Considering the tediousness of the task, manually readjusting ceiling and floor values is a daunting prospect for most Amazon sellers. Free your valuable time for higher-value growth initiatives with our comprehensive guide to repricing Amazon products in 2022.
Pricing on Amazon is a complex process. Even when you’re not listing new products, you’ll want to review pricing on all your current products in your FBA warehouse.
Why? To make sure you’re maximizing sales and profits with the least amount of effort and resources.
Beyond that, other factors that determine the need for an Amazon FBA reprice include:
Your competitors’ current pricing is an important factor to consider. Why? Because it will tell you what they are currently charging.
This data is crucial if you’re looking to reprice a product that’s under-performing or over-performing. Your competitor reprice will also help you keep up with the changing market trends and make subsequent reselling decisions easier.
That said, it’s important to keep in mind that your biggest competitor will be Amazon itself. You may be able to get a leg up against your competitors, but you’ll have a harder time trying to get Amazon to place you where you’re visible to your customers.
A good way to beat the Amazon algorithm is by pricing your products competitively, making sure you have enough stock to move around for quick fulfillment, and updating your product descriptions to provide accurate and helpful information to your customers.
Consumers are more likely to purchase products during events such as the Super Bowl, the MLB All-Star Game, and other popular occasions. These events bring in a lot of different buyers who may have different needs or opinions on pricing and product value.
These event-based purchases can actually be good for Amazon FBA reprice strategies because they increase the total sales that your products can generate. This can translate into more brand exposure in Amazon’s algorithms, as well as new customers and a higher overall sales volume.
Keep in mind that consumers tend to look for the best deals during this period, so you may want to give a discount or offer a free item for a minimum purchase to catch a buyer’s eye.
Pro Tip: When re-evaluating your pricing strategy, avoid increasing the cost of your product. Your customers will almost always notice, and the domino effect will result in negative opinions of your brand.
Amazon’s price trend fluctuation will vary from seller to seller because the retail giant has many brands and sellers on its platform. Expect competition to be fierce regarding pricing. Sellers need to make sure that their prices are competitive enough that customers will still want to purchase their products at a certain price point.
One way you can do this is by reanalyzing your product prices every month and rebalancing them if necessary. This will help you get your Amazon FBA prices correct consistently and allow for the best chance at new sales opportunities.
This is where price wars come in. When you see your competitors increase their prices, you need to be prepared to match their offer—while it may seem like you should lower your prices to sell more, it’s not always a good idea. We say this because lowering your prices will also affect your profit margin.
This may require going in and making changes to your product’s price or researching different suppliers to find the perfect balance between a well-priced product and competitive pricing.
Amazon has a Buy Box algorithm that considers the price, shipping costs, and product ratings. Repricing your Amazon products will help you win the Buy Box and get more visibility in front of your target customers.
Winning the Buy Box relies on Amazon’s pricing structure, which means that if other brands are selling their products at a lower price, you may be unable to win the Buy Box.
If you’re currently winning the Buy Box but notice that other sellers are starting to undercut your price, it may be time to reprice your product or go back to the drawing board and consider a different strategy.
Amazon typically equates lower prices with happy customers, so you’ll have to make sure you structure your prices carefully, so you don’t lose money or lose the coveted Buy Box.
The biggest drawback to doing things the “good old-fashioned way” is that it’ll take you a lot of time. You’ll need to conduct research for each product and manually reprice all your products one by one. This can take a lot of time, and you could miss out on sales opportunities because you cannot catch reprice opportunities in real-time.
If you insist on repricing your products manually, here are some tips you might find helpful:
What is your average price range? What are the percentages of units that are selling at a certain price? If you can’t pinpoint the values you want to attribute to each one, it’s best to focus on one or two key areas that will help guide your pricing strategy.
This will help you identify which products are selling well and which need to be repriced.
One of the most lucrative ways to make money on Amazon is by reusing your product listings and making changes to your product’s prices. You can do this in a number of different ways, including updating the expiration date on an item or changing the package size.
Pro Tip: Automate your repricing strategy by setting up alerts and notifications for yourself. This way, you’ll know when to make the changes necessary to help each product sell.
If you’re looking for more control and the ability to get things done quickly, you may want to consider using a third-party repricing tool. These tools will allow you to manage lists of products quickly and easily, as well as help you stay on top of pricing trends and reprice items as they see fit.
Automatic repricing tools allow you to input new prices and manage existing ones easily. As a seller, you’ll be able to start, stop, pause, and modify your campaigns in order to keep track of how well each product is selling.
Automatic repricing will help you stay on top of trends that can affect pricing throughout the year. For example, if Amazon’s calendar tells you that the holiday months are approaching, you may want to raise your prices accordingly because more people will be buying gifts.
Here are some tips you may find helpful when using a repricing tool:
What’s even more impressive is that it works on 11 unique Amazon marketplaces. This way, you can adjust your prices in reference to different price tiers, trends, and market conditions.
Here’s what the software has to offer:
What makes RepricerExpress so helpful is that you won’t need to spend time analyzing your products and adjusting prices every single day. Furthermore, you won’t have to risk using a tool that operates with outdated information.
If you’re interested in this tool, you might want to check out their 15-day free trial before subscribing to any of their plans.
Bqool is a unique repricing tool that uses machine learning algorithms to help you maximize your profits on Amazon. It’s also useful for determining which items are the most profitable to sell and which ones you might as well take off the shelf.
The Bqool app applies deep learning technology to a large database of products to determine the most profitable prices for each product in your stock. If it senses that an item isn’t selling well, it’ll automatically reprice it.
Furthermore, it employs a unique repricing tactic that involves identifying which competitors you need to reprice against. This way, you can streamline your strategy to make sure it’s as efficient as possible.
Here’s what it has to offer:
You can try Bqool for free for 14 days. Just sign up for a free trial on their website to give it a whirl.
What’s the Best Way to Reprice Amazon Products?
Repricing your Amazon FBA products can be tedious and time-consuming. However, it doesn’t have to be. Choosing the right Amazon repricer tool not only simplifies your pricing strategy but also brings you a step closer to fully automating your Amazon FBA business.
Keep in mind that Amazon values giving an Amazon FBA buyer the most value for their purchase. This means that they love choosing brands with low prices to feature on the Buy Box. However, you shouldn’t let this pressure you into being the cheapest—since that won’t work in your favor either.
Instead, focus on finding the balance between a good profit margin and providing your Amazon FBA buyer with a solid deal that they’ll be coming back for time and time again.
To learn more about how your Amazon brand can become Amazon aggregator-ready, get in touch with Benitago today.