Whether you are a newbie or a senior Amazon store owner, everyone wants to make more money. There is no doubt about that. The question is: How low is a seller prepared to go in making the sale? Find out what the top 6 repricing mistakes are that sellers on Amazon should avoid.


Mistake # 1: YOU don’t have to offer the lowest price to make the sale.

Many people think that the Buy Box is completely dependent on who offers the lowest price, that’s not always the case. Price is important but not for every buyer the most important criteria when making an order. There are other features that buyers take into consideration before pressing the BUY button. All these will have an impact on your sales figures: your order defect rate (the percentage of your orders that received negative reviews), your late delivery rate and your pre-fulfilment cancel rate.


Mistake # 2: YOU should not ignore the Fulfillment Type.

Sellers should take advantage of FBA (Fulfillment by Amazon) which will allow them to gain an increase in sales, while at the same time drastically reducing their fixed costs. By the way, did you know that as a FBA seller you can gain access to more than 20 million Prime subscribers? They spend on average 150 % more than non-Prime subscribers!

As a FBA seller you can price your products 2-10 % higher than your competitors (who are not FBA sellers) and still make the sale. This is possible due to the fact that delivery is included in the total cost. For example, let’s say you charge for a product £15 with Prime free shipping. This would still beat out a merchant-fulfilled product which is priced £10 + £5 delivery.

Since Prime customers get also free 2-day shipping (if they are looking for Amazon-fulfilled listings) your visibility would also increase.


Mistake # 3 – YOU should consider the costs. 

In this case sellers try to lower their prices to an extent in which they don’t realise that the price will drop below a profitable threshold. Direct costs (e.g. costs of goods, packaging, delivery etc.) and indirect costs (such as storage fees, employee salaries, accountant payment and any other fees involved in running a business) need to be taken into consideration. Make sure you are aware of where your real bottom line lies in order to avoid making losses.


Mistake # 4 – YOU should not think that all repricing software programs are the same.

The purpose of a repricing software should not be limited to the adjustment of your SKU (stock keeping units) only. This often happens for a very minute price difference from your competitors. You would actually share the Buy box with your competitors, even if you price within 2 % of your competitor’s price.

When buying a repricing software pay attention to the following points:

  • make sure it works in real time;
  • it should be able to instantly offer a higher price in case your competitor has run out of stock for a product you have (this would allow you to easily increase your profits);
  • it should deal with FBA-specific situations. An example: You wished that your repricer would be able to ignore Fulfillment by Merchant (FBM) listings if you are the only FBA seller, or sellers with poor reviews. If you are selling with FBA, your repricer should also price your products 2-10 % higher than an FBM seller.

Since every business is different, it would be important to have an Account Manager who can advise you on the best strategy. Find a repricing software which is customised specifically to your company.


Mistake # 5 – YOU should not forget to segment your repricing strategy.

It would be advisable to have a different pricing strategy for each item that you are selling. Segment your products according to their age and any other relevant factors. For example, products that are in high demand should be priced differently from those that you are struggling with to sell. The higher in demand a product is, the better your chances are to increase your profits.


Mistake # 6 – YOU should not run out of stock.

Don’t just rely on your software when it comes to your inventory. Keep an eye on your bestselling items and make sure you always have enough products in stock. You would miss out on many sales if you would frequently stock-out on your bestselling products. But not just that, if you are selling an FB item that is not available, the client might write a negative review. If this occurs during holiday periods – in which a client is looking forward to their presents – it can be very damaging to your reputation. Now imagine if there are 5 clients who make the same experience!


Bear in mind that repricing is only one part of the whole Amazon experience. If you want to establish a great Amazon store you should also:

  • Keep an eye on other products and brands that you could store (and which would be profitable to you).
  • Focus on your bestselling items and make sure that you never run out of them.
  • Observe whether you have any stale inventory and consider of reinvesting in more profitable products.