Repricing has quickly become a popular trend among the various sellers on Amazon. Did you know that through Amazon repricing tools, sellers can reprice their items several times in a day?
Sellers who have resorted to repricing techniques have managed to create an advantage over other sellers with static prices. It goes without saying that clients will always look to buy items on a cheap, meaning getting yourself an Amazon repricing tool might help you become more competitive.
What is an Amazon Repricer?
Amazon repricing tools are designed to help you adjust the prices of your various products automatically based on the parameters, rules, or instructions you set. A repricing tool helps to keep your product prices fully optimized and highly competitive with other market prices.
While you can adjust your Amazon prices manually, using automated tools will help ensure that your prices are adjusted according to market trends, meaning your competitors will never gain an advantage by lowering their prices while yours are still sky-high.
An Amazon repricing tool will analyze the prices set by your competitors and proceed to reprice your products according to the prevailing market prices. Here’s the best part about amazon repricers—you can even set a minimum price if you don’t want your product price to go below a certain margin.
As long as you set up your repricing software to meet your various pricing requirements, the software will do the rest and ensure that your listings are priced competitively to boost your sales.
How Does an Amazon Repricer Work?
An Amazon repricer functions in a fairly straightforward manner. Once the price of your listed product changes on Amazon, the repricing software will receive the updated information and proceed to calculate the new prices and margins based on your set preferences.
After the software calculates the prices and comes up with your ideal pricing, it will proceed to send a request to Amazon, which in turn will update the new prices on your listings.
Point to note, though, the efficiency of your repricing software is fully dependent on the pricing parameters you set. Once you set your preferred margins and prices, your software will update your prices immediately if your competitors make adjustments to their product prices.
Why Should You Use an Amazon Repricer?
Selling on Amazon is not easy. With thousands of other merchants looking to sell products similar to yours, it can take a while before converting prospects into sales. Since most of the products sold are usually from the same manufacturer, your best strategy to make sales is solely dependent on your pricing strategy.
Of course, your price needs to be low enough to attract clients but still high enough to make you profit.
Although you can monitor and adjust prices manually, taking such an approach can prove challenging, especially if you sell several products on Amazon. With Amazon repricing software, you will be able to capitalize on price changes provided they are within your set perimeters.
Amazon repricing software saves you time as you don’t have to sit next to your computer monitoring prices all day. In addition to reducing time wastage, repricing tools also increase your chances of making sales as they adjust your prices to satisfy market trends.
If a competitor lowers his or her price, your software will make the necessary updates for you.
What Are the Best Features in an Amazon Repricer?
While the best features for you are going to depend on your needs, there are a few things you want to keep in mind when choosing an Amazon repricer.
Types of Repricing Tools
There are three main types of repricing tools, which include manual repricing tools, rule-based repricing tools, and algorithm-based repricing tools.
Manual repricing tools allow sellers to set and alter Amazon products manually. While using manual tools will increase your overall control on prices, it can be energy and time-consuming since you will have to check the prices of your competitors throughout the day. Manual tools are appropriate if you are dealing with a limited level of Amazon inventory.
Rule-based repricing software relies on you to set the margins. That is, you will be in charge of setting maximum and minimum prices. The disadvantage of using rule-based repricing tools is that they can be time-consuming and even challenging for first-timers. Such tools are appropriate for low-profit products like films or books.
Algorithm-based repricing tools use computer algorithms to determine the best prices according to prevailing market conditions. Algorithm repricing software gives you a great balance between price and profit margins, ensuring that you keep up with the prices set by your competitors. Point to note, though, algorithm repricing tools are more expensive than the other tools due to their accuracy.
Amazon repricing tools have different rates depending on usability and efficiency. You will need to check on the cost of some of your preferred tools before settling on a particular option. Some repricing tools will cost you an average of $25 a month, while others will require you to part with as much as $200, depending on the type of use.
When selecting an Amazon repricing tool, it is advisable to go for products that give you a free trial. A free trial will help prevent you from making ill-advised purchases or buying products that don’t meet your needs. Be sure to check on whether free trials are offered and the duration of the trials. We recommend trying out several free trials before making a decision on your preferred repricing tool.
Simple Amazon repricing tools function using algorithms to decide the most competitive and profitable prices. However, you can also select repricing tools with more advanced features that allow you to set your own prices. If you want to increase your sales margin on Amazon, consider going for repricing tools that also compete for both the second and third lowest prices.
If you have several competitors and want to stand out, then you should consider a tool that provides several competitor filtering options. For instance, if you are a large-scale seller on Amazon, you will need a repricing tool that can provide seller rating, dispatch time, item condition, and seller IDs information to give you an advantage.
Things to Consider When Buying an Amazon Repricer
The importance of a good reporting functionality for an Amazon repricer can’t be overstated. To make sales on Amazon, you will need quick access to useful information like competition history per product, price changes that occur daily, weekly, and monthly, and the pricing history of the listed products. Such data will help you understand how to tweak your repricing strategy and get the desired results.
To retain the buy box and attract maximum clients, you will need a superfast repricing tool. Repricing tools that respond quickly to market trends and price shifts are your best bet for beating your competitors.
Regardless of whether you are experienced in using repricing software, or it is your first time using the tools, it is advisable to settle for a system that is easy to set up. That is, will the system allow you to make bulk changes? Will it allow for quick editing? Can you filter items with ease? All these are important features that you should look for in an Amazon repricer.
The repricing software you acquire must function well with your other software and existing systems. Check on factors like compatibility with your operating system and web browser. You should also consider whether the repricing software will integrate smoothly with other systems like inventory management and monitoring software.
Check on the usability of the repricing system, as well. That is, whether it can be used on other competing sales channels like the Walmart Marketplace.
It is advisable to go for repricing systems that are data-driven. Basic, low-cost tools will only collect pricing details from your competitors. Advanced tools, on the other hand, will gather valuable information on handling time, offers, discounts, shipping price, and product price as well. We recommend settling for data-driven repricing software as they will always keep you several miles ahead of your competitors.
Although most amazon repricing tools are plug-and-play software, going for systems with adequate customer support is advisable, especially if it is your first time using Amazon repricing tools. Of course, it will cost you extra to purchase repricing software that has support functionality, but the benefits will overshadow the costs once you start to understand the proper use of the system.
Do you really need an Amazon repricer tool? If you sell on Amazon and think you can increase your profit margins, then yes, we recommend getting a repricing tool. Repricing tools increase your pricing accuracy, which, in turn, helps your products stand out to buyers due to their reasonable purchase prices.
With a good repricing tool, your chance of winning the Amazon buy box increases exponentially. The pricing tools will help you beat your rivals to online shoppers, primarily due to the strategic and highly competitive prices set by the system.