Even though prices are constantly changing, making sure your price is right is one of the most important aspects of selling products on Amazon. With that being said, there are two ways you can go about your business.
1. Manually adjust prices as they increase and decrease throughout the calendar year.
2. Get started with an easy-to-use and automated repricing software.
If you are a casual seller and you don’t mind dedicating hours of your work week checking in on your competition and manually updating the prices of your SKUs to be comparable, by all means, keep going at it by manually adjusting your prices.
But, if you are a serious seller and are hoping to really move some product, then I highly recommend you transition to an automated repricing software that does all of the hard work for you. Keeping your prices automatically competitive gives you time to focus on other aspects of your business. I guarantee you this will be a smart move for your business.
1. Maximize your time
Most individuals switch from manual to automatic repricing to save on time. Time is a valuable asset, both in business and in life. Automated repricing frees up time in your busy schedule. Whether that was four hours or thirty minutes, you’re now free to focus on other aspects of your business, take a walk outside, or catch up with family and friends.
2. Increase your profits
Finding the right repricing solution will give you that competitive edge. One of the main reason most people avoid repricing software is they think they’ll have to keep lowering their prices. How then would they make a profit? That’s not the case. When the circumstances are right (i.e. when your competitors sell out!), an excellent repricer should boost your profits by automatically raising your prices and capitalizing on good deals out there.
3. Understand your cost
Before you begin using a repricing software, you should understand all of your costs. When you get started and set up, you will be required to enter a minimum price for your listings. Consider ALL of your costs and note the minimum price (including shipping) you’re prepared to sell your product at. Make sure that you are making a profit. You’re not in business to give things away for free or at a significant loss to yourself.
Setting a maximum price, which should be realistic, is also an important factor for each of your listings. This max price will kick in only when certain scenarios are in effect. If your price is too high, you run the risk of being penalized by Amazon for pricing a product above the manufacturer’s suggested retail price (MSRP). Amazon will delist products that have max prices outside of what they consider to be a reasonable price.
4. Decide who your competitors are
Competing with other sellers is part of the game. Whether you’re hoping to beat out other sellers with a competitive edge on fulfillment, seller ratings, Buy Box Eligible status, or more, a good repricer is key in that scenario if you’re hoping to reach your own level of success. A good repricer will have competition settings which let you decide who you want to compete with and how.
For example, if you aren’t eager to engage in price wars/races to the bottom, you can easily avoid that. If you’re an FBA seller, you may want to exclude certain categories of sellers, such as those with poor metrics and those using Merchant Fulfilled Networks (MFN)..
5. Win the Buy Box more often.
With close to 90 percent of all sales on Amazon going through the Buy Box, every seller should be aiming to win a share. Many factors go into Amazon’s Buy Box algorithm, and it is not just the cost. Established sellers who are reliable and trustworthy have a really good chance of winning a spot in the much coveted Buy Box.