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.

Just like the U.S. marketplace, maintaining an adequate Buy Box share is an integral part of capturing sales. To help you track orders, you can use Amazon order ID for reference. 

Although repricing works similarly in the EU as other marketplaces, one thing that is often overlooked by many sellers is repricing feeds. A repricing feed is a mechanism by which a third-party repricer communicates with Amazon in order to make price changes. One thing to remember about pricing feeds is that third-party solutions are all held to the same standard and quota by Amazon’s MWS or Marketplace Web Services. 

When a third-party solution connects to a seller’s Seller Central account, seller ID is paired with the third-party’s developer ID. When referring to request quotas or throttling, the limits are enforced based on this seller ID/developer ID pairing. 

What is Throttling?

Amazon’s MWS documentation uses an example called, “The Leaky Bucket Algorithm.” This algorithm is based on an analogy in which a bucket that has a hole at the bottom leaks at a constant rate. Water can be added back into the bucket, but the more water that is added, the more water continues to flow out. The water will overflow as it exceeds the capacity of the bucket.

If you think about this analogy in terms of repricing feeds, the bucket represents the maximum number of requests a developer can make on behalf of a seller. If too many repricing feeds are sent during a specific period of time, the bucket overflows, and in this case, throttling occurs. Once the bucket is full, it will take time until new requests can be sent, as the rate of the leak maintains a constant. In the case of repricing feeds, the maximum rate at which feeds can be sent is 30 times per hour or once every two minutes. 

Why is this important for EU sellers?

Monitoring the repricing feeds for EU sellers is important because each marketplace has a different value to individual sellers. In my experience, the strongest marketplace is the U.K., generally followed by either Germany or France. Remember, each seller has one seller ID which covers the entirety of the EU, starting from the main five, ( U.K., France, Germany, Spain, Italy), and the newer, less developed, marketplaces such as, the Netherlands, Sweden, and  Poland. 

This means that an EU seller shares the quota and the number of feeds across all of the marketplaces they operate in. 

Logically speaking, this doesn’t make sense because not every marketplace generates the same revenue. Ultimately, the best logic would be to allocate more feeds to stronger marketplaces, such as the UK, Germany, and France, where sellers have the potential to make more money and where there’s more competition. The other marketplaces such as the Netherlands, Sweden, and Poland still need some attention, albeit significantly less since there is less competition, and those marketplaces make up significantly less revenue.

If you are selling on Amazon and repricing in the EU, reach out to your repricer and check if you can divide up those semi-scarce repricing feeds to best fit your strategy. Do what you can to get the most out of your repricer. 

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.

Default 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.

Best Time To Use:

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.

Best Time To Use:

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.

Best Time To Use:

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:

• Matching

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.

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.

When selling your own brand on Amazon you are competing with similar or even identical products but with a different ASIN. You probably need repricing for private label sellers because, there is no Buy Box to win, but you still have very strong competition. Amazon repricing for private label sellers  is an ideal solution.

We could go into detail about why Amazon repricing for private label sellers is essential, but we’d rather let that be explained by Helium 10, a very reliable source for Amazon FBA private label sellers. Check out their blog post “Private Label Repricing: a Need or a Not?”

In this article, we assume that you are already aware of the need. That’s why we focus on this new feature in our repricing application. Let’s take a garlic press as an example to show how it works.

Reprice Against Related ASINs

Even if you’re selling without competition on the Buy Box, your sales can still be undercut by similar products with another ASIN.

Let’s take the garlic press. When you type the keyword in Amazon, you get 8 brands on the first page selling the exact same product. They all sell under a different ASIN, with some minor product differences in color and price. If you sell the same type or even a slightly different garlic press, you are competing with these guys. Now you can reprice against these products as well. Choose to follow one ASIN or Multiple ASINs.

In short, if your ASIN doesn’t have competitors, you have 100% Buy Box share. With Seller Snap, you can automatically change your price compared to other ASINs.

How Does it Work?

Start with specifying a list of related ASINs your Private Label ASIN is competing with.

In the garlic press example, search Amazon for your competing brands selling a comparable press and find their ASIN.

Then, choose how you want to reprice in the Seller Snap application. You can reprice against one or multiple ASINs.

1. Follow the lowest or average Buy Box price of the related ASINs
2. Follow the lowest offer or lowest FBA offer
3. Follow the ASIN with best sales rank (its Buy Box, lowest FBA offer and so on)

And then define how and when to change your price accordingly.

If you would like to read more about private label selling on Amazon, we recommend checking out this infographic on the top 10 landmines for private label sellers.

Want to try our repricing for Amazon FBA private label sellers? Seller Snap offers a 15-day FREE trial for Game Theory repricing to all Amazon sellers. Request Your Trial here