One of the questions sellers should try to examine when venturing into Amazon is the question concerning what is an Amazon repricer. A better understanding of what is an Amazon repricer will help improve your Amazon business in no time.
An Amazon Repricer is a software tool that automatically changes the price of an item you sell on Amazon (a listing) based on one or more rules, such as always match the lowest offer on Amazon, or by applying more complicated internal logic.
So why do you need to constantly change prices on Amazon?
From the minute Amazon opened the marketplace to 3P sellers, frequent product price changes have become critical to running a successful Amazon storefront.
WHY? Because if you want to sell, you have to be in the buy box, and to get the buy box if you don’t have it, the only thing you can do in the short term is lower your price (of course in the long term you should worry about your seller rating and a bunch of other things that make you a better seller).
Why do repricing solutions work so well with Amazon?
We see far more repricers for Amazon than for any other marketplace and it’s not just because Amazon are the biggest. There are 3 main reasons for this:
- The catalog based system (ASINs), makes it easy to compare “apples to apples”. A buyer knows he is getting the exact same product from different sellers and the competition is on price and the overall buying experience any individual seller can provide.
- The extensive API that provides a lot of data and makes integration with 3P repricers and other SW solutions relatively easy and effective.
- The buy box is very effective (relatively speaking) in predicting successful sales. The success of a price change getting the buy box can immediately be seen, while seeing the effect of price changes on sales and profit takes far longer.