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5 Questions to Ask Before Getting an Amazon Repricer

If you're considering getting an algorithmic Amazon repricer for your online business, make sure you ask yourself these important questions. By Matt Juul July 8, 2021

When searching for the right Amazon repricer, the phrase “dynamic pricing” is often brought up by optimization technology companies looking to associate themselves with this powerful approach to setting prices for products. Certainly, when operating on a dynamic marketplace such as Amazon’s, having a dynamic pricing solution is crucial to keeping pace with the constant changes in market conditions and competition levels.

Unfortunately, not all platforms are created equally, with many services billing themselves as having dynamic or algorithmic repricing capabilities, when in reality, their software is actually rules-based. In these scenarios, the user is forced to set a series of rigid rules for maximum and minimum prices, as well as other factors that follow inflexible guidelines. Rules-based repricers do not use AI-driven technology like algorithmic repricers, which constantly adjust pricing in real time based on changes in market conditions, competition, and key operational data.

Knowing whether a software can dynamically price products on Amazon based on these ever-changing factors is crucial to helping you determine which type of platform is right for your business and goals. 

In this post, discover the key questions that every brand and retailer should ask when choosing the best Amazon repricing tool for your Amazon business.

1. Is  an Amazon repricer capable of collecting a wide range of data?

A true algorithmic repricer uses a large variety of big data insights to help e-commerce sellers meet their strategic business goals. This ensures the greatest levels of repricing accuracy in a dynamic and complex competitive environment.

Start by asking yourself whether a repricer takes into account the right marketplace variables to inform changes, such as your landed price, competitor prices, fulfillment method, shipping speed, stock availability, and ratings. This will help you quantify your competitive state, and see if you have an edge. If you do, how much is that competitive edge worth?

For example, if Seller A boasts near-perfect feedback scores and uses FBA, and Seller B (who sells the same product) has inferior metrics, Seller A can afford to raise prices without sacrificing profit or Buy Box share. A good algorithmic repricer is context-driven, picking the price point that will get you the ideal Buy Box share every time.

2. Does an Amazon repricer consider factors beyond just price?

As we have seen based on analysis, rule-based repricers work by adjusting your prices according to that of your competitors, while ignoring all other seller and market metrics. This frequently works fine for smaller, entry-level businesses. However, larger sellers managing a big portfolio care most about their long-term growth. For them, profitability is king. And a true algorithmic repricer knows how to proactively identify if there is an opportunity to optimize for profits.

In addition, it can determine if market conditions are such that a more aggressive approach should be taken in terms of optimizing for more sales, at the expense of margins. Factors such as business costs, sales velocity, shipping time, stock availability, and more should all be taken into consideration by the repricing technology.

3. Is an Amazon repricer able to adapt as market conditions change?

A true Amazon algorithmic repricer should be dynamic, responding to current market conditions and offering a complete picture of the competitive landscape. Unlike static rule-based repricers, it adapts to give you the advantage based on what is going on in real time. For example, if a weaker seller suddenly enters the competition, you can likely afford to increase your prices while maintaining or increasing your Buy Box share. 

Additionally, private labels and brands that already own the Buy Box can leverage dynamic pricing technology like Feedvisor’s ProductSphere™ to assess direct and indirect competition using sophisticated demand models that actively adjust prices to increase market share, optimize sales rank, and maximize sales.

4. Can a repricer help you win price wars?

Selling on Amazon with a rule-based repricer is much like fighting a war without a shield — a price war, that is. When your goal is to undercut your competitor at any cost, and their goal is the same, you end up driving each other down to floor price. A good algorithmic repricer allows you to set your business goals, and if you prioritize maintaining or increasing profit margins, then it will prioritize profit margins as well. This reduces the likelihood of getting entangled into unwanted price wars that can kill your profit (and your business).

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About the Author

Matt Juul is a content writer at Feedvisor, where he contributes to the company's content marketing initiatives. Prior to joining Feedvisor, he was a content marketing writer and podcast host for a business aviation brokerage.

5. What machine-learning capabilities does a repricer have?

A genuine algorithmic repricer is self-learning; that is, it improves over time. For example,  Feedvisor’s award-winning platform uses AI-powered technology to continuously drive profits, constantly learning and improving as it collects more data about new products you sell. It also learns competitors’ behavior and their floor prices while identifying the optimal price point for you at that moment. It can receive initial input (i.e. floor and ceiling price), and determine through accumulated data how to achieve your goals.

Final Thoughts

Many of the purported “algorithmic” repricers are actually just a bunch of rules bundled together. When shopping for an Amazon repricer, ask yourself the above questions so you can begin your search on the right foot. If you are just beginning your Amazon journey, a rule-based repricer may be sufficient in the short term, however, the bigger your business gets, the more you will need an AI-driven repricer like Feedvisor’s advanced platform for brands and retailers, which can make smart decisions by itself without being told how to behave.

Learn what Feedvisor can do for your business.

When you partner with Feedvisor, you automatically receive access to our true, AI-driven technology and hands-on team of e-commerce experts. Contact one of our team members today to learn more about our end-to-end solution for brands and large sellers on Amazon, Walmart, and e-marketplaces.

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