If you’re a third-party Amazon seller or an Amazon buyer for that matter, you already know that there can be multiple sellers for one item. So while many of these sellers are left out of the Buy Box, few are sharing it. Why is this? Well besides for customer reviews, your seller rating, and your selling frequency, your price plays a factor.
Ensuring your price is competitive means you could potentially share the Buy Box. Hence an Amazon price strategy or Amazon repricing strategies should be adapted.
There are a few Amazon price strategies you can look to when trying to understand your pricing needs. Of course, the general goal for sellers is to make sales. There are many ways to go about this, but there are a few ‘most effective’ ways to figure out your Amazon price strategy, and understanding these Amazon repricing strategies will make you a better Amazon seller overall.
Repricing Strategies: A Brief History
There are a few ways to reprice on Amazon with the help of reliable Amazon price strategies. You can either manually reprice (which is not recommended for sellers with more than a few items), or you can use a repricer. Most competitive sellers opt for a repricing solution. There are two kinds of repricers; rules and conditions based or you can use an AI algorithmic repricer, like Seller Snap, that learns what your competitor’s rules and conditions are and uses them to earn you a higher share of the Buy Box at the highest possible price. Algorithmic repricers also allow for rules and conditions if need be.
Rules-based repricer logic is set up and optimized by the user. Requiring consistent motoring and tweaking. This can be time-consuming depending on how many items are in your store. This type of repricing can lead to price wars and a race to the bottom ( where competitors end up undercutting each other by a penny back and forth).
AI algorithmic repricers work at understanding and predicting your competition’s decisions and learns from them to help capture the Buy Box. In general, AI algorithmic repricers are a bit more expensive and are recommended for sellers who have greater amounts of inventory.
Sellers sorting out Amazon price strategies should highly consider having a repricer that is automated and AI powered.
Repricing is an important part of staying competitive in the Amazon game. There are other factors that are important as well. For example, simply being an FBA (fulfilled by Amazon) seller increases your Buy Box chances. In addition, your shipping prices and customer reviews matter as well. There are many factors when it comes to gaining the Buy Box, but it is not an impossible feat!
Dynamic Amazon Pricing Strategy
When you’re thinking of your Amazon repricing strategy you want to make sure that you have all the pieces in place. In this article, we’ve touched on many factors that can impact your Buy Box chances, from customer reviews to pricing and all the in-between.
Now let’s look at some other factors. Is the ASIN you are selling also being sold by other sellers? If there are multiple sellers creating competition, having a repricer that actively reprices for you will help with your chances of capturing the Buy Box and making sales. Look at your competition – see their reviews, see what their shipping time seems to be, having a good shipping time is really beneficial in gaining the Buy Box.
Selling products through FBA definitely contributes to gaining the Buy Box. In terms of your Amazon repricing strategy, having FBA items could be a beneficial move. The reason FBA has a higher Buy Box chance is that these items can be offered to Prime Members and with the benefit of expedited shipping time. If an item is Prime and shipped by Amazon then it will arrive faster, which is part of Amazon’s customer-first mentality.
If Amazon thinks you are a trustworthy seller, your customers think you are a trustworthy seller and they have given you good reviews, you will be on your way to win the Buy Box. Being an overall good seller will help your chances at the Buy Box.
In order to make and maintain sales, you need to be in the Buy Box. In order to be in the Buy Box, you need a variety of things, and reviews from your sales are part of that equation. Involving a repricer in your Amazon repricing strategy will help with the constant price fluctuations that happen due to other sellers using repricers. Being able to keep up and gaining a higher share of the Buy Box is the way to stay competitive in the Amazon game.
Once you have started using a repricer and seeing the data that it can provide you with, you will understand why having a repricer is so important. Seller Snap provides robust analytics to help you to understand your store and to better help you gain the Buy Box.
It’s not about one specific thing, it is a plethora of factors that come together to help you gain the Buy Box. Let your repricer help you do the extra work so you can focus on the other pieces of your Amazon Business.