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How to Choose the Right Pricing Management Software for Your Business
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Pricing management software can take many different forms for many different businesses. Some companies choose to manage their pricing from within a wider inventory management suite, and others choose a dedicated software specifically designed for pricing management.
The same is true regarding pricing on the Amazon marketplace. Retailers can choose to use the (often free) repricers that come with multi-channel service platforms or inventory management tools, or they can go with a single solution; a company that specializes in repricing.
Companies that Specialize in Repricing
Those who choose not to reprice manually have two alternative repricing options. They can either go for a rule-based or an algorithmic repricer tool.
Three years ago, the only Amazon pricing management software on offer was the rule-based solution. Multiple companies offered varying forms of the rule-based method, with some offering experts to set the rules for you, and others offering inventory analysis or advanced analytics.
But the core of every rule-based Amazon repricer is the same. It looks at the prices of the retailer’s competitors and responds accordingly.
The thing with the rule-based system though, is that it’s kind of limited. Rules can only take a retailer to a certain level. Yes, they can win the seller the Buy Box, but often this win means profits are compromised.
The Algorithmic Alternative
Just looking at competitor’s prices – wasn’t and isn’t – enough. What algorithmic repricing did was to say – since Amazon doesn’t pick the Buy Box winner solely based on price – it can’t be that repricers are optimized if they only focus on price.
The proponents of algorithmic repricing understood the need for taking into consideration all market conditions, including:
Everything to do with the seller
This includes the seller performance metrics, costs, price limitations, and business goals.
Everything to do with the seller’s competitors
This includes all their metrics, their price limitations, and their repricing method.
Information to do with Amazon
This includes the weights Amazon give to different metrics for each product and their overall ranking method in general.
Your Go-to Software
A very complex and multi-faceted algorithm extracts all of this information and then finds the exact pricing sweet spot that will win the seller the Buy Box at the highest possible price.
Currently the only algorithmic solution on the market is Feedvisor, an algorithmic repricing company founded in 2011. Feedvisor has already made big waves in the eCommerce and technology world, having won the prestigious Red Herring Top 100 Europe and Top 100 Global awards in 2014.
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.