There’s a sweet spot you should be hitting in your repricing strategy to optimize your sales and profit. It involves just two objectives: to maximize your profit margin, but still match your competitors’ prices.
But how important is it to do this at an ongoing basis? And for all of your listings?
Adapting to Market Changes
Competition between sellers generates price fluctuations, around the clock. As do fluxes in total sales, supply in the marketplace, and the new sellers that are entering into the scene. In other words, any number of changes to the market environment can affect market price.
Many newbie sellers experience an initial honeymoon period of peaked sales, and then report performance crashing and flattening out all of a sudden. This can be pretty unnerving, given that market forces are often beyond our control.
There are a number of reasons that can contribute to this abrupt decline in sales. But updated repricing is one of the most practical ways to defend your edge in the Amazon marketplace. Keeping current with the market prices will grant you more visibility within your Amazon listings — and even more of the customer traffic — that the most competitive sellers get to enjoy.
Ultimately, sharp and informed repricing strategies can win you the prized spot in the Amazon Buy Box. What is the Buy Box? Only the most coveted position on every product page. It exclusively features just one seller’s item that can be purchased with one click (for most categories). Greatest visibility, and the most direct access to customers.
Because of these extreme benefits of the Buy Box, repricing remains an essential practice. There are several factors that Amazon seems to consider to determine the Buy Box winner, but serious contenders must absolutely stand out with competitive, updated prices.
Repricing is both your defense and offense in Amazon’s ever-competitive market– not managing your prices is just not an option. To succeed as a sustainable business on Amazon, it is essential to have the ideal pricing solution to manage your product prices in a timely, accurate manner.