.
Your products being listed with the optimal price at all times not only optimizes your profit margins, it vastly increases your chances of being chosen by consumers over other sellers. In addition to better sales velocity, this also increases your opportunity for positive buyer feedback, making you a higher-rated seller and helping to grow your business.
Customize How High or Low To Set Prices Against Average Selling Price
An Amazon automatic repricer still allows you control over your pricing. You can customize how high or low to set prices against the average selling price, which means you have the flexibility to set limits and stay in control. You'll be able to use the average selling price as a guide for how much to raise or lower your prices and can rest assured that your products will never race to the bottom while simultaneously searching for the highest price the market will allow.
Whether you're using Amazon Live or influencers to get the best price for your products, automated repricing software is an integral part of beating the pricing game.
A Repricing Tool That Works With Your Pricing Strategy
There are many challenges to pricing your products on Amazon, but you can succeed with the right tools and strategy. With millions in competition worldwide on the Amazon Marketplace, it's imperative that you stay on top of your product pricing to remain competitive at all times.
Flashpricer offers automated repricing software that can help you set your prices so that they’re competitive and profitable at the same time. Flash Pricer utilizes AI technology to provide lightning-fast price changes based on real-time data. Our repricing software reacts at the highest speeds on the market, giving you the competitive pricing advantage you need.