The eCommerce industry is extremely competitive, especially Amazon. With the growing population of Amazon sellers, optimizing your Amazon store is a distinguishing competitive advantage. Increasing sales and profits is a priority for Amazon sellers, which is why they advocate the use of Amazon repricers.
Why Repricing Speed Matters in Winning the Buy Box
Assuming that you have already sufficed Amazon Buy Box eligibility requirements, repricing is one of the most important factors to consider afterwards. As an Amazon seller, your ability to quickly reprice your Amazon products can help generate more sales through winning the Amazon Buy Box.
For every Amazon seller, winning their share of the Buy Box is essential since the majority of the sales on the Amazon marketplace come from Buy Box offers. Hence, it is crucial for your product to be listed in the Buy Box.
However, winning the Buy Box through traditional repricing methods can be quite demanding and time-consuming, especially if you have numerous products in your Amazon inventory. For that matter, top Amazon sellers utilize AI repricers to maximize their repricing strategy and increase their chances of winning the Amazon Buy Box.
What Are the Main Repricer Categories?
A repricer can be categorized into two categories, namely, manual and automated repricers. Manual repricers as its name would suggest require manual inputting of the product price.
With manual repricing, if you have a high volume of inventory, you will have to devote substantial time inputting product prices and manually adjusting them daily if you wish to win the Buy Box. Hence, making such a process time consuming and repetitive.
On the other hand, automated repricers automatically adjust the Amazon listing price often in real-time and in response to price changes of competitors. However, within the automated repricer category, there are rule-based repricers and AI repricers.
In terms of winning the Buy Box, rule-based repricers will assist you in winning the Buy Box, but they often cause aggressive price wars, thereby damaging profits. AI repricers on the other hand are much more strategic, assessing the specific scenario and adjusting price based on competitor behavior and predicted competitor price changes.
However, when comparing repricers in terms of speed, there are no significant differences. All third-party repricing solutions are held to the same quota by Amazon. Since Amazon only allows 30 price feeds per hour, ideally, repricers shouldn’t reprice faster than every 2 minutes.
What Is Amazon AI Repricing?
An AI repricer is based on an advanced algorithm that uses artificial intelligence to automatically change product prices based on specific factors. In other repricing discussions, AI repricers are sometimes called automatic repricers or algorithmic repricers.
Amazon sellers consistently aim and compete for the Amazon Buy Box, which is of course, prime real estate. This can often result in Amazon price wars since sellers keep undercutting one another in order to dominate the Buy Box.
Such a strategy has been proven risky and less productive. While sellers quickly drop their price to compete with other sellers’ price point, the Buy Box price will likewise decline to a point where profit margin loss is experienced by the lowest bidder despite being awarded the Buy Box.
Without the most advanced algorithmic software, data-driven Amazon marketplace insight, and operational expert assistance of an Amazon AI repricer, sellers will have to contend with low sales and low profit margin.
AI repricers analyze thousands of price decisions every minute to detect the behavior of your competitors and automatically select the optimal strategy to outsmart your competition. This results in gaining Buy Box share at the highest possible price.
Reasons to Consider an AI Repricer
As previously mentioned, an AI repricer is one of the must-have Amazon seller tools to help increase your chances of winning the Amazon Buy Box. In today’s eCommerce landscape, aggressive pricing strategies do not always yield success.
To be successful in the Amazon marketplace, Amazon sellers should learn not to rely on undercutting prices in their attempt to garner a spot in the Buy Box. The same thing applies to constant and endless manual updates to the Amazon product price.
The most important contribution of an AI repricer to your Amazon business is the competitive advantage it brings in terms of strategic and automated repricing. Being competitive with your price is critical if you wish to succeed in the online selling business.
In one of the surveys reported by Statista, it was found out that “70 percent of respondents stated that competitive pricing was the most important factor that influenced them to shop with a particular online retailer.”
With an AI repricer forming part of your Amazon seller tools arsenal, you can easily and quickly stay on top of competition without having to constantly monitor competitors’ pricing and marketplace situations.
It is the speed and accuracy of an AI repricer that gives Amazon sellers a competitive advantage over competitors.
What to Look for in an AI Repricer
Easy To Use: When it comes to an AI repricer, you do not want to spend a lot of time simply learning the user-interface of the repricer. Choose a repricer that is very easy to use.
Efficient Connectivity: Other criteria to check would be the seamless connectivity of the repricer. Repricers should easily connect with Amazon application programming interfaces (API) to extract data and send data as well. You should avoid repricers that are known for their poor AWS API connectivity.
Reliable: It is imperative that when using an AI repricer, it should not be prone to system errors.
Flexible: Another factor to check when looking for a repricer is its flexibility. A repricer should be able to adjust its settings depending on the marketplace situation and user preference.
Upgrade Your Amazon Repricer Today
One of the highly tested brands in the Amazon repricing industry is Seller Snap.
Seller Snap is capable of automatically applying the best pricing strategy for any given situation since its algorithm is based on the Game-Theory principle. Thus, giving you more edge in winning the Amazon Buy Box at the highest possible price.
We offer a reliable, fast & efficient, easy to use, and flexible AI repricer. As a testament to its flexibility, sellers can effortlessly transition from AI setting to a rule-based setting within seconds.
If you wish to try Game Theory Repricing with Seller Snap, sign up for a free 15-day trial.