Should I Use Repricing Software on Amazon?
Which sellers use repricing software on Amazon? You’re probably trying to figure out whether you should use it for your Amazon business, but everywhere you turn, mum’s the word.
As you can imagine, using software to automatically adjust pricing is a strategic advantage, and the more hipster it is, the more effective it would seem to be for in-the-know sellers. Finding the most effective repricer to compete in a particular market is even more hush hush. Consequently you won’t find a vast amount of literature on the web discussing specific users, but believe me when I say, repricing is high in demand and widely used, more than many sellers would care to divulge. In essence, sellers only tend to speak positively about repricers in secret. When it comes to making money, strategic tips are highly confidential.
Who it is NOT for:
1. Sellers of unique brands and products
2. Sellers of rare items and collectibles e.g. baseball cards, rare comic books
3. Sellers who sell Out of Stock (OOS) items
Who it is for:
1. Sellers who want to win the Buy Box
2. Sellers who want to win the More Buying Choices Box
3. Sellers who want to rank ahead of others in the top ten offerings list page
4. Sellers who sell general products or the same brand items as other sellers e.g. electronics
5. Sellers who sell hundreds to thousands of listings and don’t want to get bogged down with checking competitors’ prices
6. Sellers with stiff competition. Actually if you have even one competitor, repricing helps you win. If you have multiple, repricing is all the more beneficial
7. Sellers who focus on emerging and trending products e.g. clothing
8. Sellers who want to sell more during all hours of the day even while sleeping
What to keep in mind:
1. If you use repricing software on other sites as well as on Amazon, you must be sure that your price on Amazon is consistently lower for that product, or you run the risk of being cut off as stated in Amazon’s General Pricing Rule.
2. Sellers who dominate their market; if you already know you will reprice by filtering out thrift sellers and small players and you have no one left to compete with, then you have no reason to set your repricing software to a lower minimum. You should race to the top. (See number 3)
3. Sellers looking to race to the top or to compete for higher prices CAN set favorable minimums. Repricing is not only for lower price competition
4. If you are on product listings in which competitors regularly do not follow guidelines and conditions, such as used “Good” items being passed off as “Like New,” then you may end up selling better-conditioned products at a cheaper price than your competitors who invested less in worse-conditioned products. Always account for your profit margin
5. Repricers are not a one-size-fits-all tool. For any two kinds of products, there are many distinctive variations, factors, and exceptions to account for. A repricer is an exponentially more powerful tool if you know how you want to use it and set it up correctly.
What to do:
The reality is that repricers are programmed to aggressively pursue your end once you configure your margins and settings. In other words, repricers are not hesitant but take a hard-line approach and don’t hold back.
Keep in mind if you save your price list prior to repricing and you change your mind, you can start afresh and revert back to your old prices, allowing you to reconsider your pricing strategy. Therein lies the key. You MUST go into automated repricing with a pricing strategy. Once you know what you’re comfortable with, the repricing software will execute fabulously to meet your needs and to help you achieve greater success.
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