Launch with the right pricing strategy: Find the strategy that truly fits your business with the SELLERLOGIC Repricer – including practical examples!
With the SELLERLOGIC Repricer for Amazon, online retailers have access to a variety of different strategies that can either be tailored to individual needs or automatically optimize prices reliably. The strategies are versatile and are aimed at both sellers of retail goods and owners of private labels.
The SELLERLOGIC Repricer never ignores the set minimum or maximum price. The optimization thus only occurs within the specified price range. If matching or underbidding the price is limited by the set minimum price, this minimum price is applied. If there is an opportunity to raise the price, it will be increased up to the maximum price.
Is everything here moving a bit too fast for you, or do you want to refresh your basic knowledge at this point? Then you can find everything on the topic: “What is repricing and what are the 14 biggest mistakes retailers should avoid?”
Optimization strategies of the SELLERLOGIC Repricer
The SELLERLOGIC Repricer can do much more: With the presented strategies, both inexperienced and seasoned online retailers can optimize their prices. The strategies are available to every customer at no additional cost and can be applied to individual products as well as product groups. Below, we would like to introduce you to the various strategies in more detail.
#1: Buy Box
About 90% of all sales on Amazon occur through the Buy Box, as very few customers even notice that there is a second box with additional sellers further down the product page. Accordingly, the competition for the small yellow shopping cart field is particularly high for retail goods. Therefore, the SELLERLOGIC Repricer has a strategy specifically developed for optimization for the Buy Box.
To win the Buy Box, the product price is crucial, along with several other factors. Unlike many other conventional repricing tools, the SELLERLOGIC tool does not solely rely on the lowest price. Once the Buy Box has been won, the work of our repricer is not done: it continuously analyzes the market situation and raises the price until either the maximum price is reached or the premise of maintaining the Buy Box prohibits any further price increase.
In this way, it is possible to win the Buy Box with the SELLERLOGIC Repricer without losing sight of your own margin. On the contrary: you increase your sales and achieve higher prices and higher margins than without using the tool!
Application example of the Buy Box strategy
#2: Cross-product strategy
However, the Buy Box is not crucial for all sellers on Amazon. Private label products are usually offered by only one seller and therefore automatically hold the Buy Box. In such listings, the competition does not take place on the product detail page, but on the search results page. Everything revolves around visibility: whoever secures a good ranking here wins the customers.
In addition to optimal Amazon SEO, the product price also plays a role here. And not just for the algorithm, but also for the customer. Because Amazon prominently displays the price of the product even before customers have clicked on a listing.
The purchasing decisions of Amazon customers are therefore heavily dependent on the product price. Those who have no competing products can of course decide purely based on the desired margin and demand – but very few sellers or manufacturers enjoy this comfortable situation. All others should set their prices based on the competition as well. This ensures that the product price remains attractive, leading to higher sales figures and a higher ranking in Amazon search.
With the cross-product strategy from SELLERLOGIC, a selected product can be compared with up to 20 similar competitive products and adjusted in price accordingly. Sellers specify which products to use for comparison based on the ASIN and set the price gaps to the listed products. The repricer then regularly checks the competitive prices and makes price adjustments if necessary.
However, automated price optimization has additional advantages: the application of the cross-product strategy not only ensures an attractive pricing structure but also prevents pricing too low and the associated margin losses. The SELLERLOGIC Repricer will never ignore your minimum and maximum prices. An automatic calculation based on your costs is even possible. This way, you maintain your profitability in the simplest manner!
#3: Daily Push
However, not every Amazon seller sells highly competitive retail goods. For lesser-known brands with only one seller or even private labels, it would be unwise to force the Buy Box, as it is usually won without price optimization. Instead, with the Daily Push strategy, it is possible to optimize based on one’s own sales figures.
The SELLERLOGIC Repricer starts daily at 00:00 with a set starting value, for example, the minimum price. If sales figures increase, the price can be gradually raised based on this increase, for example, by three percent for every 50 units sold. It is also possible to combine different rules, such as having the price increase be proportionally higher the more items of a product have already been sold. Conversely, the opposite case can also be set: after X units sold, the price decreases by Y percentage points.
Application example 1 of the Daily Push strategy
Let’s assume a retailer sells decorative items of their own brand “SiehtGutAus” on Amazon, including high-quality candle holders with a starting price of 39 euros. While there are usually some orders in the morning, the daily business mainly takes place in the evening hours. Therefore, the retailer instructs the repricer to lower the price of the candle holder SKU by five euros after 50 units sold. After another 50 sales, the price decreases again by four euros.
The price reduction usually boosts sales, which in turn increases the ranking of the product detail page. In the evening hours, when most buyers in this category browse Amazon, the visibility and findability of the product are significantly better, and sales increase. At midnight, the price is raised again – thus preventing a price decline.
Application example 2 of the Daily Push strategy
The same seller is also active in the pet supplies sector. With a starting price of 50 euros, the ten-kilogram bag of premium dry dog food is not a bargain, but due to the single protein source and organic ingredients, the food has established itself in the market and is fairly well-known among dog owners with allergic dogs. As a result, the product has already built up a good visibility in Amazon search. With the repricer, the seller now raises the price by ten percent after 20 units sold, lowers it again by ten percentage points after another 20 sales, raises it again, and so on.
In this way, he is able to achieve a higher margin for this product throughout the day without risking a potential loss of findability or visibility of the listing.
#4: Push
The Push strategy also allows for price optimization based on sales figures using the SELLERLOGIC Repricer. Unlike the Daily Push, the Push strategy is not applied in a 24-hour rhythm but can be extended over a duration defined by the customer. Additionally, time-based and quantity-based optimization can be combined.
Private label sellers especially benefit from being able to control their selling prices over a longer period and thus influence the demand for the product. For example, it is possible for the repricer to raise the price by a certain value Y during particularly high demand in the last X days. Conversely, with declining demand, it optimizes the price downwards.
Of course, it is also possible with this strategy to prevent the loss of the Buy Box by checking the corresponding box. This makes the Push optimization suitable for sellers of less competitive retail goods as well.
Application example 1 of the Push strategy
Our seller has found that he is receiving more and more inquiries about whether the monoprotein dog food is also available as wet food. Therefore, he is now selling the food in a can as well. However, since this is a new listing on Amazon, visibility and findability after the product launch are correspondingly poor. Therefore, the seller stipulates that the repricer should increase the product price by 0.10 euros after five sales and by 0.50 euros after ten sales. After 15 sales, the price should then increase by 3% and by 5% after 20.
In this way, margin and ranking can be gradually increased.
Application Example 2 of the Push Strategy
In addition, our seller has added another candle holder to his decoration range. Due to the unusual design, he is not sure whether the product will be well received. Therefore, he instructs the repricer to adjust the price down by one euro if less than ten pieces of the item are sold within a week. However, if more than 20 pieces are sold, the price should increase by one euro. If between ten and twenty sales are registered, the current price remains unchanged.
In this way, the seller can optimize the price up to the point where the product reaches the customers. If the desired sales figures are not achieved, the product will sell out and capital will be freed up. On the other hand, the margin is maximized when demand for the product increases.
#5: Manual
Every Amazon seller has their individual needs. We understand that you have your own demands for a Repricer. Therefore, with the SELLERLOGIC Repricer, you can also create a manual strategy that is tailored exactly to your business. The manual strategy refers either to the cheapest competitor, to the competitors defined in the “whitelist,” or to all other competitors that are not excluded by the “blacklist.”
For this, the SELLERLOGIC Repricer provides you with some parameters:
- desired price distance and type of value (amount or percentage points)
- Whitelist (only these sellers are included) or Blacklist (these competitors are ignored)
- Minimum number of reviews (sellers with less than X reviews will not be considered in the optimization)
- Minimum seller ratings (sellers with less than X percent positive ratings will not be considered in the optimization)
- Maximum delivery time (offers with more than X days delivery time will not be considered in the optimization)
- Application for offers with FBA, FBM, or all fulfillment methods
- Application for offers from domestic, foreign, or both
Example application of the manual strategy
In addition to decorative items and pet supplies, our seller also offers commercial goods such as some electronic products, including a daylight alarm clock from a lesser-known brand. However, there are other sellers on this listing, of which only a few are real competitors. All others have very long delivery times or show poor performance. Therefore, the seller creates a blacklist and undercuts only the price of the competitors who are not part of the blacklist.
#6: Position
Aside from position 1 in terms of the Buy Box, up to three additional sellers are often displayed on the product detail page. The repricer is capable of optimizing for these positions as well. For example, if the third position is to be maintained permanently, the SELLERLOGIC tool adjusts the selling price accordingly.
Example application of the position strategy
The daylight alarm clock from the example above is performing quite well. So well, in fact, that Amazon takes notice of the item and asks our seller if he would like to sell directly to Amazon. He does not want to miss this opportunity, but he is aware that his work is not yet done.
From now on, Amazon inevitably wins the Buy Box. Therefore, the seller sets the repricer so that it holds the second position with its remaining offer. In this way, it can keep the selling price of the Amazon offer stable with its own price and benefits doubly.
Further possibilities to use the Repricer
In addition, the SELLERLOGIC Repricer also offers rule-based optimizations. Therefore, it is possible to optimize the price in the following ways:
- Fixed price: With the “Simple” strategy, sellers can assign a fixed price to a product or a group of products.
- Margin: Those who want to achieve a constant margin of, for example, 15 percent are well advised with the strategy of the same name. The following applies: Purchase price + desired value or percentage + shipping costs + other fees + Amazon fee + VAT = Selling price.
- Same price: With this setting, sellers adjust their price to that of a direct competitor.
Normally, the dynamic strategies are preferred over the rule-based settings, as no human could perform the data-intensive analysis faster or better than the SELLERLOGIC algorithm. Nevertheless, there are cases where rigid rules are the smarter option, for example, when results should be as easily calculable as possible. These strategies can be effectively used by private label providers as well as by sellers of branded goods.
Onboarding and consulting included!
Especially at the beginning, the many optimization and setting options of a repricer can overwhelm the user. However, this is no reason not to try out the sales-boosting possibilities, not least because customer service is included with SELLERLOGIC. We provide you with comprehensive advice before and after the activation of the tool.
Every customer receives comprehensive onboarding from us, which not only aims to familiarize them with the user interface – it is equally important to us that the SELLERLOGIC Repricer achieves the best results for you. Therefore, we are happy to set up the tool together with you and tailor all settings to your individual business! Should any problems arise or questions come up, we are always available to assist you – even if you have been using the repricer for a long time.
Our service is already included in the product price! There are no additional costs for setup or similar services. To help you get to know the repricer, we also offer you the opportunity for a non-binding 14-day trial period. This trial period does not automatically extend, but only if you actively agree to it. You will, of course, still benefit from our onboarding!
