Many sellers run their entire eCommerce businesses via Amazon. But although it’s an excellent marketplace to get your products in front of millions of shoppers, it’s also competitive.
Even if you have a great product to sell, simply listing it on Amazon and hoping for the best isn’t going to cut it. You need to make your product get ahead of the competition.
There are many ways to do this, but one of the most effective options available to you is repricing.
In this guide, we look at exactly why you should use an automatic repricer to sell on Amazon.
- Repricing is a strategy most Amazon sellers use, and automated repricers make the whole process quicker and easier.
- There are several benefits of using a repricer, including winning the Buy Box more frequently, boosting profits, saving time, and saving money.
- Get more sales and boost profits by choosing an Amazon repricing tool that automates the process.
What Is an Automated Repricer?
Repricing is something you may already be familiar with. If you sell anything on Amazon and have changed the price of your listing, you already know what repricing is.
You may have repriced your listing to make it less expensive than the competition, or you may have realized that your main competitor was out of stock and put up the price instead.
But that’s just manual repricing, which is incredibly time-consuming and resource intensive.
Automated repricing makes use of third-party repricing software like Repricer.
You set it up, create some rules around the highest and lowest product prices you’re willing to go, decide on a product pricing strategy, and let it get on with the job.
It works automatically, saving you countless hours and making your life a lot easier.
Let’s take a closer look at the main reasons why you should use a repricer to sell on Amazon.
Related: 7 Biggest Benefits of Using an Amazon Repricer
Win the Buy Box
There’s one primary reason to use a repricer that beats the others: Winning the Buy Box.
The Buy Box is the place where the vast majority of sales are made in the Amazon marketplace.
This makes sense. After all, you’re competing with many other sellers who are all selling the same item, and there’s only one Buy Box. Buyers will nearly always go straight to the seller who wins this coveted position because there’s less friction.
The alternative is checking out the other sellers and picking one out from the list, and most buyers simply are not going to do that.
But how can a repricer help you win the Buy Box?
The Buy Box Algorithm
It all comes down to how the algorithm factors in the price of your product.
No one knows for sure what goes into the Buy Box algorithm, which decides which product wins it. But a competitive price is definitely a major factor.
Other factors include seller reputation, availability of the product, reviews, and more, but price is right up there.
That’s because Amazon wants its customers to get great value when they shop at Amazon so they will return again.
If there are several sellers with great feedback, a high-quality product, and optimized listings, but one has a lower price, there’s a good chance that it will win the Buy Box.
Constant Price Changes
The thing about the Buy Box is that the winner is constantly changing.
It’s not a case of winning the Buy Box and then sitting back and relaxing. Your competitors also want to win it.
This is where automated repricing comes in so handy.
Let’s say your competitor has the Buy Box but you have set up your repricing tool to reprice lower. It does this automatically.
Suddenly, your product listing has the most competitive pricing, and you win the Buy Box.
This could all be happening while you’re sleeping, and you’ll get the additional sales without doing a thing.
Boost Profits While You Have the Buy Box
So far, we’ve looked at lowering your price to win the Buy Box. But this doesn’t mean it’s always a race to the bottom. That wouldn’t help any sellers.
Repricers can also increase the price of your listings when appropriate to increase your profit margins.
Let’s say you win the Buy Box. Congratulations! Now you’re in a great position to make more sales—until the next seller wins it.
Don’t rest on your laurels. Sure, you’ll get more sales while you have the Buy Box, but this is a time to boost your profits if you play it right.
When to Increase Prices
Repricer is one repricing tool that allows you to get the most out of your position when you win the Buy Box.
It has a feature where you can set it to increase the price of your product listing when you win the Buy Box.
Why would you want to do this?
Because you’re in the prime position. More people are seeing your product, and demand, therefore, is increased.
You could get more sales even if your product price is higher, as long as you still have the Buy Box.
Repricer makes small price adjustments to your listing so you can increase your profit margins while you have the Buy Box.
At a certain point, you might lose your position as the Buy Box winner. But you may have made more profits.
And now you have useful data for the next time you win the Buy Box, so you can adjust your strategy accordingly.
Related: How to Increase Sales When You Win the Amazon Buy Box
Choose the Best Products to Sell on Amazon
Most Amazon sellers know how much of their success is tied to choosing the right product in the first place.
Choose a bad product, and no amount of optimizing your listings and increasing your marketing budget will help.
Repricers can also help here, as long as you choose the right product.
Repricer, for example, has an Amazon Buy Box Predictor. This uses a wealth of data to compare your product idea with others and suggest whether it has a good chance of winning the Buy Box.
Because the Buy Box is so important for sellers, this could be a very useful feature, saving a lot of wasted time and effort down the line by making the right choice at the beginning.
React Rapidly to Your Competitors
It’s all about acting fast if you want to do well on Amazon. You have a lot of competitors, and you want to make sure you’re beating them on price when you can.
But repricing manually is a slow business.
First, you have to keep a close eye on what your competitors are doing. Next, you have to react to their actions. If a competitor lowers the price of their listing, you need to act fast before missing out on sales.
But this all takes a lot of time.
A repricer does everything for you on autopilot. Once you have set up your rules based on your repricing strategy, you can simply let it get on with the job.
Even if you have 10 competitors, and they’re constantly changing their prices, you don’t have to keep an eye on them. Just let your repricer do the work for you.
You’ll react much faster as a result, and you won’t give your competitors an easy ride. This will lead to more sales and more profits compared to doing the work yourself.
Save Hours of Time
With your repricer doing all the work for you, you’ll find you have hours of extra time left over. As any Amazon seller knows, there’s always something to be doing:
- Working on optimizing your listings.
- Setting up or managing new advertising campaigns.
- Responding to customer questions.
- Sourcing new products.
Don’t spend time on something you could be automating. There are some jobs that can not only be automated but that work better without humans getting involved.
Repricing is one of them.
It works based on rules rather than emotions, and it will do a better job at the same time as freeing up hours of your time.
Manage Multiple Marketplaces
Many Amazon sellers don’t just sell on Amazon. You may also have a Shopify store or sell the same products on eBay.
That’s a smart idea because many people have their favorite websites where they like to buy products, and it’s an easy way to get your products in front of more shoppers.
Choose your repricing tool carefully and you may be able to manage all your repricing activity from the same place on different marketplaces.
Repricer, for example, can be used for both your Amazon and eBay products. It’s a powerful tool, and you can manage everything from one place so there’s no need to invest in two separate repricing tools.
Don’t Miss Out on the Benefits of Using a Repricer
If you’re just getting started on building your Amazon business, you may not have done much repricing yet, but you will soon—and you’ll also realize just how much work it can be.
Amazon repricing tools can save you hours of time. You can reprice your product listings more quickly and with greater accuracy than you would do on your own and make more sales and profits by winning the Buy Box more frequently.
Don’t miss out on the benefits of using an automated repricer. Get started today by signing up for Repricer. Try it for free for 14 days, and never go back to repricing manually again.