Repricing - Undeniable Game Changer
developer | June 24, 2021
Interested in how Amazon Repricer works?
Understanding your competitors is the first step towards success. Being an Amazon seller, staying ahead of the game is tough, but Repricing software has smoothened this task, which stay atop with continuous price
Other competitors selling similar products leads to head-on competition, thus product visibility and pricing plays an important role in driving profitability sales.
Considering a hypothetical situation, it becomes quite tedious, dull and monotonous to constantly manually monitor the price of your competitors.
=> To consumers, e-com sites and its activities seem to be static and unmoving.
=> But in actuality prices are in constant state of flux.
There is every day, every hour and every minute changes. Thus, software is required so to tame it.
Millions and trillions of product price changes every day, to be more specific every ten minutes. Amazon listing price changes, so sellers keep their prices competitive and increase profits.
“SUBTLE PRICING TWEAKS CAN CAUSE A SALES SPIKE”
“CHANGE IS ALWAYS EASY TO PROPOSE, TOUGH TO IMPLEMENT AND ESPECIALLY HARD TO SUSTAIN”
How Amazon Repricing Works?
Repricing is thus introduced to manage this impossible workload. Below mentioned is a quick run through of repricing software:
How repricing fits with overall selling process?
– A repricing software allows different sellers of Amazon to compare and adjust their price as per their competitors automatically.
– After setting up of repricing software, listings automatically populate into software via data provided by Amazon Subscriptions.
– Repricing in the next step looks at your product and analyzes offers from all sellers to determine a competitor.
– Users are furthermore given options to narrow their competition by competing with-
- Specific seller
- Seller that are buying “buy box” (special criteria set up by Amazon) eligible
- Competitors with seller rating above specified and
- Seller with particular and specific metrics
Repricer software also receives updates from Amazon when competition changes and thus will react by repricing an item, accordingly as per settings of software.
Change in pricing is always done with respect to minimum price fed earlier to ensure, items are never sold below the threshold.
Voluntarily, a maximum price can also be set to ensure product range never go beyond MSRP (Manufacturer’s suggested retail price).=> Amazon has its own legal policy of penalizing users who charge excessively.
7 Steps to automated repricing-
1. Price changes on amazon- Repricing begins when one of the top 20 sellers of item with same condition (new, used product etc.) changes any of the following
- Active price
- Handling price
- Shipping price
- Offer condition
- Offer deleted
2. Amazon sends message to Repricer – If a change occurs in any item (within sellers of Amazon), Amazon will
send a message with price, seller information, dispatch details to all 20 sellers.
3. Data is processed and price to be calculated – Repricer express will analyze the 20-seller data and pricing information. It will calculate a new price.
4. Safety checks are performed – Repricer express thus performs a series of checks on new price to ensure, its within your minimum and maximum values (floor and ceiling price).
5. New price is uploaded to Amazon – When new price is checked and verified, Repricer uploads it on Amazon
for processing and adding to its market place.
6. Amazon’s pricing error system
=> When new price is received from Repricer, it is placed in a queue for processing by Amazon’s pricing system.
=> If you haven’t set minimum and maximum value and if it falls outside the range, products could be deactivated and tagged as having pricing error.
=> Amazon gives notification through email if listing have been deactivated.
=> Thus, advisable to set minimum and maximum value on amazon to avoid deactivation.
7. New price is live – When price is processed and checked against minimum and maximum you have set, it is then listed as your current price.
8. Repeat process within 24/7 – This repricing will be repeated continuously any time 24/7, thus top 20 offers for an item changes on Amazon.
What is the duration of price updates on Amazon?
- One of the best and principal reason to use repricing software is its capability to “see” changes from competitors, process them and react instantly.
- Software after processing data, reacts as per Amazon’s policy within 5-15 minutes.
- Once listing parameters are set, inclusive of minimum and maximum price pointers and once specific repricing strategy is decided.
- Repricing starts and software begins to work and to drive sales.
How effective is repricing?
One of the reasons behind repricing software being effective is its repetitive pattern. When sellers change the data relevant to the history, software catches the updates and adjusts, keeping the listings still competitive.
Repricing software excludes fixer price or out of stock item.
Bottom line on amazon repricing
The fundamental and most important factor of repricing is that it makes pricing easy and manageable.
Without constantly putting efforts of spying your competitors and manually changing the prices, you still stay competitive. Thus, saving you from countless hours and stress.
Once you start using software, you are in a better position to compete effectively.
Is repricing a race to bottom?
Sellers have a misconception that these repricing will lead to downfall in their price, force them to sell an item at a lowest price, but ARS on the other hand, helps setting of minimum and maximum price.
Automated Repricing takes many factors into consideration, thus processing it accurately and rapidly. Amazon chooses it repricing software that reflects the company’s uniqueness and its needs.
Walmart and eBay still hold a huge chunk of online sales, but with proper repricing, Amazon has set its platform in this rat race.
Amazon’s top goal will always be to maximize revenue.
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