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Why Do Sellers Need Amazon Repricing Algorithms?

By Tami Ben-David July 15, 2012
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About the Author

A British ex-pat, Tami been writing and content-strategizing for Israeli tech start-ups for the last 5 years. When she's not writing nerdy content, you can find Tami on open water charity swims or traveling to far-flung countries.

Winning the Buy Box is the primary objective of Amazon sellers. So what should one do to continuously win the Buy Box?

Some sellers believe that the only way to win Buy Box is to lower the price. In reality the Amazon algorithm is way more complex. It gives a score to every seller competing for the Buy Box. This score is calculated by examining various aspects of seller’s offer and performance metrics, such as rating, reviews, fulfillment channel, returns, refunds, sales volume, etc.

Given this rather complex formula, a seller with a higher price can still keep the Buy Box. This is very good news for all those who have taken time and hard work to build their reputation on Amazon. Instead of continuously under-pricing competition and engaging in price wars they need to find the optimal price to win the Buy Box at the highest possible profit margin.

Repricing is the process of continuous automated price adjustments. The key to effective repricing method is to continuously sample and properly analyze the competitive environment. However it?s practically impossible to reprice each and every product manually, that’s why an automatic pricing software is well needed in this situation.

Even though repricing solutions have been around for years, Amazon merchants are still in need of an intelligent automatic repricing algorithm, which will be fully automated, will avoid the price wars and will optimize sales and profit. This is exactly what Feedvisor is offering a fully automated Amazon repricing software, which determines the optimal pricing for your merchandise, without the need for pricing rules.

For more information on Amazon repricing solutions. contact us 

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