A lot of Amazon sellers are hesitant to use a repricer in their store because they’re worried about how it can affect their profits. There are many myths spread about repricers so today we’ll cover the top five myths and the truths behind them.
1. Repricers Take Away Seller Control
You might not be comfortable putting your Amazon business in the digital hands of an automated repricer. In reality, even the most automated repricing platforms require human control at some point along the way. Usually, when first setting up the program, you’ll need to manually set the item costs, upper and lower price limits, and pricing rules.
It’s much safer than you may think to use automated repricing tools as it saves you from potential human errors in pricing along with working around the clock to keep your listings competitive.
2. Only Sellers with Lots of SKUs Need Repricing Software
You may think that your store is way too small for repricing software to provide value. The truth is, the biggest value you can net from repricing tools is saved time. Every minute you spend tinkering with prices manually, even for just a few items, can add up over time.
With repricing tools, you’ll be able to get back those precious hours and use them more productively. Additionally, if you set the right repricing rules, you’ll be able to reprice at all hours even when you’re sleeping or away from your computer. If you master repricing tools early on, as your business expands you’ll be happy that you set up the tools early on.
3. You’ll Lose Money
There is some truth to this myth; if you don’t configure your repricing software correctly, your prices could plunge, ultimately costing your Amazon business revenue.
However, we’ve found that most sellers that manually reprice items end up losing money anyway, so why not give repricers a try? Repricing tools such will take your inventory cost, shipping, and Amazon fees and then calculate your absolute minimum selling price to profit on each item. Repricers will save you the potential headache of setting the price of $100 item for $1 due to human error and work to make your Amazon business more competitive.
4. Repricers Are Only for Lowering Prices
Many sellers have an irrational fear of repricing tools because they think that they only lower prices and slash profit margins. Repricers can actually raise prices if you set applicable rules, and raising your prices is very beneficial in certain situations.
For instance, if you wanted to make an extra 15% on each sale, you could set a rule to drop prices a few pennies and then raise them once the competitive landscape adapts. This is just one of many scenarios where a repricer tool used to boost pricing could come in handy. With modern repricing software, the possibilities are endless!.
5. Repricers Are the Cause of Penny Books
Penny books are caused by a multitude of factors the most significant being competition. If 100 sellers are all selling the same paperback, you can bet that a few will slash prices just to make sales. Some sellers even have massive warehouses to store these books which saves them costs of packaging and shipping, netting them a couple of cents profit per sale.
Others will use penny books just as a way to build their seller feedback and eating the small loss from the item as the cost of building brand awareness.
The point is, there will always be penny books, and repricing software isn’t the cause of the larger issue and should not be a reason to avoid repricer tools.