You just started selling on Amazon, and noticed that your online business started taking the right direction. And now what?
Now, you most probably consider expanding your catalog of items and list more items. With having your inventory boosted, comes the time when you face competition on Amazon.
Imagine that the number of people selling on Amazon is growing each day. Who is going to be on the first Amazon offers page? Who is going to take the bigger piece of the cake? How to beat those competitors and still not ending up losing money?
In one of my previous blog posts I mentioned and explained the Buy Box. Her Majesty is responsible for the majority of your sales and increasing your visibility on Amazon. There are many factors that influence getting the Buy Box on most of your items. Find out here:
Among all of that, one big factor that will help you to get the Buy Box and be more competitive on Amazon is starting to use automatic Repricing Tool.
Very simple! To have the right pricing strategy is one of the most important parts of selling on Amazon. Prices are changing constantly and you have only two ways to change your prices: either manually or by using an automatic RePricing Tool!
Let’s look at some of the reasons why you should start using RePricing Tool:
1. Save your precious time!
Imaging having more than 100 SKUs and each of them have more than one competitor. The one who have nearly perfect metrics and the right price at the right moment will get the Buy Box. You on the other hand, by having all the other responsibilities connected with your online business, means that you won’t have that much of a time to track the Buy Box price all the time. By having a RePricing Toll, you can always keep up with the competition without the need to check their prices constantly! Automated RePricing will free up time from your busy schedule, and sometimes even hours!
2. Understand your costs better!
Once you start using a Repricing tool, you will have to enter your minimum and maximum allowed selling price. That way you will get to know all of your costs better (including shipping) you are prepared to sell your product at to ensure you are making a profit.
On the other hand, your maximum prices should be realistic, and not ridiculously high. If your product is priced above the manufacturer’s suggested retail price (MSRP), you take the risk to be suspended by Amazon.
3. Choose your competition wisely!
Not everyone that sells on Amazon is worth competing against! There are many sellers who are not approved by Amazon to win the Buy Box. Managing your prices manually, you will never know who is or who is not your eligible competitor! On the other hand, you can easily avoid competing with merchants that want to engage in a price race to the bottom. Having a good RePricer in place will help you decide who you want to compete with and how. For example, if you are FBA seller, you may want to exclude competitors with poor metrics and using Merchant Fulfilled network (MFN).
4. Increase the Buy Box quota of your items!
I already mentioned the Buy Box and it’s importance for increasing your sales. Since 90% of the sales on Amazon are going through the Buy Box, you should aim to win a share of it as well!
One part of the puzzle to increase your Buy Box quota is by delivering an outstanding customer service. The other part refers to your price. In order to have the right price at the right moment, automated RePricer is your right choice! Not only will react faster than you will ever react manually, but also calculates the right price considering all the metrics your competitors have.
5. Find out your right pricing strategy!
Once you start using a RePricing Tool, you will find out what is the right pricing strategy for your online business. It’s important to experiment, match your rules with your business goals and find out what strategies bring you the most profit. However, with repricing it’s not just about set up the rules and forget about it. You should be checking your strategies regularly and make improvements along the way, as everything on market change.