Simply using Amazon repricing software does not guarantee that you will make a lot of profits. Your sales may increase but your profits may stagnate or even fall. There are things you need to know, understand, and do to achieve success in using repricing software.
Choosing the Right Repricing Software Tool
Don’t expect repricing software from various developers to be mostly the same. You need to be careful with what you choose. It is advisable to get one from a company that really specializes in repricing systems, a software developer that does not only offer a repricing tool as one of its many software products for various purposes. Consider one from Feedvisor, for example, which focuses on algorithmic repricing and revenue intelligence solutions. Go over reviews and feedback from actual sellers who use repricing software.
Targeting the Amazon Buy Box
One of the most important things you need to achieve if you are an Amazon seller is winning the Buy Box. To do this, you will not be relying solely on your repricing software. First, you need to achieve the Featured Merchant status. Once you become a Featured Merchant, you can proceed to work on your repricing strategy to make your listings more eligible for the Buy Box. There’s no exact strategy you can use but there is one highly referenced “secret” formula you can start with: Buy Box Win = Lowest Price – 2.7% – $.01. This formula, however, only works if you have good seller performance, which means you shouldn’t have a history of shipping delays, complaints from customers, and other issues.
Choosing Your Competition
Don’t reprice in response to every other seller’s price adjustments. If you chose a good Amazon repricing software tool, it likely includes a feature that lets you configure how you automate your price changes in relation to certain types of seller. For example, for your FBA products you could set your repricer to only react to price changes of FBA products. Good repricing software should let you set different rules for different product types.
Avoiding Aggressive Price Wars
You can’t maximize profits if you set your Amazon repricing software to engage in price wars, wherein you always try to outdo your competitors’ lowered prices. Price wars are not worth it when it comes to profitability. You may engage in price wars to attract buyers but don’t make it your policy or the core of your strategy.
Amazon repricing tools are created not to make you have the lowest prices all of the time. Instead, they should let you set the ideal prices that will yield the highest possible profits while driving sales up. Choose your repricer software tool wisely and be sure to understand its features and use them.