6 myths about Amazon repricing debunked
Did you hear the one about Amazon repricing being a race to the bottom? Amazon Repricing is surrounded by myths, half-truths and dubious claims. Rest assured, with a reputable repricer you can price both up and down and set a minimum price.
In this blog, we explore all the popular Amazon Repricing myths.
1. It’s a race to the bottom
Repricers are not just a downward spiral. You can win sales based on a number of factors. Using repricing rules, you can price both up and down, based on the attributes of your competitors. For example, a seller with a better reputation could price above a seller of lower standing and still win the Buy Box.
Many factors influence who wins the Amazon Buy Box – a good repricer allows you to consider all of them. Some of the competitive factors beside price include:
- Fulfilled by Amazon/Self-fulfilled
- Stock level
- Seller rating
- Free shipping
2. Repricers reduce prices to a penny
Again, not true. With rules-based repricing, you set the lowest and highest price at which you’re willing to sell a particular product.
With advanced repricers, you can use your desired net-margin to set your price range. This ensures you always sell at a price that makes sense for your business.
3. You’ve no control over prices
You set the price range – the repricer only works between those conditions. Repricing rules let the seller decide the price, when to compete and when to exit the fight. Sellers understand their products and competitors better than anyone else. They combine this unique knowledge with the flexibility of rules to set out the best repricing strategy.
4. Repricers are too expensive
Not all repricers take a cut of you sales. With the right repricer, the benefits far outweigh the costs. The end goal is to achieve a healthy return on investment and make more profit. A good repricer is a solid investment because it creates more opportunities to sell and also lets you control your margin.
Pricing plans vary. To get started, chose a flexible, short-term plan and measure performance as you go. This limits the cost and means you only pay for the month you’re in.
5. Amazon Repricing can mean selling at a loss
With rules-based repricing a seller can specify how they wish to compete in a super-granular way. Selling at a loss can be avoided by setting your minimum and maximum price within your preferred margin. You set the rules, you define the margins and you choose the competitive scenarios.
6. Only suitable for big sellers
Repricers are suitable for every type of seller. There are entry level packages for those in slower moving markets with less competition, or advanced repricers with features like net-margin repricing that take account of all costs to ensure a target profit.
XSellco Price Manager combines the power of our smart algorithms with the flexibility to compete on your own terms. Winning the Amazon Buy Box depends on several factors; price, selling history, performance metrics and more.
Rules based repricing takes all these factors in account and lets you compete in granular way by reacting to all the competitive scenarios. Repricing rules help you maximize your profits and increase your share of the Amazon Buy Box.
XSellco Price Manager updates your prices in real-time, so you’re always competitive and can take full advantage of all sales opportunities.