Because the Amazon marketplace is a digital world, just about everything is, or at least can be automated. When it comes to prices for your goods sold on Amazon, change is the only constant. And keeping up with those changes can be a real headache for business people like us.
Of course, if you’re new in the game, and you’re only selling a few items on Amazon, you can probably get away with managing your pricing strategies manually. But let’s face it; nobody wants to stay at that level forever. Your ultimate goal is, of course, to keep up-scaling your business in order to keep making more and more money. But, as your business grows, your ability to keep on top of pricing for each of your items will naturally decrease. It’s just more and more work added to your to-do list. For us, the point of no return was somewhere around the 50-item mark, but that might be a little different for your business. But you’ll know when you’ve hit the wall – when you just can’t handle manual pricing for any more products. That’s the point where you’ll have to start working with repricing software.
Most likely, as an online arbitrage re-seller, you’ve already experimented with automated repricers – of which there are many. There are a lot of names that get floated around and recommended. Here are a few of them: Inform, BQool, Go Aura, ChannelMAX, Repricer Express, and even Amazon has its own repricing software now. Truth be told, they’re all mostly the same. Their differences are primarily style and cost, although a few do offer some extra features that can be useful.
Basically, repricers exist with the purpose of helping you to materialize your pricing strategies instantly and automatically. You’re going to have to set up your repricer with input about your standards and expectations, and then let the software make changes for you. It can be scary to hand over control to what amounts to a robot. But, in the long run, you really won’t have much choice. That’s because Amazon is a robot too, and you need a robot to fight a robot. Of course, it’s how you set up your repricing software that determines the strategy that it will pursue for you.
So, with that in mind, we’re going to share with you three repricing strategies that your repricing software can help you to reach for.
Here are the three strategies we’ll cover:
- Get the Buy Box
- Match the Buy Box
- Raise the Buy Box
1. Get the Buy Box
For us, the most common strategy we apply for items is to get the buy box. As you probably know, the buy box is truly the prime real estate for sellers on Amazon. Whoever has the buy box is going to get the most sales. Your repricing software can help you to win the buy box by ensuring the price is within an optimal range. Of course, there are factors beyond pricing which will impact whether or not you win the buy box. So your repricer is no guarantee of success in this area. For this reason, we have a back-up strategy you can read about in number 2, below.
2. Match the Buy Box
As we mentioned in number 1, above, the buy box is the prime real estate. But having the right price won’t guarantee that you’ll win it. If, for whatever reason, you can’t get the buy box, you should try your best to be as close to it as possible. If your price is the same, then you’ll be a contender when the stock numbers shift in your favor. And buyers will already have accepted that the price you’re offering is fair and reasonable.
3. Raise the Buy Box
In some special circumstances, it can be a good idea to boost your profits by raising the price – even above the buy box. But this strategy has to be applied in a logical way. We use this approach with high-end products that are very popular, especially when competitors’ stocks are running low. Do you have an item that everybody wants, but that is becoming hard to find on Amazon? Then now might be a time to raise the price. If the circumstances are right, buyers will be willing to pay the higher price, especially if it’s the only way to get what they’re looking for.
So we have talked about three approaches to repricing your products that can be applied using repricing software. Next time, we’ll give you more information about how to be successful with these complicated software programs. So be sure to follow us for more!