Amazon repricing involves changing the price of your products often to make them more competitive, take advantage of supply and demand changes, win the shopping box and increase profit margins.
But there is more than one revaluation strategy.
There are actually several different strategies to choose from. So how should you create an Amazon repricing strategy that will work for your business?
In this guide, we’ll look at the main factors to consider when creating Amazon repricing strategies.
TL;DR
There are several factors to consider when devising a revaluation strategy.
These include knowing who your real competitors are and understanding your overall costs.
These factors will help you choose the right recalculation strategy, whether it’s a Buy box win, an inventory-based revaluation, or something else.
Use the automatic price change tool to make the whole process faster and more efficient.
Prioritize your products
The first thing you need to do is decide which products you want to prioritize.
You may not want to have a strategy for all of your products, so prioritize products that are hard to get rid of, or higher priced products with more room to lower your price to be more competitive.
Evaluate your products and focus on the ones that will have the biggest impact on your profits.
Also consider supply and demand. If you are the first to start selling a product, you can charge a higher price initially. But watch it carefully: as more sellers enter the market, you can change prices downwards to stay ahead of your competitors.
Calculate your costs
You can’t create a solid repricing strategy without having a good idea of your costs.
Amazon fees are very important when it comes to pricing decisions, as are selling and FBA fees.
Before you start working on any repricing strategy, know your numbers and get a clear idea of your total costs. It’s much easier to implement a strategy when you have a good idea of your costs.
Costs fluctuate but determine your profit. Manufacturing costs, research costs, materials and shipping costs are important. Before you can determine your strategy, you need to know what your costs are.
Go through all the costs and see what your bottom line is. Also, don’t forget to consider the overall prices your competition is providing.
Find out who your real competitors are
When starting a repricing strategy, you need to know who your competitors are. It’s not always obvious, and it doesn’t make sense to compete with sellers who aren’t your real competitors.
For example, if you’re an FBA seller, you won’t be competing with non-FBA sellers, so this is an easy way to exclude some sellers.
You can also choose to exclude competition based on other factors such as processing days.
This includes the condition of the products. If you sell used products, you don’t want to compete with new products.
Focus on factors other than price
Don’t assume it’s all about price. Price is one of the most important factors, but customers are also interested in other factors, including:
Quality
Value
Shipping time
Customer service
Product review
Having a better reputation, the best reviews and a faster delivery time means you could raise the prices of your products and still get more sales.
Decide on your minimum and maximum price
You cannot start a serious repricing strategy without determining the minimum price you are willing to sell your products for. This will depend on your total costs as mentioned above.
It is especially important to have a minimum price to avoid selling at a loss and lose your profit. There should be a price you won’t go below.
You can then set this in the price change software or do it manually. But don’t let your emotions get the better of you, or you could end up setting the lowest price but going below your minimum, so you’ll lose money even if you sell more.
Setting the maximum price is also important. You want to make more profits so that when a competitor drops out, you can raise your price and take advantage of the lack of competition without going too high.