Top 5 Characteristics of an Effective Amazon Repricer
This blog was contributed by our partner Feedvisor. Headquartered in New York City and founded in 2011 by Eyal Lanxner and Victor Rosenman, Feedvisor is an award-winning algorithmic repricing and revenue intelligence solution for high-volume Amazon sellers. Feedvisor powers millions of pricing decisions daily, providing online retailers with actionable insights to maximize profitability and drive business growth.
Selling on Amazon is becoming increasingly challenging. To stay competitive and relevant in the saturated marketplace these days, you need to be a strategic in your pricing and have access to the right data.
With so many algorithmic Amazon repricers on the market, figuring out which one to use is tricky. First, you need to understand the true meaning behind the term “algorithmic repricing.” Second, you need to check whether the repricer utilizes advanced machine learning to optimize pricing decisions. The list goes on. To help you differentiate between an “algorithmic repricing” knockoff and the real deal, we’ve compiled a list of the top five features to consider when choosing an Amazon repricer.
- It’s data-driven
A data-driven repricer gathers a wide range of big data that takes important metrics into account, including your prices and your competitors’ prices, shipping times, and ratings. An Amazon repricer that provides this type of data can help you map your competitive position in the marketplace and find you the ideal sweet spot that’ll win you the ideal Buy Box share every time.
- It does more than reprice
Certain Amazon repricers out there may be marketed as algorithmic, when in fact they are rule-based. What this means is that they look at your competitors’ prices and adjust your prices accordingly, often causing you to lower your prices without considering your other seller metrics.
If you’re just starting out or only handle a small portion of your business on Amazon, this strategy may work well for you. But if you’re a big seller with an extensive product catalog and your goal is to scale your Amazon business, then you need a more robust repricer. An algorithmic repricer which actively identifies dynamic market opportunities to optimize profits, margins, or sales when needed provides a smart strategy to help you stay competitive.
- It’s dynamic
A dynamic algorithmic repricer analyzes the market conditions in real time and responds accordingly. It provides you with data-driven insight about the marketplace at any given time, so you can make smart decisions about which business actions to take. So let’s say, for example, a competitor with lower seller metrics than yours enters the arena, you can then take the step to raise your prices while maintaining or even increasing your Buy Box share.
- It avoids price wars
Price wars and competitive selling on Amazon often come hand in hand. That’s the nature of the game. And with a rule-base repricer, you often end up lowballing your prices and driving your profits to the ground just to undercut the competition. But with a true algorithmic repricer, you can adjust your ceiling and floor level to fit in with your business goals. So if your focus is on increasing profit margins, the repricer will work with you, rather than leaving you defenseless in an unbeatable price war.
- It’s self-learning
An algorithmic repricer that has self-learning capabilities will improve with time. Feedvisor’s Amazon repricer collects copious data points about new items in your inventory, ASIN performance, and it closely learns your competitors’ landscape, studying their behavior and floor prices, in order to find that ideal pricing sweet spot for you in real time.
Not all algorithmic repricers are created equal. When searching for an Amazon repricer, consider whether it answers your business needs. If you’re just starting out on Amazon, then a rule-based repricer may be great. But if your long-term goal is to accelerate business growth and profitability, then you’re going to need a repricer that is smart and capable of accumulating data on how to achieve your goals.