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Amazon Repricing: How it Works, and Why Your Business Needs it

This is a guest post from Hannah Jennings-Voykovich. Hannah is the Content Strategist at SellerActive, which specializes in multi-channel listing management and automated repricing technology for eCommerce businesses.

Every day, every hour, and almost every minute, Amazon.com is changing. To the consumer, things look static and unmoving. In reality, listings and prices are in a constant state of flux. For sellers, Amazon can be a jungle. But luckily, there is software that can tame it.

What is Amazon Repricing?

Simply put: Amazon repricing is the changing of prices on marketplace listings. Around 2.5 million prices changes happen per day on Amazon, meaning that on average, prices change on individual listings every ten minutes. Like any business, Amazon listing prices change so sellers can keep their prices competitive and increase profits.

Most people who use Amazon won’t even notice these changes happen, but subtle pricing tweaks can cause a sales spike or slump to sellers.

How Does Amazon Repricing Help Sellers?

Everything for sale on Amazon has its own listing page. If more than one supplier is selling the same item, a listing will have multiple offers “attached.” One winning offer will occupy the eye-catching “Buy Box.”

Every other offer will be visible, but tucked away in the “Other Sellers on Amazon” section:

How Amazon decides which seller owns the Buy Box is a closely-guarded secret, but price competitiveness is one of the key factors proven to make a difference. Winning the Buy Box is a challenge for sellers, but the payoff can be huge — more than 80% of sales on Amazon go through the Buy Box.

Every day—often multiple times an hour—sellers will reprice items in an attempt to gain (or re-gain) Buy Box ownership. Some try to do this manually, but most will use sophisticated software to do this for them.

What is Automated Repricing Software?

Automated Repricing Software is technology that sellers can program to change prices on their behalf. To put this software to work, sellers set strategies with specific goals, such as owning the Buy Box, or selling a number of units over a set period of time.

Once strategies are set in place, Automated Repricing Software will assess market data (such as competitor prices, seller metrics like feedback rating, fulfillment type, and more) and make changes to the seller’s prices accordingly.

Let’s say your goal is to maximize the time your offers occupy the Amazon Buy Box. Automated Repricing Software will compare market data, including your seller metrics compared to your competition, and make intelligent prices changes on your behalf.

If you have goals beyond simple Buy Box ownership, you can set your repricing software to help with them, too. For example, if you’d like to maximize profit margins, your repricing software can raise your prices once Buy Box ownership is attained. If you happen to lose the Buy Box, your software will restart the process by lowering the prices again.

Is Automated Repricing a Race to the Bottom?

Many sellers worry that setting repricing strategies will result in a race to their floor price; aka, the lowest number they’re willing to sell an item at. However, with Automated Repricing Software, you can set minimum and maximum prices for the software to work with when searching for an optimal Buy Box price.

Does My Business Need Repricing Software?

Amazon’s Seller Forums are awash with questions about repricing. Sellers all over the world want to know – should I get repricing software? Is it worth the money? Do I really need another software solution?

Yes, it’s true that you can log into Amazon and manually reprice your items. However, the time and sophistication gained by using Automated Repricing Software is worth considering. Automated repricing decisions take many different factors into account, and do so accurately, and rapidly. If you’ve got better things to do than spend your day studying and updating your listings, repricing software can help.

How to Choose Repricing Software

Every business is different, and your repricing software should reflect your company’s unique needs. You may be interested in winning the Buy Box, or selling a target number, or even just mirroring prices from your website to your Amazon store. Choose a repricing software that works for you, and you’ll see better returns, faster.

Also, make sure that your repricing software grows with you. Amazon may be the world’s largest marketplace, but big players like Walmart and eBay still account for a huge chunk of online sales. Not every repricing solution can help with sites like Walmart, but SellerActive can.

Want to learn more? Sign up for a webinar with SellerActive and Deliverr, where we’ll show you how to maximize summer sales with the help of tools like Automated Repricing. Register now

About SellerActive: SellerActive is a multi-channel management platform that helps eCommerce businesses grow their product reach. Easily build a centralized product catalog, bulk upload new listings to multiple channels, and use automated repricing technology to set pricing rules that can help capture the Buy Box an average of 72% of the time. Backed with live support from a team of eCommerce experts, SellerActive can help you automate manual tasks, expand your online presence, and grow your business.

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