What Is Repricing and Repricing Software? 

Repricing on Amazon pertains to changing the listing prices on the Amazon marketplace. Third-party merchants rely on a repricing strategy to offer the best product prices to Amazon shoppers. 

With the increased competition in the Amazon marketplace and the market’s exponential growth, Amazon sellers turn to automated repricing to quickly adjust the prices of their product listings, regardless of the quantity of the listings. 

To help Amazon FBA or FBM sellers facilitate automated repricing strategy, sellers use automated repricing software such as AI repricers. 

Quick Overview of Repricing Software – AI Repricer

In general, repricing software allows Amazon sellers to quickly perform price adjustments to keep up with market competition. With the help of repricing software, an AI repricer in particular, Amazon sellers can automatically change the price of their listings. 

Depending on the market conditions, an AI repricer can help sellers raise or lower their listing prices to beat their competitors. However, apart from simply adjusting listing prices, a sophisticated AI repricer like Seller Snap offers more than just price change. 

An advanced AI repricer can detect the behaviors of multiple competitors and tailor price adjustments to outsmart them. It can also provide an overview of the seller’s performance through analytics that helps sellers make  well-informed decisions. 

Why Repricing Matters?    

An automated repricing method matters for sellers because it can help them stay competitive in a marketplace where about 2.5 million product price changes happen daily. An AI repricer can help sellers automate the repricing process, allowing improved business efficiency. 

How Does an AI Repricer Benefit Amazon Sellers?

To better understand why repricing matters and why an AI repricer is a must for high-volume Amazon sellers, here below are some of the known benefits of using AI repricing software to facilitate automated repricing methods. 

Prevents Emotion-Driven Decisions 

Emotional decision-making affects not just the outcome of the decision you will be making as a seller but also the speed at which you make such a decision. Hence, it is crucial always to keep your emotions at bay when handling your Amazon business, especially when repricing your listings.

When you are angry about a particular market situation, you tend to be impatient and rashly decide on things. On the other hand, when you are too excited about a particular aspect of your business, you might make quick decisions without considering the potential outcome. Moreover, if you are afraid, you might end up not deciding at all. 

To avoid emotional decision-making when pricing your Amazon products, you can always turn to an AI repricer. This Amazon seller tool can automate the pricing process based on market conditions without being bothered by fear, anxiety, or too much excitement. Thus, keeping the pricing process as objective as possible.

Decreased Errors 

The best thing about an AI repricer is that it will evaluate essential factors for repricing, including competitor’s behavior, price changes, notifications, and overall market conditions, before adjusting the listing price. Thus, minimizing the margin of error. 

Apart from that, using an AI repricer also decreases human errors that are commonly experienced when you use a manual repricer. Unlike a manual repricer, there is no need for constant manual updating of prices, which can sometimes lead to confusion and incorrect encoding of the listing price. 

Real-Time Reaction

Besides decreasing human errors when adjusting listing prices, an AI repricer also improves your repricing speed and reaction time. In contrast to manual repricers, automated repricing software uses real-time data to make instantaneous repricing decisions. Thus, keeping your Amazon business highly competitive. 

More Buy Box, More Sales 

Whether you are enrolled in Amazon FBA or an FBM program, winning the Amazon Buy Box is at the top of your list of priorities. The Amazon Buy Box is responsible for about 90% of total sales in the Amazon marketplace, which is why sellers compete for their fair share of the Buy Box. 

If you are still new to Amazon, the Amazon Buy Box is a primary real estate on the product detail page where the “Add to Cart” and “Buy Now” buttons are located. The Amazon algorithm determines whose listings will be featured on the Buy Box.

One of the factors evaluated by the Amazon algorithm when awarding the Buy Box is the price. In order to optimize the price point of your listings to a competitive level, you can use AI repricing software to automate the process and increase the likelihood of winning the coveted Buy Box on Amazon. 

Opportunity for Software Integration

A more sophisticated AI repricer will allow for software integration. Through seamless software integrations, Amazon sellers can streamline their business processes. A software integration will also enable sellers to perform quick adjustments on a single platform instead of changing from one platform to another.  

Simply put, Having an option for software integration can provide Amazon sellers with a competitive advantage and better workflow efficiency. 

Saves Time and Money

One of the practical benefits of using repricing software is the time and money you can save when incorporating it into your Amazon business. Concerning the time aspect of the business, AI repricers can help you automate the repricing process. It gives you more time to attend to other aspects of the business, such as advertising, customer support, or inventory management. 

Furthermore, using this Amazon seller tool can also help you save money as it helps minimize your need for additional human resources and potential overhead expenses that may come with hiring additional staff for your Amazon business. 

Maximizing the Business Potential

With a highly competitive marketplace like Amazon, it is advantageous for sellers to utilize available resources to maximize their business potential. With its known benefits mentioned above, it is not surprising that top Amazon sellers use an AI repricer to enhance their Amazon business significantly. 

To further maximize your earning potential and customer reach, you can also complement a repricing software with other valuable Amazon seller tools such as Amazon advertising tools, feedback tools, and inventory management software.

Many industries are beginning to wake up to its powers, and the eCommerce sector is no exception. From improving your customer relationship management to working out how best to price your products, AI could help you revolutionize your online business.

What is AI?

AI involves using algorithms and machine learning to enhance and automate tasks that humans may find time-consuming, complicated, or tedious. Once an algorithm has been programmed to perform a task, it can learn on the job and improve its performance and efficiency.

Over the past few years, AI has become increasingly common in the eCommerce industry. Online retailers like Amazon have used it to enhance many aspects of their operations, from introducing customer-service chatbots to fully automating warehouses. According to one study, 35% of Amazon’s sales now come from its AI-powered recommendation software.

The potential for AI to be used in eCommerce is so promising that another recent study indicated that 85% of online customer interactions could now be taken care of without a single human having to get involved. 

It seems likely, then, that in the not-so-distant future, your company’s AI sales could be greater than those of your human sales team. If you’re still not convinced, below are just a few of the ways AI is causing a revolution in the eCommerce industry.

How AI is revolutionizing eCommerce

The efficiency and power of AI algorithms have grown dramatically over the last few years, and this trend is reflected in the growth of the AI software market. 

As a result, AI has infiltrated almost every area of the eCommerce industry, from customer service to software development. 

Customer service

Chances are that if you’ve ever bought anything online and had to chase it up, return it, or request a refund, you’ve already encountered AI customer service. These systems are becoming so sophisticated you may not even have realized.

The most common way to combine AI and customer service is the automated chatbot. These are algorithms designed to respond to customer inquiries and help find appropriate solutions. They’re available to customers 24/7 and can provide almost-instant responses to a range of queries, such as “when will my order be delivered?” and “how can I get a refund?”.

Chatbots can help businesses cut costs and automate some of the more repetitive and tedious customer service tasks. That being said, the abilities of many chatbots are still quite limited. Even the most sophisticated algorithms may not be able to deal with the often chaotic and unpredictable nature of a disgruntled customer.

So, can AI help with more difficult customer service encounters? You bet it can! Natural language processing (NLP) is a technique that allows AI to support and augment customer service departments without replacing the human workforce. NLP can transcribe phone calls in real-time and keep an eye out for keywords such as “frustrating”, “cancel”, or “disappointed” to alert managers to complaints that might need their direct attention.

In this way, using AI to supplement your customer service team, rather than replace it entirely, may be the best way forward for your online business. But whatever route you take, you can be sure AI is likely to play a big role in the future.

Data management

In the world of eCommerce, data management is paramount. Unfortunately, it can be a complicated, time-consuming, and error-prone task when performed by humans. Using AI algorithms to manage data collection and analysis can help online businesses run much more efficiently.

Collecting and analyzing data on customer behavior allows eCommerce retailers to gain a better understanding of their customers. Knowing when, where, how, and why they shop helps target them more effectively and increases the likelihood of them buying products from your online store.

Using AI to manage this can help businesses analyze much larger pools of data and avoid errors that might be made by humans. It’s algorithms like these that have allowed eCommerce giants like Amazon to become as successful as they are. For example, Amazon uses AI to track its customers’ behavior and then recommends products based on this, which they often buy.

AI data algorithms can also help target advertising and market more effectively. By tracking which adverts your customers tend to click on and understanding the type of branding they trust, they can create personalized advertising for each individual. This could revolutionize the marketing strategies for SaaS companies, online retailers, and many others in the eCommerce industry.

Predictive AI algorithms like this are only likely to become more prevalent as an increasing number of businesses utilize 5G. Its impressive speed and power will allow data processing to be performed on a much larger scale and enable companies to employ ever more complex algorithms.

Repricing

As an eCommerce retailer, selling your products at the right price can make all the difference when it comes to outdoing competitors. As the online sphere continues to grow, this is only going to get more intense. It’s therefore vital you sell your products at a competitive price, but with prices constantly in flux, staying on top of this can be difficult.

Luckily, AI repricing systems can help you stay ahead of rivals and ensure you’re consistently competitive. By monitoring the online marketplace, these algorithms will keep tabs on your competitors and adjust your prices automatically.

This can save a lot of time and effort, as well as ensure you’re always maximizing profits. Using an AI repricing algorithm also makes sure you avoid pricing glitches that can be devastating to sales targets. 

A pricing glitch occurs when the price of a product is set too low either because of an error in calculation or manual inputting. AI repricing systems ensure these glitches become a thing of the past.  

Internal communications

In the eCommerce industry, communicating with your team is vital to keep operations running smoothly. This is particularly true in the aftermath of the COVID-19 pandemic when many traditional communication channels were cut off. 

However, with the rise of countless remote communication platforms, apps, and gadgets, internal communications can often become convoluted, glitchy, and frustrating.

Thankfully, this is another area in which AI is revolutionizing the industry, and business communication software can be enhanced through AI algorithms. This software can, for example, transcribe phone calls and video conferences, allowing you to keep a record of important internal communications like meetings and reviews.

AI-assisted internal communications can thus make your team more efficient and help your business move forward in the right direction.

Software development

As an online company, ensuring the software you use is working efficiently and smoothly is crucial. After all, the success of your websites, ordering systems, communications, and just about every other aspect of your business relies on having appropriate and dependable software.

Unfortunately, designing and maintaining these websites and systems can be a tedious and time-consuming job. Encouragingly, though, the prevalence of AI software development kits (SDKs) is likely to increase dramatically over the coming years. These automated tools will allow developers to focus on more complex tasks while they take on routine bug fixes and mundane coding reviews.

It’s even possible to get AI to design your whole website, a task that usually requires a lot of time, effort, and planning to achieve. For example, Wix ADI uses AI to create unique websites in a matter of minutes, which often seem to outperform websites made by humans.

AI could even influence the domains companies use for their websites. As the prevalence of artificial intelligence spreads throughout the eCommerce industry, more companies are starting to use AI domains. 

If you’re looking for an AI domain definition, “.ai” is the country code for websites based on the Caribbean island of Anguilla. Recently, however, technology and IT companies have started to buy AI domain names for their websites. 

As well as signifying to customers you’re in the tech industry, .ai domains can be great for your company’s SEO, offer value for money, and, as this is a relatively new trend, there’s a wide variety of names still available.

The revolution will be automated

The extensive list of uses for AI in the eCommerce industry goes on and on. In addition to those mentioned above, it can also help businesses automate their inventory management, tackle fake reviews, and weed out counterfeit products.  

Implementing AI algorithms into your strategies is likely to save you time, cut costs, improve efficiency, and relieve you of countless mundane and tedious tasks. Having said that, some more nuanced jobs, such as customer service and relationship management, may still benefit from a human touch.

To ensure your eCommerce business remains competitive, it’s important to understand how AI is changing things in your industry. Recognizing the potential of AI will allow you to make optimal decisions on how best to integrate it into your operations. 

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About the Author:

Jenna Bunnell is the Senior Manager for Content Marketing at Dialpad, an AI-incorporated cloud-hosted unified communications system that provides valuable call details for business owners and sales representatives. She is driven and passionate about communicating a brand’s design sensibility and visualizing how content can be presented in creative and comprehensive ways. Jenna has written for such domains as Shift4Shop and FlippingBook. Check out her LinkedIn profile.