Repricing strategies are vital to your successful online business. Getting a buy box is becoming tougher due to the arrival of new businessmen on amazon. So many sellers keep changing the prices of their products according to the marketplace to earn more product sales and reputation in the marketplace.
The process of undercutting other competitors in the marketplace is called “repricing”. It can be done through different software and manually.
Let’s take a look at the pros and cons of different repricing methods.
1. Amazon Repricing Tools:
You can find different repricing tools online. These tools can help you to compete with your competitors by automatically undercutting the competitors on similar listings. These tools allow you to set a minimum amount so that the apps do not offer products within the price that affect your profit percentage.
The repricing tools work in two different ways.
- Rule-based repricing
- Algorithmic repricing
Rule-based Repricing:
This repricing tool system works on the rules that are implemented by the seller. But this system can be time taking and the seller needs to spend most of the time setting the rules.
Algorithmic Repricing:
This is an advanced tool. It determines the best price of the amazon product with the best ROI. This system considers every factor that is useful to win a buy box that enables the retailer to see the return rates of the products.
Algorithmic repricing tools offer more benefits than rule-based repricing tools. But algorithmic repricing tools are more expensive as these tools offer more features and are mostly used by amazon’s professional sellers that sell plenty of items. You should also use these repricing tools if you are a newcomer and do not know about repricing rules.
Pros of using amazon repricing tools:
- It offers automatic management and saves your time
- Margins are minimized to maximize the profit
- These tools are suitable for sellers with plenty of products in the catalogs.
- Its smart usage can help you to increase your ROI
Cons of using amazon repricing tool:
- It is expensive
- You may have problems understanding what factors are helping to boost your products.
2. Manual Repricing of Products:
Being a seller on Amazon, you have the authority to reprice your articles present on amazon for sale. You can reprice your products using Amazon Seller Central or through third-party sites.
If you have fewer products to sell on amazon then you can go manual repricing. The biggest drawback of manual repricing is that it cannot give you a clear description of your products and pricing and your competitor’s pricing as well.
Pros of manual repricing:
- You can clearly understand which factor is supporting your product against your competitor’s product
- It gives you complete authority to reprice your products
cons of using manual repricing:
- Beneficial for catalogs containing fewer products
- It requires a lot of time to reprice items manually
- You need to be experienced to consider each factor of repricing items
Check out this URL https://www.zonbase.com/blog/pricing-amazon-products-set-up-your-product-listings-for-profitability/ to read in detail about selling profitable items on Amazon.
