In this article, we will discuss some of the Amazon repricing strategies and repricing tools you can use to improve your Amazon business. 

What Is Repricing?

Before we delve deeper into the best repricing strategies for Amazon sellers, it is best to refresh our understanding of what repricing is. 

Repricing is one of the tools online sellers use to keep their price management strategy effective. Whether you are selling on Amazon, Walmart, or other online selling platforms, repricing is inevitable. 

According to the Merriam-Webster dictionary, repricing is the “changing of price.” In the context of eCommerce, repricing can be defined as the method or strategy of updating product prices in real-time by means of a repricing software or Amazon repricer. 

Repricing strategies are implemented to facilitate the necessary price adjustments to keep listing prices on a competitive level. Thus, allowing sellers to maximize the conversion rate of their online store. 

Some of the commonly utilized eCommerce repricing strategies are Manual Repricing, Rule-Based Repricing, and Automated Repricing. 

Different Repricing Strategies for Enhanced Price Management

Like any other business, your Amazon business requires careful planning, preparation, and execution of strategies. Optimizing your eCommerce business operations will require a robust price management strategy. To do so, here are some of the best repricing strategies you can incorporate into your business. 

Manual Repricing

Manual repricing is one of the common repricing strategies you can implement for your business, whether you are operating on Amazon or other eCommerce websites. This repricing strategy pertains to manually adjusting the listing price to compete with the price set by other sellers.

Despite the technological advancement and the availability of sophisticated third-party repricing software, some sellers choose to adjust their listing prices manually. 

Some Amazon sellers prefer the manual repricing strategy over other repricing strategies because they can maintain full control over price adjustments.  

Is Manual Repricing Strategy Best for Your Business? 

This repricing method is highly recommended for sellers with less competitive items on their listings. 

Manual repricing is ideal for sellers who have few direct competitors and have the time to make frequent manual price adjustments. For instance, manual repricing can benefit from low-volume Amazon sellers, handmade sellers, or sellers with limited product catalogs. 

In contrast, high-volume sellers using this repricing method will find it difficult and time-consuming to adjust listing prices constantly. Furthermore, constant manual price adjustments of multiple listings can sometimes result in incorrect listing price entries, which may result in costly pricing errors. 

Rule-Based Repricing 

Another popular repricing method is rule-based repricing. True to its name, rule-based repricing operates within predefined rules. It simply means that a rule-based repricer adjusts listing prices based on the rules set by the seller. 

Some of the common predefined pricing rules readily available on a rule-based repricer may include but are not limited to the following: 

1. Match Buy Box Price
2. Target the Lowest Price 
3. Undercut the Buy Box Price
4. Target the Lowest FBA Price 
5. Beat the Competition by a Certain Amount
6. Beat the Competition by a Certain Percentage

When a particular rule has been established and the marketplace scenario fits within pricing rule parameters, the rule-based repricer adjusts the listing price. Hence, some online sellers consider rule-based repricing an unpolished form of automated repricing. 

Amazon provides sellers with an “Automate Pricing” tool to facilitate rule-based repricing for free. Some of the rules available on the Amazon Automate Pricing tool include:

1. Competitive Featured Offer: This repricing rule allows you to set your listing price to be below, match, or above the Buy Box offer. 
2. Competitive Lowest Price: Choosing this price rule will let you set the listing price to be below, match, or above the lowest price. 
3. Competitive External Price: This repricing rule means that the price of your SKU can match or be capped at the External Price. External price refers to the item’s lowest price from other retailers, which does not include prices from other Amazon sellers.
4. Based on Sales Units: This price rule means that you can decrease your listing price based on the sales volume target you select within a set time period. 

If you want to learn more about how Amazon’s version of the rule-based repricing works, you can check the video presentation below:

Is Rule-Based Repricing Strategy Best for Your Business?

The rule-based repricing method, whether used for Amazon or other eCommerce websites, is ideal for sellers who have no time to adjust their individual listing prices manually. The predefined rules readily available on the repricer makes price adjustments more convenient for sellers. 

However, Amazon sellers should also take into consideration that this repricing method operates under the assumption that when the price is lowered, sellers can win more Amazon Buy Box. In such a case, the rule-based repricer aims to undercut the competitors’ listing prices based on the set pricing rules. 

Moreover, since a purely rule-based repricing method focuses on outpricing competitors, it can be prone to price wars detrimental to your profit margin. Worth noting that price rules can sometimes become conflicting and will likewise require constant management and editing. 

Automated Repricing 

Automated repricing, sometimes known to the eCommerce industry as AI or algorithmic repricing, is a more advanced repricing method. Its fully automated repricing process distinguishes this method from manual and rule-based repricing. 

This repricing method utilizes AI repricer or algorithmic repricing software to ensure that your listing prices are properly optimized. Unlike other repricing strategies that are prone to human error and biases, the automated repricing method will take into account multiple relevant factors before making any price adjustments. 

A typical AI repricer considers marketplace price notifications, competitors’ price change and behavior, crucial seller metrics, and the overall market conditions to set the best possible prices for your listings. 

In some cases, an AI repricer can even predict behavioral changes of competitors based on the collected data from Amazon. Furthermore, its advanced technology can combine AI repricing with predefined rules and conditions to help you customize your price management strategy. 

Is Automated Repricing Strategy Best for Your Business?

High-volume sellers with highly competitive products can maximize the benefits of automated repricing. With the help of an AI repricer, sellers can avoid emotion-driven price adjustments while saving time and effort in the process. 

Using an AI repricer can help you quickly adapt to your competition and minimize the margin of error that can adversely affect your profit margin. You can obtain a competitive pricing advantage with a little effort through automated repricing. 

The fee involved is perhaps the only thing that concerns sellers the most about automated repricing. Unlike manual and rule-based repricing, which has free-to-use options from Amazon, utilizing AI repricing strategy comes at a reasonable price. 

However, the good thing about these third-party Amazon seller tools is that they allow sellers to use their products for free within a limited period. Thus, allowing sellers to create a well-informed and experienced-based purchasing decision. 

Which Repricing Method Should You Choose?

Some Amazon sellers looking for complete control over their product pricing activities will likely choose manual repricing. However, such a strategy will consume the precious time of sellers, especially when monitoring competitors’ prices and applying price changes to their listings. 

On the other hand, rule-based repricing will minimize the required time for monitoring and price change application. However, price change accuracy and profitability are sometimes sacrificed, especially when chosen price rule parameters contradict each other. 

Going beyond manual and rule-based repricing, you have the option to choose automated or AI repricing for your online business. 

The reliable computer algorithm or AI of an automated repricer can automatically set your listing prices based on all known market conditions and relevant seller metrics that help achieve your business goals. 

You can expect that with an automated or AI repricing method, you can obtain a tailored price adjustment directed towards surpassing competitors while safeguarding your profit margin. 

However, despite all of the facts mentioned concerning repricing strategies, choosing a repricing method for your business largely depends on the size of your business operation, your business goal, your budget, and your desire for growth and expansion.

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.

Whether you are switching your repricing solution or are contemplating purchasing a repricing platform for the first time for your Amazon store, it can be a tough and difficult choice. What is important for a repricing solution on Amazon is that it will help you stay competitive, boost your margins and profits and, of course win a fair share of the Buy Box.

It is crucial though to remember that winning the Buy Box is more than just having a low price. Other factors that weigh in are your competitive landscape, inventory levels, reviews status, customer service, shipping costs and more.

Repricing is not a silver bullet for sellers on Amazon, but nothing is. It’s a type of automation that should be assessed and measured and adopted fully if it provides a positive return on investment.

Even so, with the fierce competition to win the Buy Box, a repricing solution is an essential part of an Amazon sellers’ eCommerce strategy.

Things to Consider When Choosing a Repricing Platform

With many factors to consider on how to choose a repricing platform, we broke it down for you in some easy steps.

Trial Period

Almost all companies that offer a repricing solution provide a trial period. A trial period is crucial when you are about to invest in your company with a repricing solution, as you will want to make sure that you will get your investment back in sales profit through repricing and Buy Box share. Give yourself time to really delve deep into the statistics and actionable insights during your trial period. Don’t just turn it on and forget about it for two weeks.

Price

A repricing solution can seem a high expense for your business but remember that a repricer is only expensive if it does not make you more money. Be realistic. How much money are you currently generating? How much can you afford to spend on third-party software solutions? If you plan on scaling your business, it is okay to take that into account as well.

SKU’s for Trial Period

Repricing is necessary if you are on a competitive listing, especially as so many of your competitors will be using a repricing solution. When choosing SKU’s for your trial period:

• Make sure you choose items with competition and items that you have in stock.
• Mimic your total inventory as much as possible.
• Follow your business model. For example, if your business model is split into FBA and FBM listings 60/40, make sure you follow that ratio with the sample you put into the trial.

If you would like more tips on how to choose a repricer download our eBook How to Choose a Repricer.

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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

If you’ve looked at any repricing software lately, you probably noticed they offer some form of automatic “smart” repricing that will guarantee you always win the Amazon Buy Box at the highest possible price.

What’s wrong with this claim?

True, Amazon provides each professional seller with the data necessary to know whether they are currently in the Buy Box. It’s also easy enough to calculate how much you need to decrease your price to win the Buy Box (if you’re not currently in it).

Problem is, for any competitive product sold on Amazon there are at least a few other strong sellers who are using some sort of repricing software and also want their chunk of the Buy Box.

This scenario can very quickly trigger a “race to the bottom”, killing profit margin for all, and leaving you with the same Buy Box share you had when you got started but at the lowest price you are willing to sell for.

Using such a rule to reprice all your products is the reason behind all the buy box price wars everyone is complaining about. Hence, checking buy box price is crucial.

So what can you do?

Unless you are certain you can beat your competition on price and are going for maximum sales velocity, you should instead accept the fact that you need to share the Buy Box with other competitors and focus on getting that Buy Box share at a higher average price.

In most cases, to avoid buy box price wars you must accept that you must sometimes lose the Buy Box.

You can achieve this by winning the Buy Box when your competitors are priced relatively high and willing to lose the Buy Box when market prices are low (remember your competitors are using repricers and constantly updating their price as well).
Would you like to find out about more unconventional, and automated, ways to win the Buy Box? Reach out to us to find out more.