It’s no secret that repricing is one of the keys to successful selling on the Amazon marketplace, but how do you get it right? Jordan Schanzer, Head of Marketing and Sales at Appeagle, explains.
The ever-growing competition that exists on Amazon warrants the need for an effective repricer. But when is a repricer truly effective? To my mind, leveraging both algorithmic and customized strategies prompts greater Buy Box attainment, more sales, and higher profit margins for sellers.
In order to capture more sales, sellers should aim for the Buy Box on all listings. However, capturing more sales means almost nothing if a decent profit margin is not retained. The two most weighted factors for Buy Box attainment on Amazon are fulfillment and price. FBA remains a seller’s best bet for acing the fulfillment portion of the equation. Likewise, a repricer is the best tool for gaining a competitive advantage when it comes to price.
One of the biggest misconceptions about repricing is that in order to get more sales, prices need to be lowered. This has perpetuated a “race to the bottom” myth. The truth is, when done correctly repricing can empower Amazon sellers to increase sales as well as profits. The key is customization. Sellers are often unaware of the power they have to control exactly which offerings they will be competing with on each individual listing.
For example, why should an FBA seller compete with a non-Featured Merchant seller on the same listing? The answer is they shouldn’t. Nor do they have to. By carefully choosing to exclude competition that would drive the price of a listing down, such as inferior fulfillment, sellers compete against the most viable offers on the same listing.
Fulfillment type is just one example of the factors that sellers should be customizing against their competition. Seller rating, feedback score, and item condition are some of the other factors sellers must review when selecting with whom they want to compete. By ensuring all competitor offers on the same listing are playing on an even field, the potential for increased profit will remain as high as possible. Taking all of these factors into consideration when creating repricing strategies can make all the difference in your bottom line.
All views and advice provided in this article are opinions of the author and not those of World First.