Private Label Repricer: Insider Knowledge That Your Competition Lacks
Did you know that Private Label and repricers make a great combination? It’s a competitive advantage that your competition often knows nothing about. What is common in the branded goods business is often not utilized by private labels. What is the reason for this, and what can private label sellers learn from third-party sellers on Amazon?
Those who want to make a living from online retail generally believe that selling branded goods is the easiest way to generate profits. Private label sellers on Amazon, however, know that selling a unique product that stands out from the crowd can be the better solution. As a private label seller, you do not compete for the Buy Box like your branded goods counterparts. You do not have to pay attention to the competition when pricing. Or do you?
A brief introduction for those who are not familiar with the business of private labeling.
These Advantages Come with an Amazon Private Label Business
The private label business is both brilliant and straightforward. As a private label seller, you purchase from the manufacturer to then label and market the goods under your own brand name. There is no competition for the Buy Box. Additionally, you can benefit from further advantages when selling private labels on Amazon:
Private Label Repricer for Amazon: The Importance of Competitive Pricing
Private label sellers often overlook the extensive features of a repricing tool. The first thought that comes to mind is that automatic price adjustment on Amazon is only necessary for branded goods to win the Buy Box with the lowest price. However, a repricer can do much more than that for private label products.
Amazon is flooded with similar or even identical items. Unless you have discovered a niche that has not yet been occupied, it is highly likely that the item is also offered by other sellers. The notion that “private label products have no competition” is simply incorrect.
If you offer an item at a certain price and profit margin, other private label sellers offering comparable goods will likely sell at a lower price than you. A smart approach is to ensure that your prices align with the current competition for similar products. For similar items, consumers are more likely to choose the cheapest offer.
Dealing with the competition and comparing prices can be tedious and require significant effort, especially if you plan to offer more than ten products. At this point, it is worthwhile to consider the benefits of a private label repricer.
How can you optimize your product listing with the private label repricer?
A dynamic repricer offers much more than simply pushing the price down. The SELLERLOGIC Repricer provides private label sellers with various strategies that allow them to sell their products at competitive prices without sacrificing margin. Let’s take a closer look at different strategies.
Daily Push Strategy
Let’s imagine that you, as a private label seller, sell cosmetics. Based on experience, you know that your target audience typically realizes in the morning before work or in the evening before bed that their supply of cream or makeup remover pads is running low, and accordingly purchases these products at those times. Your revenue from this product thus rises and falls depending on your customers’ routines. Manually adjusting the prices would be a pure waste of time and, consequently, money.
For such a product, the Daily Push strategy could work very well. The SELLERLOGIC Repricer sets a specific starting price at midnight each day and then continuously optimizes it. During periods of low demand, sellers can stimulate demand by offering lower prices. Conversely, during times of high sales, profits can be maximized through a price increase. This dynamic repricing allows sellers to respond to market changes and optimize their profit margins.
Sales-Based Strategy: Repricing Your Listings Based on Sales Intensity
Let’s continue with the example of cosmetic products: sunscreen is sold more frequently during high temperatures. With a fixed price, you forfeit your margin. In the case of private label, the repricer offers a strategy based on sales. This means that the price of a product is adjusted according to the quantity sold, thereby influencing demand in the long term. For example, if sales increase, the price can be gradually raised by five percent for every 30 units of the cosmetic product sold.
The rule works in reverse as well. Depending on the weather conditions, sunscreen is purchased less frequently. If you sell fewer than X units per week, you can gradually lower the prices without sacrificing the minimum price. Once you find the right price that promises the greatest success, it will be maintained until the item becomes popular again.
And all of this is automated. You set the minimum price, the percentage price adjustment upwards or downwards, and the sales volume. The rest is handled by the price optimization software for you.
Cross-Product: Repricing Your Listing in Comparison to Competitors
When repricing, comparing with the competition is essential: Look for offers from your competitors and allow the repricer to set prices accordingly. A price that is set too high can hinder sales, while a price that is set too low unnecessarily leads to narrower profit margins.
Let’s continue with the example of cosmetic products: You sell eye pads and have 606 other competitors in the search results. Conduct your own research on Amazon to identify which offers and deals are available under the key keywords. Limit your circle of competition to 20 competitors with whom you want to compete for customers, and determine the desired price gap using the ASIN.
The SELLERLOGIC Repricer regularly checks the prices of these products and adjusts your price accordingly. This ensures that you remain competitive. You may even contribute to increasing your sales by matching the lowest-priced offer. After all, buyers almost always choose the item with the lowest price from a range of comparable offers.
Conclusion
Private label sellers on platforms like Amazon have a unique position as they have control over their brand, products, and prices. However, to remain competitive, effective strategies and tools are necessary. Utilizing a private label repricer like SELLERLOGIC can be immensely helpful in dynamically adjusting prices, thereby increasing sales, optimizing profit margins, and keeping pace with the competition. SELLERLOGIC offers various repricing strategies tailored to different situations and needs. This article clearly demonstrates that repricing is not only sensible for private label sellers but essential for success in an increasingly competitive online retail environment.
“Private Label” comes from English and means “own brand.” Products under a private label are items that are specifically produced for a seller, allowing them to market them under their own brand name. As a seller, you have the opportunity to customize or improve the selected items according to your requirements or preferences directly with the manufacturer. Additionally, manufacturers can provide custom packaging upon request or print the product with your company logo.
Unlike private label products, with branded goods, you utilize already established brands and therefore do not need to build a new one. You act purely as a seller and could offer products like Oral-B toothbrushes or Nike shoes on Amazon. The brand is already established, and customers will specifically search for it. As a seller, your main focus is then on winning the Buy Box.
