You might have heard the term “repricing” if you sell your products online, particularly if you sell on Amazon. But what exactly is product repricing, and how can it help your business?
An introduction to repricing
Product repricing is the art of changing the price of your product in response to market conditions. If many people are selling the same item, you want to make sure it is yours that stands out the most to potential buyers.
Let’s imagine ten different people are selling the exact same cookbook. They are all brand new and all available from the same place. Which one are you going to buy? Chances are it will be the cheapest.
If several of your competitors reduce their price of an item and you aren’t monitoring these changes, you will miss out on sales as customers flock to the lower priced items. That’s why it is so important to have an effective product repricing structure in place.
Why is the Amazon “Buy Box” important?
When you look at a product on Amazon, it can be sold by Amazon itself, a third party seller, or a combination of the two. On the product page there is a box that contains the price of the item, with a prominent “Add to Basket” button. This is called the Buy Box.
Even if there are many different sellers selling that specific item, only one will be featured in the Buy Box. If your business is shown in the Buy Box, it’s almost guaranteed that if the person browsing Amazon decides to purchase the item, it will be your product that they buy.
How to win the Amazon Buy Box using repricing
Although there are several different conditions that decide who will be shown in the Buy Box, it’s largely decided by product price. If your product is the cheapest, it is more likely to appear in the Buy Box.
If your competitor lowers their price, they may “steal” the Buy Box from you. Repricing your produce to slightly lower than the competitor may enable you to win it back.
Even if you have a relatively small product line, constant monitoring of competitors prices can be extremely time consuming. When you have hundreds or thousands of different items, it becomes impossible to perform these checks manually. To avoid missing out on selling opportunities, many Amazon sellers choose to use repricing software to automate the repricing process.
The benefits of repricing software
Repricing software such as EReprice takes the stress out of managing product prices. It helps you to keep on top of your competitors, manage your stock levels, track your performance, and more.
Repricing software works 24 hours a day to keep you on top. If your competitor changes their price at 2am – not a problem; your price will be altered straight away.
Complex algorithms are used to ensure that not only are you the best priced, but that you are making the most possible profit on your sales.