AI is a trendy topic that everyone is talking about, and it is already widely adopted by businesses to achieve a better result with less work involved. While many Amazon third-party software solutions use AI technology for their products to attract more users, we will debunk the myth of AI and introduce how to implement machine learning technology in Amazon repricing to benefit your business. Let’s read on!
What is AI?
Artificial intelligence (AI) is usually defined as the simulation of human intelligence in machines capable of performing tasks like humans. The term is widely applied to any machine that has the ability to rationalize and take actions to achieve a specific goal through machine learning and deep learning.
AI applications aim to solve some problems or goals such as reasoning, learning, and problem-solving. The computer programs can automatically adapt and learn from data to make the best decision or prediction.
Artificial intelligence is generally divided into two categories:
Narrow AI: This kind of artificial intelligence is also referred to as “Weak AI” because it operates under a narrow set of constraints and limitations. Narrow AI is often focused on performing a single task within a narrow range of abilities but very intelligent at completing the specific task. A few examples of Narrow AI include facial recognition, speech recognition/voice assistants, driving a car, or searching the internet.
Artificial General Intelligence: AGI is also referred to as “Strong AI,” which is the kind of artificial intelligence that mimics or replicates human intelligence and/or behaviors like the robots we see in the movies. AGI is a machine given the ability to think, understand and act like a human being to apply its intelligence to solve any problem.
What is Machine Learning?
Machine learning is a subset of AI and where a computer system learns how to perform a task. Instead of being programmed, machine learning feeds these AI systems a large volume of data to learn how to get progressively better at a task. For the best results from the designated task, the quality and size of data determine how complete and accurate the system performs. For example, AI in email marketing can increase open and click rates because it can generate subject lines and find the optimal send time through the data you use to teach it. The data should include more than just the email open volume and email click volume, but other factors such as what kind of content and images are going to be most effective in drafting your emails. Furthermore, AI-powered deep learning technology can email individual recipients on your list at the time they’re most likely to open it based on their demographics and previous interactions.
How Does AI Work in an Amazon Repricer?
Amazon repricer with AI repricing can help boost margins and win the Buy Box without undercutting your price. AI collects information, such as your competitor’s pricing and inventory, purchase histories, product preferences to product demand, and anything closely related to the pricing. And these factors are taken into account to predict the probability in your competition. An AI repricer will think like a human being to correspond best practices for each listing, adjusting the price to maximize the sales and revenue while remaining in the Buy Box.
How to Implement AI in an Amazon Repricing
- Maximize your sales volume
Your goal is to sell your stock as much as possible, so you need to win the Buy Box in a short time and remain Buy Box eligible as long as possible. AI repricing will find your competitor and reprice your listing into the Buy Box. When this happens, the repricer will price up and down in the price range that is acceptable for the Buy Box in order to maximize sales, while also maximizing margins.
- Match the Buy Box price
Price is one of the critical factors to win a share of Amazon’s Buy Box, but perhaps you are not interested in cutting your price to the bottom for winning the Buy Box. Therefore, AI repricing will match the Buy Box price and incrementally raise your Buy Box prices for profits, ultimately resulting in a balance of Buy Box share and profit margin for each individual product.
- Maximize your profits
Your priority as a seller is to maximize profits before winning the Buy Box. An AI repricing can detect the highest historical Buy Box price and incrementally lower your price till you win the Buy Box. This method is to aim to secure your profit.
How Will AI Repricer Reshape Your Amazon Business for the Better?
BQool will be providing an AI solution for its Amazon repricer soon, and it will include all the above-mentioned examples. The biggest benefit of using an AI repricer is that it can find the best repricing strategy for your listings to win the Buy Box and maximize your sales, so you no longer need to sacrifice your profit margins. Meanwhile, we also keep the rule-based repricing methods that you can choose to achieve your desired results in some situations.
Can’t wait to try BQool’s AI Repricer? Sign up for a 14–day free trial now, and you will be the first one to know when it’s released.