Creating a well-designed Amazon repricing strategy is essential to selling items successfully on Amazon. Not having a proper strategy is like going on a road trip without learning the best way to reach your destination.
Thus, a proper Amazon repricing strategy can assist you to improve sales, increase profitability, and also maintain a very competitive edge on Amazon.
Here, we’ll discuss the basic principles of a useful Amazon repricing strategy as well as provide you with tips to increase your profits.
Why Is Amazon Repricing Important?
There are numerous good grounds to reprice a product on Amazon. Here are some of the most significant ones:
Win The Buy Box
This’s the most essential factor out of all the other factors. As soon as the algorithm decides which products go in the Amazon Buy Box, you can improve your chances of success by offering the right pricing.
It’s more meaningful for sellers as they’ve got greater challengers in the same product listing.
It is different for sellers who are private-label because they are almost assured to win the Amazon Buy Box anyhow, but it is still significant for them as well as can assist to make their items more competitive and help you earn more.
Take Benefit of Sales
On Amazon, there are many seasonal occasions such as Christmas, or special events such as festivals, as well as sales events such as Black Friday, Amazon Prime Day, etc. where you can easily boost sales greatly.
Repricing appropriately makes your items stand out to take benefit of raised buyer buying activity. Then, you can reprice your items higher again soon after the sales to recover all the discounts you gave.
Match Competitors On Amazon
Repricing usually comes down to uncomplicated supply and need. As soon as sellers start marketing the same item, you have further competition as well as you may have to decrease your prices and make your items more competitive.
In case competitors decrease prices, you must understand what they are doing as well as take proper action ASAP, whatever that action might be.
Clear Out Stock
In case your product is stocking up but soon going to reach the expiration dates, then you will have to get rid of the items as soon as possible
Having the right repricing plan can be an effortless way to easily get rid of such products quicker.
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Factors to Keep In Mind When Repricing Your Products
Here are a few things you need to keep an eye on while repricing your inventory on Amazon.
Your Profit Margin and Capital
You shouldn’t sell at a loss unless you’re still a beginner as a new seller and/or are just releasing a new product. You aren’t here merely to increase your product sales. You’re here to make money.
Know Your Competitors’ Prices To Reprice Your Products Often
How much are the identical products being sold for by your rivals, and how frequently do they modify their prices? Particularly if you don’t own the Buy Box, take them into account. But after you do, up the price. The history of an item’s pricing can be viewed using a variety of tools.
Age of Your Product
Are your products going to expire soon? It is high time to take proper action by reducing the prices of the products.
Because FBA sellers are automatically qualified for Prime, they have an advantage over FBM rivals in terms of metrics. When establishing your repricing guidelines, you might omit them.
Seasonality of Your Products
Are the holidays ending soon? Do whatever you can to get rid of the Christmas products by repricing and lowering the price.
Types of Amazon Repricing Procedures
There are 3 main Amazon repricing procedures you can utilize for your products on Amazon. Let’s know how the methods work.
1. Rule-Based Amazon Repricing Method
In this method, you can set your rules to notify your repricer exactly what to do if a specific condition comes up. You are primarily setting up an if-then statement, mostly dependent on the prices of your competitors’ products.
- You’ll always have the best competitive price for your products
- Highly conditional on competitors’ product prices
- You may suffer loss with this method.
- You always have to be up-to-date regarding marketing trends, which is very time-consuming.
- Requires constant monitoring
2. Manual Repricing Method
In case you are just a beginner on Amazon as well as you have just a few items to handle, the manual repricing method may be sufficient for you.
Here is how you can reprice your products on Amazon:
- Log in to the Seller Central account.
- Hover over Inventory as well as click on the “Manage Inventory” option.
- Click on the “Active” option so you will just have to handle products that you’ve got in stock as well as whose product listings are live.
You can check the product’s current lowest price. The checkmark in green will show up if your price is the lowest. If you don’t currently have the price that is the cheapest, just edit your current prices or select “Match Low Price” to create your own.
Manual repricing is acceptable when you first start, however, as you can see, it is not a long-term solution for repricing, particularly when you add additional products.
- Good for beginner Amazon sellers and also for those sellers who are selling only a few items
- Not for very competitive products
3. Algorithmic Repricing Method
This technique makes use of machine learning and takes much more into account when repricing than just your competitors’ prices.
It takes into account your market trends, seller metrics, and also other factors so you can quickly increase your price when the opportunity arises. The majority of repricing systems are not free, but this one is by far among the most effective.
- Maximizes your profitability
- Does not need you to know and explore the trends personally
- Considers more aspects other than just competitors’ prices
- You will have to pay a certain amount for the tool
Keep in mind that the right Amazon repricing software will keep your products competitive as well as profitable. So, choose a tool today to flourish in the Amazon business!