Private Label Repricer: Insider knowledge that your competition lacks
Did you know that Private Label and Repricer make a great combination? A competitive advantage that your competition often knows nothing about. What is common in the merchandise 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 trading generally believe that selling merchandise is the easiest way to make profits. Private Label sellers on Amazon, however, know that selling a product that stands out from the crowd with unique components can be the better solution. As a Private Label seller, you do not compete for the Buy Box like your merchandise colleagues. When it comes to pricing, you do not have to pay attention to the competition. Or do you?
A brief introduction for those who are not familiar with the Private Labeling business.
These advantages an Amazon Private Label business offers
The business with private labels is brilliant and simple at the same time. 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 in 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 merchandise to win the Buy Box with the lowest price. However, with Private Label, a repricer can do much more than that.
Amazon is flooded with similar or even identical items. Unless you have discovered a niche that has not yet been occupied, the item is most likely also offered by other sellers. The idea 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. Because with similar products, consumers are more likely to choose the cheapest offer.
Dealing with the competition and comparing prices can be tedious and require a tremendous effort, especially if you plan to offer more than ten products. At this point, it is worth considering the advantages of a Private Label repricer.
How can you optimize your product listing with the Private Label repricer?
A dynamic repricer offers much more than just rigidly pushing the price down. The SELLERLOGIC Repricer provides Private Label sellers with different strategies that allow you to sell your products at competitive prices without sacrificing margin. Let’s take a closer look at various 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 notices that their supply of cream or makeup remover pads is running low either in the morning before work or in the evening before going to bed, 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 thus also money.
For such a product, the Daily Push Strategy could be very suitable. The SELLERLOGIC Repricer sets a specific starting price at midnight each day and then continuously optimizes. During periods of low demand, sellers can stimulate demand by offering lower prices. In times of high sales, on the other hand, profit can be maximized by increasing prices. This dynamic repricing allows sellers to respond to market changes and optimize their profit margins.
Sales-based strategy: Repricing your offers based on sales intensity
Let’s continue with the example of cosmetic products: sunscreen is sold more frequently at high temperatures. With a rigid price, you forfeit margin. In the case of Private Label, the repricer offers a strategy that is 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 also works in reverse. Depending on the weather, 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 determine the minimum price, the percentage price adjustment upwards or downwards, and the sales quantity. The rest is handled by the price optimization software for you.
Cross-product: Repricing your offer in comparison to competitors
When repricing, the comparison with the competition should not be overlooked: Look for offers from your competitors and allow the repricer to set prices accordingly. Because while a price set too high can hinder sales, a price 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. Conduct your own research on Amazon to identify which offers and deals can be found under the main keywords. Limit your circle of competition to 20 competitors with whom you want to compete for customers, and determine the desired price gap using ASIN.
The SELLERLOGIC Repricer regularly checks the prices of these products and adjusts your price accordingly. This ensures that you remain competitive. If necessary, you can even contribute to increasing your sales with the lowest-priced offer. Because 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 required. The use of a private label repricer like SELLERLOGIC can be extremely 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 shows that repricing is not only sensible for private label sellers but essential to succeed in an increasingly competitive online retail environment.
“Private label” comes from English and means “own brand.” Products under an own brand are items that are specifically produced for a retailer, allowing them to sell them under their own brand name. As a seller, you have the opportunity to customize or improve the selected items directly with the producer according to your requirements or wishes. Furthermore, producers can provide custom packaging upon request or print the product with your company logo.
In contrast to private label, with merchandise you use already established brands and therefore do not have to build a new one. You act purely as a seller and could, for example, offer Oral-B toothbrushes or Nike shoes on Amazon. The brand is already established, and customers will specifically search for it. As a retailer, your main focus is then on winning the Buy Box.
