Pricing a product is not an easy task. You have to consider the market factors, i.e., a demand for the product, competitors' prices, recent trends, fashion, and much more. Still, the price set is not permanently fixed. The sellers keep fluctuating about the same, considering the alteration in the market. Similarly, in this era of the internet, most sellers are registered on Amazon to get the attention of a vast crowd and enhance their sales and boost revenue. People often formulate diverse strategies, such as content creation, search engine optimization tools, and other offers to gain a large audience. However, these strategies are insufficient as you might need Amazon store repricing tools at some point.
What Is Amazon Store Repricing, and How Does It Affect Your E-commerce Platform?
It might appear tricky to you if you have never heard about the Amazon product repricing strategies. However, repricing products in the mortar world is relatively easy. For instance, if you are selling a product at a specific price, what if the wholesale price of the same increases suddenly? Or do you experience an instant diminished supply whereas raised demand?
In the above-listed cases, putting up the prices of the products becomes essential. At the same time, in case of a decrease in wholesale rates, demand automatically decreases, or your competitors suddenly reduce the price of their commodity to boost the sale. In any of these circumstances, you might need to lower your product's costs to survive the competitive market. Similar to the mortar world, the sellers change the price of their goods to stay competitive in the online markets.
Though Amazon has reduced the access barrier to trade online by enabling the entrance of third parties to a vast audience, the online store has now lured around 2 million third-party sellers. It clarifies that competition is very high, and the price strategies are the chief factor determining the profit and sales of the store. All in all, on a famous marketplace such as Amazon, a seller can't ignore the repricing factor, especially if they desire to stay in the competition.
Benefits of Repricing on Amazon
Repricing products on Amazon benefits sellers in many ways. Most Amazon sellers change their product prices several times a day. Moreover, Amazon too modifies the prices of its private label products frequently. Here are three main benefits sellers can avail themselves by repricing their products:
1. Gaining a Bigger Share of Buy Box
Product pricing is one of the significant factors Amazon's A10 algorithm considers when awarding buy boxes. If a seller prices the product rightly along with other seller metrics, the chances of winning the buy box increase. While price matters, it is not the only factor that decides who wins the buy box. However, pricing matters more for arbitrage sellers than private-label sellers, as arbitrage sellers always compete with other sellers. While private-label sellers usually get the buy box, repricing products on Amazon still matters. Repricing will help sellers keep the products competitive with similar products from different brands.
2. Clearing Out Old Products in Inventory
Clearing out the inventory becomes essential if you sell seasonal products with an expiry date. You don't want your products to expire while sitting on your list or end up left with huge stock by the end of the season. This will result in a loss of profit as products left after the end of the season may accumulate storage costs, whereas products not sold before their sell-by date will become waste. Hence, Amazon sellers can use the repricing tool to clear up the pending stock before the sell-by date or by the end of the season.
3. Offering Discounts
Product repricing strategy can be used when offering discounts to customers during special events like Christmas, Black Friday, etc. Many sellers price the products higher during these events to make up for discounts offered during such events.
How Can Amazon Repricing Software Keep Your Profits High?
Repricing has always been tiresome as you are required to manually type in the rates, make competitors' analysis, and get the latest rates over to your distributors. However, this not only raises the unwanted expenditure of your firm but is also considered a time-consuming process. But no need to worry now as a few well-known Amazon store repricing software can surely help you stay on top, save your time, and won't be an expensive investment. Here are some primary Amazon repricing tools:
Using the above-listed tools can help you set and fluctuate the Amazon product prices.
Things to Consider While Repricing Your Amazon Products
Sellers need to keep an eye on various things before repricing their products on Amazon:
Unless you are a new seller or launching a new product in the store, you should not be selling your products at a loss. You should not sell more products to win the buy box or increase sales. Instead, the main focus should be to stay in profit. Hence, your profit margin is the first thing you should consider while repricing your products on Amazon.
Competitors' Listing Prices
How are your competitors pricing the product? How often do they change the pricing of their listing? These are essential things to consider, especially when you don't have the Amazon Buy Box. However, you can consider repricing higher to gain profits after winning the buy box. You can use a good pricing tool that provides a detailed product price history.
Your Inventory's Age
Do you have products that are about to expire? Or is it the end of the season if you are selling seasonal products? If yes, it is a great time to consider lowering the prices to increase sales and sell products before time.
Your Method of Fulfillment
Are you an Amazon FBA seller? If yes, you will be eligible for Prime delivery and gain several advantages over your competitors who don't sell through FBA. When you have FBA, you can consider excluding the pricing of the competitors who don't have FBA while reprising your product.
Your Product's Buying Cycle
Products with low prices have shorter buying cycles, and sellers don't have much opportunity to reprice these products often as there is with high-priced products with a longer purchasing cycle. For example, if someone wants to buy a cellphone, the buyer will not immediately make a purchase. Instead, they will look for the prices for days or even weeks. If the product price fluctuates often, the buyer stays interested until the price falls. An increase in the product may put the buyer off.
Bottom Line on Amazon Store Re-Pricing
There are no magic strategies for Amazon store repricing. With all the experimentation and experience, you can learn the best techniques which can work for you.
If you are looking for the best tools to work with Amazon store repricing, you can reach Amazon Listing Services for your absolute needs. We can help you with the best tool required for your Amazon store repricing.