Reasons Why You Should Be Investing in an Amazon Repricing Software
When it comes to Amazon and other E-commerce sites, brands have the same objective, and it is to generate sales as many as possible. However, the competition between brands is getting fiercer every day and also not to mention the shoppers who favor brands that offer a good price. With this, brands have to reconsider their pricing strategies on how they’ll be able to cope up with the competition without sacrificing too much of their profit margin.
Pricing is an essential element that can influence every consumer’s buying decisions. Moreover, Amazon’s algorithm is quite complicated since product listings and prices are always in a state of flux. That is why it is essential to learn and understand various pricing strategies.
What is amazon repricing, and how does it help sellers?
Every day, it is estimated that more than 2.5 million price changes happen on Amazon, which means every individual listing change their price every ten minutes. Seller does this kind of repricing strategy to keep their prices competitive and attract more sales. Furthermore, the main objective of price tweaking is to win Amazon’s eye-catching “Buy Box.” while it still unknown how Amazon decides which product will get the Buy Box, but price competitiveness is one vital factor in getting it. Winning the Buy Box is quite hard and challenging; however, the payoff can be huge, so sellers constantly change their price in an attempt to win it
What is an Amazon repricing software?
While keeping your pricing to be competitive at all times is vital to your success, it can also be a daunting task. Manually scanning your competitors listing could eat a significant amount of your time and not to mention also the time you have to spend changing your price per listing manually. Also, manual repricing has a high possibility of making mistakes, which can put you to unexpected losses. After all, making a human error is highly possible.
On the other hand, using amazon repricing software can make the repricing process considerably easier. And below are some of its benefits.
- It saves you time
The best way of putting the right price in every of your product listing is by checking out the current market, especially those sellers that are selling the same product. While pricing your brand low might be your first choice, it might devalue your brand in the long run and, worse, generate only a little profit. Moreover, it doesn’t also give you a guarantee of owning the Buy Box. Pricing too high, on the other hand, will only give your competitors more advantages. That process alone requires a considerable amount of time. And as we have mentioned earlier, Amazon pricing is constantly changing, so if you keep on watching your competitor’s price all day long (which is also quite impossible) to adjust yours, it would only get you nothing.
By using amazon repricing software, you don’t have to worry about the never-ending process of repricing all your listings. Once you have fed up your repricing software the strategies you have in mind, it will do all the hard work for you. Even if there’s a constant price change in the market, the automation tool can easily cope up on its own, so you can have more time doing other aspects of your business to ensure success.
- Higher chance of winning the Buy Box
As we have mentioned earlier, almost every seller on the Amazon wants to own the Buy Box feature. After all, according to Amazon, 80% of the sale comes from Buy Box, so it’s imperative that you should compete for it as well. By using repricing software, it allows you to utilize the pricing process, also known price optimization, so you can still obtain the maximum profit margin while at the same time keeping yourself ahead of your competition.
- Increase your ranking
Contrary to popular belief, it is by offering a competitive price that will make you stay on top of the game, and it does not always have the lowest price. By offering just the right price using repricing software, it makes your listings more credible than those who keep their low. With this, more and more people will undoubtedly buy your products, thus increasing your chance of getting a better ranking. Moreover, once your brand built up a reputation, then you can set another pricing strategy like setting up a higher price margin.
- Reduce human error
As we have mentioned earlier, humans are highly vulnerable to committing mistakes. And when it comes to Amazon, committing simple mistakes like wrong decimal placing or putting an extra numeral can often lead to huge profit loss. The automated repricing software will handle all the number-crunching once you set it up. All you have to do is to feed it up with the minimum prices of each SKU you’d like to list. After setting up the minimum prices properly, the software will do the rest of the complex calculations, and it will recompute automatically according to the parameter that you control.
- Lessen opportunity cost
Sadly, most Amason sellers still continue doing manual reprice even if they know that having automated repricing provides a considerable advantage. Opportunity cost is by letting an opportunity of potential gain to slip away even if it’s already proven effective. While an Amazon repricing software does the same as the manual repricing, however, it works way faster and even better. Sellers who are already using repricing software can now spend more time on other high ROI tasks that are impossible to automate, like product research, smart sourcing, etc.
- Achieve work-life balance
Sellers who continue to ignore the many benefits of using repricing software are still struggling not only in keeping their prices competitive at all times but as well as missing out on having a joyful life. Sellers who have embraced the luxuries that amazon repricing software offers have not just doubled their sales in a matter of months but as well enabling them to achieve work-life balance.
It’s clear that using repricing software, and it can open up lots of opportunities and help you grow your Amazon business. Better leave the daunting task of manual repricing and embrace the power of automation.
Patrick Panuncillon is an SEO specialist and a recognized digital marketing expert. Thanks to his strategic marketing techniques, he was able to help various ecommerce companies to maximize their sales. During his free time, you can find him hiking to the forests or relaxing on the beach.