Overview of Amazon Repricing Strategies
Successful Amazon sellers tend to run efficient operations. When it comes to using Amazon seller tools, using the best products available on the market is highly recommended. This is especially true if you are planning to utilize an Amazon repricer to implement a successful Amazon automated repricing strategy.
Seller Snap helps Amazon sellers establish a consistent and reliable Amazon automated repricing strategy. What makes Seller Snap unique from other third-party Amazon repricing tools is the fact that it is one of the few self-learning repricers and it’s inspired by the Game Theory principles.
Based on Game Theory tactics, Seller Snap is capable of assessing marketplace situations and competitor behavior in order to deliver an optimal strategy for each listing and specific market scenario. However, despite having an automated default function called the AI repricer, Seller Snap also offers avenues for Amazon sellers to implement specific rule-based repricing strategies to use as an alternative to the default AI algorithmic repricer setting.
Seller Snap’s default repricing method is the AI Repricer seen in the image below. This particular setting is widely used by Seller Snap customers who want to free themselves from constant checking and manual repricing. This automated repricing strategy has been proven effective in helping Amazon sellers capture their entitled share of the Amazon Buy Box at the highest possible price while avoiding price wars.
The default AI repricer is capable of scanning the competitive environment. Seller Snap gathers information based on competitor’s behavior and provides an automatic repricing strategy specific for each situation.
Win Buybox Repricing Method
As with the AI repricing method, the Win Buybox repricing setting is also popular. When your chosen listing is set to Win Buybox, Amazon sellers may select their desired Amazon Buy Box share, the maximum of which is 95%.
This particular method follows a simple yet aggressive strategy of repricing Amazon items. Although not as sophisticated as the AI repricer, the Win BuyBox method shares a similar feature with the basic rule-based repricer in its function to decrease the price of an item to win the Amazon Buy Box.
That is why this type of method is highly recommended for Amazon sellers who don’t have any problem in dropping the price to the very minimum level.
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What is unique with this repricing setting is that it undertakes steps to optimize the winning price. Thus ensuring that the Amazon Buy Box price is still captured at a high price, in relation to its competition.
This is best used when you want to liquidate inventory, or even as a more competitive default repricing method.
Fixed Price Method
This is among the simplest type of alternative setting to that of the default AI repricer setting. As its name would suggest, you will be setting a fixed price for a particular item, taking into consideration the listed price and shipping price. The amount of the landed price, which is the listed price + shipping price, will not be set by an algorithm, but rather by the Amazon seller.
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This method also works well for liquidating inventory.
Follow Related ASIN
ASIN stands for Amazon Standard Identification Number. It is a form of ID system that uses 10-alphanumeric characters for identification purposes. When you choose this type of repricer setting, the software will check the Amazon Buy Box of the related ASIN and adjust the product price of your Amazon listing according to your specified rules.
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This type of repricing method is best used in instances where you are the only seller obtaining 100% of the Amazon Buy Box. This usually happens when you are selling private items or white label products.
To apply this type of repricing setting, you must specify the relevant ASIN you want to follow in order to make pricing decisions on your Amazon listing. You may also CLICK HERE for some ideas of white label products for your Amazon listing.
More Rule-Based Repricing Methods
What makes Seller Snap interesting and reliable is the opportunity it offers to Amazon sellers when it comes to Amazon repricing strategies. Although widely regarded as a top Amazon automated repricing platform, Seller Snap provides an avenue for sellers to apply some rule-based repricing methods if need be.
Apart from the aforementioned Win Buybox strategy, which may be considered as a hybrid rule-based repricing method, other rule-based repricing options are as follows:
This type of rule-based method comprises various approaches. This repricing setting will allow Amazon sellers to match, undercut, and even go beyond specific prices laid down in certain categories. When using this kind of repricing approach, users are given the opportunity to match, undercut or go beyond the lowest or highest FBA or FBM and Buy Box price. Similarly, you may also use this setting to match the price set by the lowest competitor.
- Follow Competitor
Another rule-based method Amazon sellers may use in lieu of the AI repricing function of Seller Snap is the Follow Competitor. As the name of this setting would suggest, you will be following a certain competitor, including Amazon itself, and set a specific amount or percentage to compete by.
If you are an Amazon seller with Seller Fulfilled Prime (SFP) listings, using this repricing method can be really helpful to your Amazon business. With this type of rule-based strategy, you can set a rule to increase or decrease by a certain amount or percentage when the Buy Box winner is FBM, FBA, or Amazon.
If you are thinking of becoming a seller with SFP, here is a quick overview of Amazon’s suggested steps to qualify:
- Qualify for Seller Fulfilled Prime and complete the trial period
- Store inventory in your own warehouse
- Process your orders and buy shipping labels from approved carriers
- Pick, pack and ship your orders same day
- Seller Fulfilled Prime carriers collect and deliver orders in two days to customers
- Set to Min Price/Max Price
As its name would suggest, with this method Amazon sellers can choose to set a listing price either to the maximum or minimum level in relation to factor function. Worth noting, that as with all Seller Snap settings, the listing price will never go beyond your minimum or maximum price range.
Benefits of Automated Repricers
An Amazon repricer is a must use Amazon seller tool – it offers several benefits to the Amazon industry and its consumers. Here are some of the reasons why using a repricer is highly beneficial.
It Removes User Emotion
Since the eCommerce industry is competitive, it cannot be helped for some Amazon sellers to be affected emotionally when things don’t go to plan. Once emotions, such as anger and fear, get the best of an Amazon seller, judgment becomes clouded.
Most of the emotions heat up when a seller notices another seller undercutting item price. As a result of anger or impatience, Amazon sellers tend to lower their price to a point where the profit margin is affected.
In view of such a scenario, an Amazon repricer would be very helpful in automating the repricing process for sellers so as not to be stifled by their emotions.
Avoid Human Error
Some sellers make use of manual repricing to save money. However, contrary to the intention of saving money, sellers experience income loss due to mistakes in manually inputting listing prices or even late updates of product prices.
To avoid human errors caused by manual repricing, sellers should choose a repricer that can provide both rule-based and algorithmic-based repricing functionalities. This will ensure that costly pricing mistakes will be avoided.
Deliver Marketplace Consistency
Amazon sellers using manual repricers cannot always monitor all the changes in the marketplace, nor react accordingly and in a timely manner. That is why it is highly advantageous to use an automatic Amazon repricer to bring consistency to the business, especially in the context of pricing.
With advanced repricers offering multi-channel pricing features, sellers can now easily and automatically replicate pricing rules of a specific marketplace to be used for other Amazon marketplaces.
Improved Amazon Buy Box Winning Rate
The algorithmic or automatic Amazon repricers are known not just for their efficiency, but also for their effectiveness. As a testament to its effectiveness, a study revealed that sellers who use algorithmic repricers perform better than those who overlook such technology.
Based on the study conducted by Northeastern’s Christo Wilson, assistant professor in the College of Computer and Information Science, it was revealed that “Amazon is much more likely to feature sellers in the buy box who use an automated practice called algorithmic pricing…”
Another reason for using a third-party Amazon repricer is to have a better view and understanding of vital data and insights. Top Amazon repricers, like Seller Snap, provide not just repricing but also seller analytics.
With the help of the data curated and presented to sellers, it would be much easier to make reasoned decisions for the improvement of not only your repricing strategy, but also for your Amazon business in general.
Other Non-Pricing Factors to Consider
One of the main reasons why Amazon sellers make use of Amazon repricers is to get ahead of the competition and compete for the Amazon Buy Box. However, you should understand that in winning the Buy Box or appearing in organic searches, there are also other factors to consider apart from repricing. This may include but not limited to effective Amazon listing, proper use of Amazon SEO, consistent positive feedback from consumers or Amazon shoppers, and more.