We all know that repricing campaigns are risky – with your profits, reputation, and business’ future all on the line. But, competitive pricing sells, which is why using the right Amazon repricing tool is essential for minimizing your risks while maximizing your profits. If you’re beginning your Amazon repricing tool search, start with these 6 essential considerations for choosing the right repricer software.
What is Amazon repricer software?
Amazon repricer software automatically monitors Amazon’s marketplace, comparing your product pricing against your competitors’ and adjusting it accordingly to maximize sales and profit.
For example, you sell comical baby bibs for $19.99. An Amazon repricing tool will monitor identical product listings, decreasing your price when a competitor undercuts you and increasing your price when a competitor prices above you or sells out.
So what are the benefits of using a tool to do this for you?
Repricing software saves you from manually monitoring the market and adjusting prices, giving you more time to concentrate on other sales-boosting tasks such as customer service and fast shipping.
The technology behind repricing tools pinpoints your pricing with greater profit-inducing accuracy than you could achieve on your own – using previous sales data to predict success.
Bonus tip: learn how to improve the Amazon buyer experience to increase your buy box eligibility in our handy guide.
The instant reaction of repricing software enables you to keep your prices competitive for customers, and your profits high for your business at a far quicker rate than you could achieve by yourself.
Do you need Amazon repricer software?
Repricing software is an expense to your eCommerce business, so before beginning your search, it’s good to check that your business is ready for Amazon repricer software. We recommend investing in repricing software when:
- You sell on Amazon
- You are already generating a profit
- You sell multiple SKUs
- You have competitors selling similar items
- Your listings are properly optimized with descriptive keywords, useful photographs, and fast shipping options.
Things to consider when choosing Amazon repricer software
To ensure that your repricing strategy doesn’t result in a rocky race to the bottom, it’s important to invest in the right tools for the job. Specifically, you should be considering:
Your repricing software must work with your existing systems, software, and ways of working. Decide on your minimum requirements, including:
- Downloaded or cloud-based software (we recommend cloud-based)
- Operating system and web browser compatibility
- Integration with current systems (such as inventory management software)
- Integration with other sales channels (such as Walmart Marketplace)
- Compatibility with the Amazon regions and currencies you use
Repricing tools come with features in all shapes and sizes, for different business needs and strategies. Common features that may be on your must-have list include:
Basic tools collect pricing information only from your competitors while more advanced tools gather information on price, shipping price, handling time, offers, and more.
Default minimum and maximum price
To avoid a profitless race, ensure that your tool allows you to set a minimum and maximum price and, if necessary, takes into account your desired profit margin. If you’re working with lots of SKUs, a bulk editor for this task is especially useful.
Simple repricing tools work using built-in algorithms to determine the most profitable and competitive price. More advanced tools allow you to set your own repricing rules such as:
- Competing for the second and third lowest price
- Increasing prices when demand is outstripping supply (e.g., in the holidays)
- More aggressive repricing on certain days or at certain times
- Ignoring competition with low feedback scores
If you have a significant number of competitors, competitor filtering can greatly improve the results achieved when repricing and avoid unnecessary pricing drops. Look for a system that offers different competitor filters, including item condition, seller rating, dispatch time, and seller IDs.
Winning and maintaining the buy box is a key benefit of adopting a repricing strategy on Amazon. If this is important to you, ensure that your tool competes with featured sellers. If winning the buy box is your only motivation, then a tool that prices only against the buy box holder will be beneficial.
Speed is everything when it comes repricing – affecting your ability to compete and retain the buy box as well as attracting the maximum number of customers. Look for a system that reacts automatically, in-line with its competition and quicker than adjusting prices manually.
Reporting functionality is important for any eCommerce tool. With Amazon repricers, you want access to information on:
- The number of price changes per day, week, and month
- Current and past competition per product
- Product pricing history
This data will give you an overview of how well your repricing strategy is working, and areas to tweak if it’s not producing the results you want.
It’s imperative that you can easily set up, use, and understand the system. Look out for time-saving system features including:
- Bulk changes
- Quick editing
- Easy filtering
- Live system status
Payment options vary between providers and typically work on a monthly, commission, profit, or SKU basis. Ultimately, repricing software should deliver ROI, increasing your sales, and boosting your earnings. Take this into account when looking at fees and select a payment option that suits.
How do you get to figure out all of the above before hitting the buy button? Always take out a handful of free trials to compare products and get a feel for the software. With so many available, it would be silly not to.
While most are simple plug-and-play tools, there’s always the possibility that you’ll need a helping hand in the future. Research the support options available and ensure that they’re included in your fees.
Amazon repricer – the bigger picture
And, our seventh and most important consideration when choosing Amazon repricer software is to keep thinking about ‘the bigger picture.’ Repricing tools aren’t a magic pill for long term success. If you’re not offering customers additional value in the form of outstanding service, Amazon Prime fast shipping, and quality products, you will fail to develop long-lasting customer relationships that increase your CLV. Get these in check first, and pick your repricing method second.