Helping Your Business Take Off With the Right Repricing Strategy
A lot of sellers don’t believe that a proper repricing strategy is necessary to drive up profits. The striking part is that these are often sellers that have worked with repricers before. The question is: how did this happen?
There are many so-called “strategic repricers” that – despite their name – only follow one strategy: sell at a cheaper price than the competition to make the sale. Who profits the most from this? The customers and the online platform on which the goods are sold. The sellers, on the other hand, often end up losing money due to the price wars these repricers incite. As I said: Sometimes you may have a good reason to hate repricers if you sell on Amazon.
But what if someone developed a repricer that works with more than repricing strategy to ensure that you continue making more sales than your competition while selling at the highest possible price?
With its fully automated and reliable algorithm, the SellerLogic Repricer offers a variety of tactics that can be tailored to your specific needs and/or completely take over your repricing strategy.
Our Repricer never ignores the set minimum or maximum price, meaning that the optimization moves exclusively within the set price range. If a matching or undercutting of the price is limited by the set minimum price, the Repricer stops at said minimum price. If there is a possibility to increase the price, the Repricer will increase the price as high as possible.
How A Repricer Can Help Your Business Grow!
Learn in a compact and clear way how you can optimally support your business with a repricer – with repricing strategies, methods and how to apply them to your business!
1 Week – 7 Emails – Multiple Learnings!
Optimization Strategies with the SellerLogic Repricer
Is that all our solution can do to help you with your repricing strategy? Most certainly not. It doesn’t matter whether you are new to the online-selling game or a seasoned veteran on the Amazon playing field, our strategies offer everyone benefits in regard to price optimization and are the best example of how automatic repricing boosts your Amazon sales. The strategies are available to every customer at no extra charge and can be applied to both individual products and product groups alike.
Let’s take a closer look at what we’re working with.
#1: The Buy Box Repricing Strategy
Why would we need an Amazon Repricer Tool? Nearly all sales on Amazon take part over the so-called “Buy Box”, which is another name for the orange golden button on the right-hand side of your Amazon product page, labeled “Add to cart”. Around 90% of all purchases happen by clicking this button. So far so good.
Here’s the catch: only one product at a time can be attributed to the “Add to cart” field. In other words, only one product at a time can be in the Buy Box. This of course leads to fierce competition between margin-hungry sellers, especially if you sell over Amazon Wholesale. This is why we developed a strategy for our Repricer that is designed to help you win the Buy Box as often as possible.
The final price is not the only, but certainly the most important factor you will need in order to win the Buy Box. Unlike other repricers, our solution does not simply ensure that you win the Buy Box, but goes a step further. Once you are the Buy Box owner, our repricer analyzes the market situation and raises your price until either the maximum price is reached, or raising the price any further would mean that you would lose the Buy Box.
Simply put: The SellerLogic Repricer helps you to stay in the Buy Box while selling at the highest price possible!
Buy Box Repricing Strategy: Example
The Buy Box repricing strategy is what our Repricer does best. In the vast majority of cases, the goal of Wholesale sellers is to win and hold the Buy Box as often as possible. This strategy is therefore particularly suitable for products of other brands where there is high competition for the Buy Box, for example, the electric toothbrush with the ASIN “B07DGMWKK9”. Over 30 merchants are selling this specific brand product and are competing with each other for the Buy Box (as of February 2021). In this particular case, sellers that use our repricer have the advantage here that their product is optimized not only for the lowest price but for the highest possible price.
#2: Daily Push
Of course, not every seller chooses the very competitive life of Wholesale. So what repricing strategy do you need when winning the Buy Box is not your top priority? If you sell over Private Label, for example, winning the Buy Box is simply not your prerogative, mainly because you are selling a unique product and there is no one who can compete for the Buy Box with you. What you need now is a repricing strategy that will improve your sales due to other factors.
The SellerLogic Repricer starts every day at 00:00 at a fixed starting value, for example the minimum price. If sales increase, the price can be raised gradually on the basis of this increase, for example, by three percent per 50 units sold. It is also possible to combine different rules, such as increasing the price rise % the more units of a product have been sold. The opposite case would look like this: after X units have been sold, the price falls by Y percent.
Daily Push Repricing Strategy: Example #1
Let’s say you would sell decorative items of your own brand called “AwesomeDeco” on Amazon. One of your top sellers is a high-quality candle holder with a starting price of 39 euros. Although some orders usually come in in the morning, the day-to-day business takes place mainly in the evening hours. Therefore, the retailer instructs the repricer to lower the price of the candlestick SKU by five euros after 50 units have been sold. After another 50 sales, the price drops again by four euros.
The price reduction aims at boosting sales, which in turn increases the ranking of the product detail page. In the evening hours, when most buyers in this category are browsing Amazon, the visibility and findability of the product are significantly better and sales pick up. At midnight, the price is raised again – preventing a price drop.
Daily Push Repricing Strategy: Example #2
After your success with home decoration products, you decide to branch out to the pet supplies sector. With a starting price of 50 euros, the ten-kilo bag of the premium dry dog food (“AwesomeDoge”) you offer is certainly no bargain. However, due to unique factors such as its monoprotein source, organic ingredients, and creative marketing from your side, it has been able to establish itself on the market and is reasonably well known among pet owners with allergic dogs. As a result, the product is able to generate high visibility in the Amazon search results.
To capitalize on this situation, you want to raise the price after a certain amount of units are sold, increasing your revenue. On the other hand, you also don’t want to overprice your product and keep the sales coming in, which is why you lower it again after the same amount of units are sold. You can automate and customize this process with our Repricer. In the example below, the seller raises the price by ten percent after 20 units are sold, lowers it again by ten percent after another 20 sales, raises it again, and so on.
Apart from the benefits we mentioned above (higher revenue, constant sales,) another neat side effect of this repricing strategy is that you will maintain your high visibility in the Amazon search results.
The Push Strategy is another way to optimize your prices according to your sales figures. Unlike the Daily Push Strategy, however, the time frame is not bound to 24 hours but can be determined by the seller. Moreover, the Push Strategy enables you to combine time-based and item-based optimization freely.
This is especially beneficial for Private Label sellers because they are able to control their sales prices over a longer period of time and thereby influence demand for the products. For example, you can program the Repricer to raise the price by a certain amount Y if demand has been particularly high in the last X days. When demand decreases, the Repricer again optimizes the price downwards.
Of course, it is also possible to prevent the loss of the Buy Box by setting the check mark in the appropriate place. That way the Push Strategy can also be applied by Wholesale sellers that sell products in a less competitive sector.
Push Repricing Strategy: Example #1
AwesomeDoge is getting noticed and picking up momentum. In fact, it has become so popular that you have decided to sell a wet dog food alternative in addition to the dry one. However, since this is a new listing on Amazon, visibility is correspondingly poor after the product launch. Therefore, you program the Repricer to increase the product price by 0.10 euros after five sales and by 0.50 after ten sales. After 15 sales, the price should then increase by 3% and after 20 by 5%.
This way, you are able to increase margins and visibility on Amazon bit by bit.
Push Repricing Strategy: Example #2
Back at AwesomeDeco, you recently added a flamboyant candlestick to your decorative ensemble. However, due to the unusual (and very loud) design, you are unsure whether the product will be popular. Therefore, you instruct the Repricer to lower the price by one euro if less than ten pieces of the item are sold within a week. If, on the other hand, more than 20 units are sold, the price is to be increased by one euro. If between ten and twenty sales are made, the current price is to stay the same.
This way, you can optimize the price up to the point where the product reaches the customers. If you don’t manage to sell as much as you like, the product sells off and capital is freed up. On the other hand, if demand for the product increases, the margin is maximized.
You can also create a manual strategy tailored to your business. The manual strategy can either address the competition selling at the cheapest price, the competition defined in your “whitelist” or all competitors that are not excluded by your “blacklist”.
These are the parameters you can set for optimal results:
- Desired price gap and type of value (amount or percent).
- Whitelist (only these sellers are included) or blacklist (these sellers are ignored).
- Minimum number of ratings (sellers with less than X ratings are not included in the optimization).
- Minimum seller ratings (sellers with positive ratings that are less than X percent will not be included in the optimization).
- Maximum delivery time (offers with more than X days delivery time will not be considered during optimization).
- Application for offers with FBA, FBM or all fulfillment methods.
- Application to domestic, international and/or both offers.
Manual Repricing Strategy: Example
In addition to decorative items and pet supplies, your merchandise also includes electrical products. For example, a daylight alarm clock from a lesser-known brand. Even though the brand is not a household name, there are other sellers on this listing, but only a few of them are real competitors. All the other sellers either have very long delivery times or perform poorly, meaning that they are not a force to be reckoned with. Therefore, you create a blacklist containing the poorly performing sellers and aim to undercut prices only of the competitors that are not part of the blacklist.
Apart from position 1 in the Buy Box, there are up to three other sellers that are often displayed on the product detail page. The Repricer is able to optimize for these positions as well. If you want to hold the third position permanently, for example, the SellerLogic solution adjusts the sales price accordingly.
Position Repricing Strategy: Example
Your alarm clock from the example above is performing well. So well, in fact, that Amazon becomes aware of the item and asks you if you would like to sell directly to Amazon. You don’t want to pass up this opportunity, but you’re aware that your work isn’t done yet.
Now that Amazon is selling the same alarm clock you are selling, they will inevitably win the Buy Box on it – it is their platform after all. What you can do in this scenario is set our Repricer to optimize for the second position. By doing so, you can keep Amazon’s offer in regard to the alarm clock stable and profit twice – by selling on Amazon and to Amazon.
Further Ways to Improve Your Repricing Strategy
Besides this, the SellerLogic Repricer also offers rule-based optimizations. This makes it 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 product group.
- Margin: If, on the other hand, you want to constantly achieve a certain margin of, for example, 15 percent, this is the strategy for you. This is how it works: purchase price + desired value or percentage + shipping costs + other fees + Amazon fee + VAT = sales price.
- Same Price: With this setting, sellers match their price to that of a direct competitor.
The dynamic strategies are more popular than the rule-based settings because no human could perform the data-intensive analysis faster or better than our solution. Still, there are cases where rigid rules are the wiser option, such as when results need to be as easy to calculate as possible. These strategies can be used effectively by Private Label sellers as well as Wholesale sellers.
Onboarding and Consultation at SellerLogic
Especially at the beginning, the optimization options and different strategies can be overwhelming for users. This is why we provide in-depth advice before and after the solution is activated.
Our onboarding is not only aimed at getting to know the user interface – it is equally important to us that the SellerLogic Repricer achieves the best results for you. That’s why we’re happy to set up the tool together with you and adjust all settings to your individual liking!
Click here if you want to find out more about our CSM team.
Our service is already included in the product price! There are no extra costs for setup or anything else. In order for you to get to know the Repricer, we also offer you the possibility of a non-binding 14-day trial period. This trial period will not be extended automatically, but only if you actively agree to it. Of course, you will still benefit from our onboarding!
Image credits in order of appearance: © Feodora – stock.adobe.com / © BillionPhotos.com – stock.adobe.com / © MicroOne – stock.adobe.com