Selling on Amazon can lead to a thriving business, but it can also become a nightmare filled with lost profit, stranded inventory and sleepless nights.
The key to turn your efforts into a successful story is understanding your competition and be constantly ahead of the game by chasing the coveted Buy Box; especially now that the new decade is approaching, and the market is getting more competitive by the day.
Monitoring other sellers’ prices and manually updating your own prices for your listings is an arduous and time-consuming task and it prevents you from spending precious time on other important aspects of your store management.
What is an Amazon repricing tool?
The name says it all: a repricer automatically adjusts your prices on Amazon based on the competitors and your repricing rules. There are many benefits of using an Amazon repricing tool, here are the three benefits that are worth mentioning:
- Save Time
Manually monitoring the prices of your competition and changing your prices becomes challenging when your business scales up. A repricer will alleviate this time-consuming task so you can use your precious time doing more quality operations, such as sourcing.
- Fast Speed
Manually repricing is not only tedious, but it also means that your prices are only updated when you have time. Sometimes, you will not even be able to reprice at all because of other tasks (or simply because you are on a well-deserved vacation). A Amazon repricing tool, on the other end, will reprice you instantly and constantly.
- Minimize Error
When you let an advanced software take care of your repricing, you are completely getting rid of the chances of human error. When you reprice manually, you are prone to make mistakes if you are tired, distracted or simply biased when making a pricing decision. A repricer will only work according to the repricing rule set by you, so the margin of error is minimal.
How does it work?
Repricers download your listing data automatically from Amazon using the API connection. After that, the software can receive and analyze the offers from all sellers on a listing to determine who to compete against. Every time there is a price (or position) change on a listing, the repricer will receive updated pricing information from Amazon and will decide if there is the need to change your price, based on your settings.
Is it really that simple? Well, yes, the software will do all the heavy lifting for you, but it is of vital importance to set your repricing rule correctly before letting the repricer work for you.
Min & Max prices
Every Amazon repricing tool needs you to choose Minimum and Maximum prices for your items in order to start repricing. What are they and how to calculate them?
Minimum price is a very important safety measure that prevents your price to go too low and sell for a loss. Advanced repricers allow you to calculate Min prices after all your costs are considered, including COG, Amazon Referral fees, FBA Fulfillment Fees, Closing Fee, and so on. This way, you can choose the lowest Profit or ROI you are willing to make when selling at your lowest price.
Maximum price is sometimes overlooked, but it is as important as Min price. Amazon has an internal algorithm that constantly monitors sellers’ prices and deactivates listings if it believes they are priced too high. This decision is based on other sellers’ prices, the Min and Max prices set on Seller Central and even prices on other online platforms (e.g. Walmart, eBay) for the same listing.
Setting reasonable Max prices is also important because repricers have settings that might take you to your Max price in certain scenarios, such as being the only seller on the listing. You definitely don’t want to be priced $500 on a pair of socks…
But how does an Amazon repricing tool decide the price for your listings? Technically, it is you who decides by setting your preferred repricing rules. A rule is a series of parameters that the system will apply to every repricing scenario and it is usually based on your competitors. For example, you can decide to compete with the offer winning the Buy Box or with the lowest offer. You can decide to exclude certain fulfillment types or sellers with low store metrics. Once a target is found, the tool can match their price, undercut it or add to it.
Most repricers offer default rules but also allow you to create a fully customized rule.
Which repricer should you use?
When it comes to choosing the best repricer, there is no definite answer because every business has its own needs. However, it is important to choose a repricer that has been recognized by Amazon and it is featured in the Amazon Service Provider Network or the official Amazon Marketplace Appstore.
BQool’s Repricing Central is fully recognized and gives you full flexibility to control your settings while eliminating the hassle of manually repricing your items.
It also offers 5-min repricing speed, rules with a high level of customization, and an advanced Profit Calculator. You can sign up and try BQool Amazon repricing tool for a 14–day Free Trial.