Across the globe, Amazon has nearly 10 million seller accounts, of which almost 2 million are actively selling on the Amazon marketplaces. Such a growing population of third-party merchants propels sellers to implement an effective pricing strategy to outperform the market competitors.
Pricing plays a crucial role in eCommerce, especially on Amazon. Since product pricing is essential, Amazon sellers do their best to offer shoppers the most reasonable price possible.
Sellers rely on an Amazon seller tool known as an Amazon repricer in order to achieve their goal of offering a competitive price. To better understand repricing and repricing software for Amazon, here are some important details Amazon sellers should know.
What is Repricing in General
Repricing is a term that has been incorporated into the digital landscape in consonance with the evolution of eCommerce. It pertains to the process of updating listing prices with a certain degree of automation.
In its simplest form, repricing refers to updating product prices on eCommerce sites by means of an automated technology. Such a process is facilitated in real-time with the help of repricing software.
What is Amazon Marketplace Repricing?
Simply put, repricing refers to adjusting the listing price on the Amazon marketplace. In order to offer a competitive price to Amazon shoppers, Amazon sellers change their listing prices based on various market conditions, including the competitors’ behavior.
To efficiently and effectively facilitate repricing, third-party merchants use a repricing software for their Amazon business.
What Is a Repricer and How Does It Work?
A 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 matching the lowest offer on Amazon, or by applying more complicated internal logic.
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).
How Does Repricing Help Amazon Sellers?
Updates in the eCommerce industry introduced not just marketplace improvements but also software advancements. For example, Amazon has allowed third-party developers to introduce Amazon seller tools that can assist sellers and shoppers alike.
A repricing tool is one of these softwares that drastically help Amazon sellers save time and maximize their profit. Some of the reasons why Amazon sellers should use repricing software include the following:
Increased Amazon Buy Box Win Rate
The Amazon Buy Box is a significant real estate on Amazon’s product detail page. It is where the “Add to Cart” and “Buy Now” buttons are situated. Amazon sellers compete to win the Amazon Buy Box to increase their sales conversion.
Amazon chooses compelling offers from a pool of eligible offers to win the Buy Box. One of the factors that Amazon evaluates in awarding the Buy Box is the product price.
With the help of a repricing software, Amazon sellers can offer a competitive listing price to increase their chances of winning the coveted Amazon Buy Box.
Improved Pricing Process
Repricing software, AI repricers in particular, provides efficiency in terms of price adjustments. The automated repricing process can help third-party merchants quickly change listing prices even in bulk.
With automated repricing, there is no need for Amazon sellers to spend too much time and effort adjusting individual product prices for each listing manually. High-volume Amazon sellers can definitely benefit from repricing software.
Better Search Result Ranking
Frequent Amazon shoppers will use filters when shopping online. Among these filters is the product price. Since using a repricer lets you offer a competitive price, the likelihood of becoming more visible on Amazon searches is high.
Additionally, the Amazon algorithm also considers product price when ranking listings on the Amazon search result pages. When you have a competitive price, your product will likely rank higher on the search results page.
Access to Sophisticated Data
Apart from helping sellers adjust their listing price to a competitive level, using reliable and advanced repricing software like Seller Snap also gives sellers access to critical information through data analytics. Sophisticated repricers have built-in analytics that can give third-party merchants an overview of their listings’ performance.
Why Do Repricing Solutions Work So Well With Amazon?
We see far more repricers than for any other marketplace and it’s not just because Amazon is 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.
Facilitate Success Through Repricing Software
Repricing is a delicate task, for a simple mistake can drastically affect your overall Amazon business performance. In order to facilitate competitive pricing for your listings, it is highly recommended to use repricers.
Using repricing software for your business can help you beat your competitors in the Amazon marketplace while increasing sales conversion in the process. Integrating repricing software into your Amazon business is perhaps one of the best decisions you can make to improve your Amazon venture.