Editor’s Note: This is a guest post by our friends from GoAura.com.
Amazon repricing can be described as the strategic and automated management of pricing for your Amazon listings. A repricer tool connects to your Seller Central account and runs around the clock – even while you sleep.
Once enabled, a repricer will continuously analyze your listings’ prices and competitors’ price movements, to then automatically adjust your prices to stay competitive.
By keeping constant control over your prices, you are able to win (and keep!) the Buy Box for your listings and supercharge your sales.
How Can Repricing Help My Amazon Business Grow?
The universal key to getting the most sales on Amazon is through one simple method: winning the Buy Box. To ensure sales, it’s vital to maximize the time a product is in the Buy Box as 82% of sales come through it.
By allowing the entire task of price management to be automated, you create more time to focus on what’s most important – running and growing your business.
What Is the Buy Box and How Does It Help Me?
Most customers on Amazon have no idea whether they are buying directly from Amazon or a third party Seller. Amazon does a great job keeping this under wraps by utilizing the Buy Box feature.
The Buy Box is a space where customers can purchase items that they’ve expressed interest in with one click. The Buy Box is designed to reduce decision fatigue and speed up the purchase cycle for customers.
It’s prime real estate that third party sellers should try to control. Since only one seller can be in the Buy Box at a given time, sellers are left to fight for the opportunity to control the Buy Box and increase sales.
In other words, if you want to increase your sales, start by increasing your Buy Box percentage. Read more on how to “Own the Buy Box.“
How Can Amazon Repricing Help Win the Buy Box?
You may ask, ‘How do I win the Buy Box?’
Well, the answer isn’t straightforward. Officially, Amazon is pretty hush-hush when it comes to their criteria for winning the Buy Box. However, through simple observation and trial-and-error, Buy Box winners tend to have a few things in common:
- The Lowest Price: The Buy Box’s greatest “weighted” factor is the price. Either matching the lowest offer on an Amazon listing or pricing just beneath it will give you the biggest advantage to winning the Buy Box.
- Fast Shipping Times: As a close second, your handling and shipping times are a factor for winning the Buy Box. Amazon prioritizes offers with the ability to ship fast – primarily through their Fullfillment by Amazon service – as the most Buy Box-worthy, specifically with Prime shoppers in mind.
- High Feedback Rating: Holding all else equal, the Buy Box will generally favor the seller with the highest average 12-month feedback rating, with the number of ratings also a factor.
- New Condition: All items eligible for the Amazon Buy Box must be in new condition. The used item won’t be eligible for the default Buy Box, though may appear in the Buy Used Box.
- Professional Seller Account: While this should be number one, Amazon requires sellers to have a Professional Seller Account ($39.99/month) to be eligible for the Buy Box.
While a repricer won’t directly benefit shipping times and your account’s feedback rating, it can keep your prices ahead of the competition, and the lowest across your listings at all times.
Which Repricer is Best for Me?
Narrowing down your options top things to consider when deciding which Amazon Repricer is best for you:
The best repricers operate in real-time. The time it takes for a repricer to identify, react, and respond to a price change must be minimal. Any delays open the chance for a competitor to reprice against you, and cost you revenue – and ultimately, profits.
An Amazon repricer is worthless if it is fast, but cannot be strategically built to fit your business’s needs and goals. The best repricers allow for granular, strategic control of your listings’ prices. By using tailored pricing strategies, a repricer will work fully for you while following specific parameters – to chase and win the Buy Box strategically.
The ability to “Set it and forget it” is invaluable, especially with repricing on Amazon. Choose a repricer that will automate as much of the manual work as possible. Any time freed by an Amazon repricer is more time than you can spend sourcing inventory, which a repricer can then maximize your ROI on.
At the end of the day, the cost is going to be one of the biggest factors for Amazon sellers when choosing a repricer. While some Amazon repricers’ costs increase by the number of listings, it’s best to find one with a fixed pricing structure. This way, you can continue to grow your Amazon business without incurring costs as a result.
In the world of Amazon repricers, options range far and wide. Making an informed decision isn’t easy but repricing tools can help you optimize your Amazon business.
A repricer allows you to strategically position your listings to target the Buy Box, which can position you to win 80% of sales for that listing. The peace of mind added knowing each of your listings is on full autopilot makes repricers valuable for most sellers. The extra capacity to further grow your business is invaluable, on top of the extra revenue gained from using a repricer.
Once fully deployed, the right Amazon repricer will increase your chances of controlling the Buy Box and provide a solid sales boost for your business.