"World trade means competition from anywhere; advancing technology encourages cross-industry competition. Consequently, strategic planning must consider who our future competitors will be, not only who is here today.”

Do you agree with this quote by Eric Allison? We do, because competition is ubiquitous and especially fierce on Amazon. That’s why we will take a look at how you, as an Amazon seller, can boost your sales and stay competitive with repricing.

Repricing solutions are legal on Amazon and if you employ a good Amazon repricing tool, you'll always be one step ahead. Dynamic pricing on Amazon is a tried-and-true approach for building your e-commerce business since it simplifies the selling process and helps you receive good feedback from customers. As a result, you'll be able to win the Amazon Buy Box and develop your business even further.

Repricing on Amazon is now so much more than a trend; it's an essential part of doing business online. Let’s dive deeper into that.

So, What Exactly Is Repricing?

Amazon's pricing strategy is based on price optimization, which is the process of adjusting product prices to market conditions. The ultimate pricing of the competition's products, supply and demand of relevant products, the influence of trends on the marketplaces, and a variety of other factors are among these criteria.

Merchants can use various approaches when repricing on Amazon. Most professionals use an Amazon repricing tool to carry out time-consuming tasks, while others choose to do market research without the use of a software program and alter their prices manually.

Let’s Take a Deeper Look at the Repricing Options That Can Be Used on Amazon

Manual Repricing

This type of repricing requires you to employ no software at all for your Amazon pricing strategy. It entails independent monitoring of competitive pricing and market changes by sellers.

The key advantage of this is that you have complete control over your pricing. What are the drawbacks then? Repricing on Amazon without software, as you can expect, will eat up a lot of your time. If you want to stay up with other sellers who use automated repricing tools, you should also get one.

Static Repricing

Static repricing, also known as rule-based repricing, is an approach that involves using software to determine the price required to win the Buy Box and then automatically adjusting your product prices to that amount.

Static repricing on Amazon has the advantage of allowing you to win the Buy Box more frequently than before, allowing you to sell more things.

Furthermore, instead of spending many hours a day manually modifying your rates to stay up with the competition, you can allow the repricer to do it for you. In terms of expenses, Amazon provides a free repricing service to sellers.

Dynamic Repricing

When it comes to Amazon's dynamic pricing approach, there are several solutions available to assist your online business in growing. Dynamic repricing sets the price you need for the Buy Box in the same way that static repricing does. It then sets your pricing to that amount, progressively increasing them to the maximum amount you may charge without losing the Buy Box.

The benefit of this pricing method is that you are more likely to be in the Buy Box while selling at the highest feasible price. However, as some sellers point out, your pricing method is primarily software-driven and hence lacks "a human touch."

Repricing on Amazon does not always imply that the seller relinquishes control of the pricing strategy. You have the freedom to assess the market of your rivals' pricing as you see fit and then adjust the settings of the dynamic repricer in order.

This might potentially result in better outcomes. Most sellers, on the other hand, choose to depend entirely on their repricers since it is the most convenient approach, enabling them to focus on more essential problems.

Let’s Take a Look at How a Repricer Can Help You Boost Sales

You will get the bulk of the sales if you provide the best pricing on the market, resulting in a profit increase. Buyers are obviously more inclined to purchase things from you if you provide better prices.

If you're wondering how the repricer works, it's actually quite simple. It monitors the market in real-time, tracking any Amazon pricing changes or changes in rival structure on a certain product. It then modifies the user's pricing based on this mass of data - not according to the same set of criteria as static tools, but according to the market's requirements and the user's own market share.

The task of a rule-based repricer is completed if Amazon communicates back to the program that the user has won the Buy Box with a certain price. Dynamic pricing solutions, such as the SellerLogic Repricer, raise the user's product price until it reaches the optimal price, which is the highest feasible price at which the Buy Box can still be maintained.

How You Can Sell More With the SellerLogic Repricer

With the dynamic pricing software by SellerLogic, you can win the Amazon Buy Box more often, increase your sales volume and your turnover while maintaining the best price in a highly competitive context.

The dynamic price adjustment of SellerLogic reacts quickly to price changes on Amazon. The modular designed tool for Amazon price optimization offers different strategies. It is secure and works reliably. About 90% of all sales are made in the Amazon Buy Box which is why winning it for you is one of the main goals of our Repricer. Once this goal is achieved, the SellerLogic Repricer for Amazon automatically works toward the second goal of price optimization: setting the best price.

As soon as one of your items is in the Buy Box, SellerLogic optimizes the price of that item, enabling you to sell at the best – not the lowest – price. This goal is made achievable because our repricer is based on technology that is intelligent, algorithmic, and backed by BigData.

The SellerLogic Repricer for Amazon achieves both goals: entering the Buy Box and selling at the highest possible price. The maximum price in the Buy Box is the result of all optimizations.

What Makes SellerLogic’s Solution Better Than Ordinary Repricers?

Repricers for Amazon that are more traditional work with rule optimization. Consider the following scenario: other repricers attempt to induce sales by using fixed minimum pricing. The technique is straightforward: The lowest price is the winner.

The biggest downside of rule optimization is that it exposes you to a significant chance of losing money. The reason for this is that you put all your money on one card: the lowest price, winning the Buy Box with rule optimization involves a lot of chance. A trivial rule is always at a disadvantage when compared to a dynamic adjustment, hence this position is rarely retained for long.

For example, a trivial repricer may be given the following direction from the seller: "Our product should always be 5 cents lower than the lowest." In this situation, the Amazon seller's only guarantee is that he or she will enter the contest with the lowest price on Amazon and nothing else.

Other products' "sell at any cost" attitude, which simply optimizes based on the lowest price, provides you far fewer alternatives and freedom than the SellerLogic Repricing Solution. As a consequence, you'll be able to choose from a variety of automation degrees.

Conclusion

If you want to save time and boost your sales, you'll need to discover a repricing solution that works for you. Automated tools may be used in a variety of ways to make day-to-day business work easier.

However, every seller should consider their goals and if the tool can help to reach them. This should not be an issue with a little critical thinking, and you can use automation to make your life as an Amazon seller simpler.

About SellerLogic

SellerLogic is a Germany-based company specializing in the development of software solutions for Amazon sellers. Their current offer is comprised of two software solutions: The SellerLogic Repricer and Lost & Found. SellerLogic's Repricer optimizes product prices, enabling sellers to secure the Buy Box and increase their sales. The Lost & Found solution enables FBA sellers to claim reimbursements arising from FBA errors in Amazon warehouses. Moreover, SellerLogic's Customer Success Team provides guidance and consultation in regard to the communication with Amazon Seller Support.

Increase Your Margins With Repricing