Selling wholesale on Amazon and making a profit can be tough if you don’t nail your prices right. Even small price fluctuations can make or break your business. And so, let's focus on a topic that continuously keeps sellers on their toes – price wars.
Selling more competitively than the others is a surefire way to a higher Buy Box share and therefore more sales on Amazon. In fact, many static repricers work around this strategy, i.e., sell for cheaper than the competitors.
Unfortunately, this leads to resellers undercutting each other to the point where they’re willing to make a loss, just for the sake of making a sale and staying in the Buy Box.
The Buy Box is the white field in the top-right corner of the Amazon product pages, containing the orange-golden field labeled "Add to cart”.
The Buy Box is rotated between sellers that qualify for the Buy Box and are reasonably priced. As the Buy Box accounts for 83 percent of Amazon purchases, all Amazon sellers want a cut of the pie. Undoubtedly, to get the Buy Box, you need fantastic metrics, the most important one being the final price (product cost + shipping). The more competitive the price, the higher the chance of getting the Buy Box.
Therefore, it’s imperative that you must keep a close eye on your rivals and their pricing strategy if you want to compete with millions of sellers on Amazon. You must monitor their prices regularly and adjust yours to make sure you remain in contention for the Buy Box.
Now, you can do this manually (if you’re willing to put in the shift 24/7) or you can use a dynamic Amazon repricer. The latter is, of course, a more convenient and practical solution.
Unlike static repricers, dynamic repricers use the concept of dynamic pricing, aka demand pricing, to modify product prices in real-time. They take into account several factors such as supply and demand of a product and competitors’ rates to decide the best price point for your product. As a result, various pricing is applied to your items at different times of the day.
As mentioned above, a dynamic Amazon repricer monitors your rivals' pricing (and several other variables) round the clock, and changes your prices to boost sales and increase profit. Here is a more detailed explanation of what you get from a dynamic repricer.
1. You can pick your competitors to reprice against
A dynamic repricer enables you to adapt pricing methods in response to various competitive circumstances, allowing you to efficiently optimize prices and filter out competitors. This enables you to focus on the sellers whose prices you wish to compete with.
2. You protect your profit.
With a dynamic repricer, you don't have to worry about your pricing getting out of control, because the program will follow your pricing rule as long as you specify the bottom-line prices for your goods. To safeguard your profit, a decent repricer will increase your pricing after you receive the Buy Box.
3. You can make strategic pricing decisions.
Extracting data and information from your expanding orders can drain your energy. By using a dynamic repricer, you can view your sales performance and pricing history in a jiffy, and transform the raw data into actionable information to make better business decisions.
4. You can focus on what matters most.
You might be snowed under with additional duties as a seller when it comes to operating an Amazon shop besides repricing the items. While you're busy dealing with order concerns, repricers keep an eye on the price and can be programmed to reprice on a regular basis or on a certain day. Repricers can help you not only to automate your everyday activities and enhance your workplace efficiency, but they can also help you avoid human mistakes.
5. With a dynamic repricer, you can win the big game.
Finally, a performance-driven repricer can assist you in establishing a robust repricing strategy with the help of a customized algorithm. Choose the kind of competition you want and automatically detect and adapt to market price changes.
Repricing enables you to position your offers in the Amazon Buy Box, making them more attractive and visible for buyers. SellerLogic’s Repricer for Amazon works intelligently and fast.
With the dynamic price adjustment of SellerLogic you are always one step ahead of the competition. You win the Amazon Buy Box more often and increase your sales volume and turnover while maintaining the best price in a highly competitive context. The dynamic price adjustment of SellerLogic reacts quickly to price changes on Amazon and offers different strategies. What’s important is that it is secure, works reliably, and at fair conditions.
Additionally, the settings range from fully automatic optimization on the Buy Box with the highest price, to position-based optimization to achieve targeted awareness or simply to increase visibility.
Here are the main features of the SellerLogic repricer:
The repricing system works with a dynamic algorithm that optimizes your prices according to the price changes of your competitors. This is a key advantage compared to the optimization of inflexible rules.
The SellerLogic Repricer does not optimize for the lowest price, but for the optimal price. Say goodbye to price wars and costly price dumping.
With the SellerLogic monitoring system, you have the most important information at a glance. Quickly identify which products have the best prices and which can still be optimized.
Work profit-oriented from the first product. SellerLogic scales your sales processes and volumes indefinitely and flexibly.
Selling on Amazon is not rocket science but it becomes a whole lot harder if you're not using a dynamic repricer. The benefits of it speak volumes. So take into consideration all the factors that a good dynamic repricer should have and use it to take your selling game to the next level.
Discover opportunities. Maximize your sales. Grow your Amazon business!