Building vs. Partnering With a Marketplace Repricer
Which is the better option for agencies and aggregators? Find out the pros and cons of each.By Marissa IncittiJune 1, 2023
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As an agency or aggregator selling on Amazon, you know that staying competitive is crucial to your business’s success. One tool that can help you stay ahead of the competition whether you compete for the buy box or own it, is a repricer, which automatically adjusts your prices based on market conditions and competitor pricing. When it comes to acquiring a repricer, should you build your own or partner with a proven repricer?
While building a repricer in-house has its benefits, such as tailoring the system precisely to your unique business needs and goals, ensuring integration with existing systems and processes, and intellectual property ownership, buying a repricer can often be the better option for agencies and aggregators, especially in today’s evolving economic landscape. Here’s why:
Speed and Convenience
Partnering with a proven repricing leader is often faster and more convenient than building one in-house. Building a proprietary repricer from scratch requires substantial time, effort, expertise, and capital. Developing the necessary algorithms and features can be a complex and resource-intensive process, requiring a team to maintain, update and optimize which then diverts valuable attention from the aggregator’s core business operations.
By teaming up with an award-winning repricer provider, aggregators can leverage an existing, fully functional solution that has been refined over time. This allows them to streamline their operations, saving time and resources that can be better utilized in expanding their brand and maximizing growth potential.
Additionally, when you buy a repricer, you’ll have access to the vendor’s support team, which can help you get up and running quickly and answer any questions you may have.
The economic landscape has shifted, making it more challenging to secure venture capital funding for in-house repricer development. Dwindling capital makes it increasingly difficult for aggregators to allocate the necessary resources to build their own proprietary tech stacks.
Partnering with a proven leader in the marketplace repricer space offers a more affordable alternative. By engaging with an established repricing solution provider, aggregators can access a feature-rich platform without the significant upfront investment required for in-house development. This allows them to allocate their financial resources more strategically, focusing on key areas of growth and expansion.
When you buy a repricer or partner with a proven market leader, you’ll typically pay a subscription fee or a percentage of your sales. While this may seem expensive, it’s often more cost-effective in the long run, as you won’t need to worry about development, testing, or maintenance costs. Additionally, when you buy a repricer, you’ll be able to take advantage of the vendor’s economies of scale, which can help to reduce the cost of the software.
Expertise and Support
When you partner with a proven repricing provider, you’re not just buying software – you’re also gaining access to the vendor’s expertise and support. Repricer vendors typically have experience working with Amazon sellers, and they know what it takes to stay competitive on the platform. They can help you to optimize your pricing strategies and provide guidance on best practices.
As an added bonus, when you buy a repricer, you’ll have access to the vendor’s support team. If you encounter any issues or have questions about the software, you can contact the support team for assistance. This can save you time and money, as you won’t need to allocate resources to fixing bugs or resolving issues on your own.
About the Author
Marissa Incitti is the Associate Director of Content for Feedvisor, where she oversees and executes the company's content marketing strategy and initiatives. Before joining Feedvisor, she was the content marketing manager for a Fortune Global 500 omnichannel commerce technologies and operations company.
To Partner Or Not to Partner
While it was once attractive for aggregators to build their own marketplace repricer, the changing economic landscape and limited availability of VC funding have shifted preferences.
Partnering with a proven leader in the space offers numerous advantages, including enhanced efficiency, affordability, and speed. By leveraging an existing repricer solution, aggregators can optimize their operations, allocate their resources strategically, and accelerate time to market.
In this evolving industry, collaborating with an established repricer provider is a smart and pragmatic approach to achieve success in the marketplace while keeping up with the rapid pace of innovation. If you’re looking for a powerful tool to help you win the Buy Box and drive sales and profits on Amazon, consider partnering with Feedvisor.
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