To remain competitive in the Amazon marketplace, timing your pricing changes perfectly and ensuring that they make financial sense are the keys to success. Every single second, prices on Amazon are changing by sometimes only a few cents for each seller to gain even the slightest edge over competing SKUs. Some choose to adjust their prices manually while others would rather have a software tool do it all automatically based on a set of established rules.
Which is better for your store? Let’s take a look at the two along with the pros and cons of each.
Manual Repricing Within an Automated Repricer
To manually adjust the price of a single item on Amazon, you have to go through about eight steps. If you only have a couple of items in your store, this might not be an issue but once your store expands, going through all 8 of these steps can become tedious very fast. When manually repricing items, keep in mind that the total price, including shipping, is what gets sent to Amazon.
Within your chosen repricer, you can manually adjust the price of an individual listing by opening the listing box, entering the manual price you want to list the item at and then saving it.
If you want to edit the price of items in bulk to save time, you just need to go to the Uploads page within the repricer, select “Set or Update Manual Prices” template and then enter in your prices and upload the .csv file.
The Problems with Manual Repricing
There are a few drawbacks of manual repricing. The most significant issue that sellers run into is human error. When having to reprice dozens of listings, the possibility of making a minor typo is extremely high. A decimal misplaced on a $100.00 item could turn it into a $10.00 item, and you’ll be losing profit quickly.
Secondly, machines are just faster than humans. Especially if competing with large sellers, there is no way that you can manually keep up with their team of robots handling their pricing. Even if you planted yourself in front of the computer all day and adjusted your prices every 15 minutes, you would still need to check across Amazon for your competitor’s prices. It simply isn’t a sustainable strategy.
The Manual/Automatic Hybrid
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.
All of the most successful stores on Amazon know that adjusting the prices of items is a necessity. If you don’t, other stores selling similar SKUs will be able to jump in and undercut your prices. An automated repricer will allow your store to remain competitive at all hours of the day while also limiting your prices only to the rules that you set. .