Cross-Product Repricing – a Strategy (Not Only) for Private Label Sellers
SELLERLOGIC is always striving to create excellent products that enable Amazon sellers to sell better and more economically sustainably. Creating new and improving existing products is a central part of these efforts. The expansion of Repricer to include the cross-product strategy is an enhancement for sellers of all kinds.
In particular, when selling private label products – which are usually offered by only one seller – one usually holds the Buy Box automatically and therefore does not have to fight for it. However, this does not mean that there is no competition here. Rather, this competition takes place on a different level – namely on the search results page, instead of on the product detail page.
Competition at all levels
Here is a practical example: You are a manufacturer of particularly tear-resistant sports socks and want to sell them as a private label product on Amazon. You upload the socks to Amazon and are now waiting for them to fly from your shelves into the shopping carts of customers. You are convinced that your new product will achieve high visibility, because after all, you meet all the relevant requirements: You have a good product, high-quality photos on the product detail page, good Amazon SEO, and – above all – no competition for the Buy Box, since you are selling through private label and not through branded goods.
After a few days, you take a look at the sales figures and are disappointed to find that the result is rather sobering. Why? A quick glance at the search results reveals the answer. When you enter “sports socks” into the Amazon search bar, your socks do not appear at all, but those of the competition do – other private label sellers offering a similar product. Additionally, these sellers have their listing set at a 15% lower price. This is precisely the decisive point in this case.
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The relevance of the product price beyond the Buy Box
Amazon, as one of the most customer-oriented companies in the world, is of course keen to keep product prices on its platform as competitive as possible. This also means that sellers who sell at competitive prices and have flexible pricing will be rewarded with more visibility on the platform and accordingly receive a higher ranking.
On the search results page, the price plays just as big a role as on the product detail page. Visually, the prices in the search results are deliberately displayed prominently and catch the attention of customers even before they read the listing.
In summary: The purchasing decisions of Amazon customers are heavily influenced by the product price. Of course, there will be one or two sellers who can determine prices purely based on desired margin and demand due to the lack of competition for their products. However, most set their prices based on the competition as well. This ensures that the product price remains attractive, which boosts sales figures and thus also the ranking in Amazon search.
In the above example, one of several effective strategies would be to adjust the price to match the already established products, meaning a price reduction of 15%. However, this is not enough. We all know that Amazon is one of the most dynamic e-commerce platforms in the world, and this is also reflected in the pricing of products. Therefore, anyone who wants to sell successfully must stay on the ball. This applies to private label sellers just as much as to sellers of branded goods.
The SELLERLOGIC solution
The cross-product strategy of SELLERLOGIC allows you to compare a selected product with up to 20 similar competitive products and adjust the price accordingly. You only need to follow these steps.
- Go to “My Products” in Repricer
- Select the product to which the cross-product strategy should be applied
- Specify which products should be used for comparison based on the ASIN.
- Enter what price differences the stored products should have compared to your products. Don’t forget to put the minus sign if you want to sell cheaper (e.g., “-0.5” if you want to sell for 50 cents less than the competition).
The settings can be further customized to your preferences within the strategy, for example, you can add other sellers to a blacklist or a whitelist, or choose whether only FBA or FBM sellers should be included. You can learn more about these options in the video provided below.
Automated price optimization offers you additional benefits: The application of the cross-product strategy not only ensures that your pricing remains as attractive as possible, but also prevents underpricing and the associated margin losses. The Repricer of SELLERLOGIC always operates within the minimum and maximum prices you set. An automatic calculation of prices based on your costs is also possible. This way, you maintain your profitability in the simplest way!
This article focuses on the use of the cross-product strategy for private label sellers, although it can also be used by sellers of branded goods.
A practical example: You sell sports socks from the company Adidas as branded goods and become aware of another seller who successfully sells similar socks from the company Snocks on Amazon due to their dynamic and competitive pricing. With the help of the cross-product strategy from SELLERLOGIC, you can align with the competitor’s pricing strategy and thus achieve more sales as well.
You can get a detailed insight into the functionality and benefits of the cross-product repricing strategy here:
Image credit: © Renars2014 – stock.adobe.com
