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Home » Selling on Amazon » Cross-Product Repricing – A Strategy (Not Only) For Private Label Sellers

Cross-Product Repricing – A Strategy (Not Only) For Private Label Sellers

Daniel Hannig
Daniel Hannig
Daniel Hannig,
Published: April 25, 2023
Updated: June 19, 2023
5 min read
Table of contents
  • Competition at All Levels
  • The Relevance of the Product Price Beyond the Buy Box
  • Considers Your Competitors: The SELLERLOGIC Solution
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Produktübergreifendes Repricing von SELLERLOGIC

SELLERLOGIC is always striving to create products that enable Amazon sellers to improve their game and sell in a more economically sustainable way. Creating new products and refining existing ones is a key part of this effort. The addition of the cross-product repricing strategy to the Repricer is an asset for Amazon sellers of all types.

Especially if you sell private label products – which are usually only offered by one seller – you are bound to hold the buy box automatically, meaning that you don’t have to bother fighting for it. However, this does not mean that there is no competition here. It rather means that it only takes place on a different level – namely on the search results page, instead the product detail page.

Competition at All Levels

Here’s a real-world 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 off your shelves and into the “add to cart” area of your 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 – most importantly – no competition for the Buy Box, since you are selling via private label and not over wholesale. 

After a few days, you take a closer look at the sales figures and are disappointed to find that the result is rather sobering. Why? A quick glance at the search results gives you the answer you’re looking for. If you enter “sports socks” into the Amazon search bar, your socks won’t even show up at first, your competitors’ socks however show up directly – these competitors mainly consist of other private label sellers that are offering a similar product. What’s more, these sellers are posting their listing at a 15% lower price. This is exactly the crucial point in this case.

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The Relevance of the Product Price Beyond the Buy Box

Amazon is naturally keen to make product prices on its platform as competitive as possible – after all, their reputation for customer-centricity did not establish itself on its own. This also means that sellers who sell at competitive prices and whose pricing is flexible are rewarded with higher visibility and ranking on the platform. 

On the search results page, pricing plays just as big a role as it does on the product detail page. If you take into account the visual perspective, for example, you can directly see that the prices are prominently displayed in the search results and catch the eye of customers before they even read the listing.

When it comes to cross product repricing, the prices are important

What does this mean in short? The purchasing decisions of Amazon customers depend heavily on the product price. Of course, there will probably be one or two sellers who can set prices purely on the basis of desired margin and demand due to the lack of competition for their products. If you are one of those lucky few, congrats. Sincerely ?. Most sellers, however, will set their prices based on competition. This ensures that the product price remains attractive, which drives up sales figures and indirectly also the ranking in the Amazon search results.

In the above example, one of several target-oriented strategies would be to adjust the price to the already established products, i.e., to reduce the price by 15%. However, this is not the end of the story. 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 the products. So if you want to sell successfully, you can’t allow yourself to fumble the ball. This applies to private label sellers just as much as it does to sellers of retail goods.

Considers Your Competitors: The SELLERLOGIC Solution

SELLERLOGIC’s cross-product repricing strategy allows you to compare a selected product with up to 20 similar competitive products and adjust the price accordingly. All you need to do is perform the following steps.

  1. In the Repricer, go to „My Products” 
  2. Choose the product to which the Cross Product strategy should apply to (see screenshot 1 for more details).
  3. Use the ASIN to specify which products are to be used for comparison (see screenshot 2 for more details).
  4. Enter which price distances the deposited products should have to your products. Don’t forget to put the minus sign here if you want to sell cheaper, e.g. “-0.5” if you want to sell for 50 cents cheaper than the competition (see screenshot 3 for more details).
Cross-Product Strategy Screenshot 1 for SELLERLOGIC Repricer
Screenshot 1: After you went on “My products” in the Repricer, choose the product on which you would like the Cross-Product Repricing Strategy to be applied to, click on the dropdown menu as indicated above and click on “Cross product”.
cross-product-strategy-screenshot2
Screenshot 2: Use the ASIN to specify which products are to be used for comparison.
cross-product-strategy-screenshot3
Screenshot 3: Enter price gaps to the competitor’s product. In this case, you would charge 50 cents more than the competition.

The settings can be customized even more as part of the strategy, for example, you can blacklist or whitelist other sellers, or choose whether to include only FBA or FBM sellers. 

Apart from this, there are even more benefits to automated price optimization that you can leverage: using the cross-product strategy not only ensures that your pricing remains as attractive as possible, but also prevents you from pricing too low and losing margin. This is because SELLERLOGIC’s repricer always stays within the minimum and maximum prices you specify. An automatic calculation of prices based on your costs is also possible. This is the easiest way to maintain your profitability!

Even though this article focuses on the use of the cross-product repricing strategy for private label sellers, it can also be very well used for sellers of retail goods. 

Another real-world example: You sell Adidas sports socks via wholesale and become aware of another seller who sells similar socks from the company Snocks via Amazon and does so very successfully due to his dynamic and competitive pricing. With the help of SELLERLOGIC’s cross-product strategy, you can monitor your competitor’s pricing strategy, adapt to it or even mirror it and thereby remain just as competitive.

If you have any further questions and want to get deeper insight into how you can use the above mentioned strategies in your day-to-day, don’t hesitate to contact us.

Image credit: © Renars2014 – stock.adobe.com / screenshot Amazon.com

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