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Why You Still Need a Repricer Even If You Already Own the Buy Box
The Buy Box is one of the most competitive pieces of real estate on Amazon. Capturing a share of Amazon’s Buy Box is the main focus for many competitive brands and private label sellers on Amazon’s online marketplace.
If you already own the Buy Box on Amazon for one or many different Amazon Standard Identification Numbers (ASINs), congratulations! But just owning the Buy Box isn’t going to cut it, especially if your goal is to turn a profit.
Continue reading to learn why you still need an Amazon repricer, even if you already own the Buy Box, and the types of Amazon repricer tools available to you.
Why Do You Still Need a Repricer If You Already Own the Buy Box?
The landed price, which is the total price of the item plus shipping, is one variable that influences Buy Box winners. That’s why pricing is such an essential piece for so many sellers on Amazon.
Just owning the Buy Box doesn’t always guarantee sales or profits. You also have to consider your own unique Amazon business goals and selling models. One way to increase your sales on Amazon is by optimizing your product pricing, which is not an easy task to do manually.
If you’re selling private label products on Amazon, you may not have to worry about competing for the Buy Box on the specific ASIN. Still, you need to price your products against competitors that may be selling a similar product. Your price directly impacts your profit and sales velocity and with shifts to the market, seasonality, and changing business goals you need to be optimizing your pricing for your products. It can be hard to keep up if you are doing that work manually.
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Amazon Repricer Tool Options
The more SKUs you bring into your catalog, the harder it can be to manage them all. As Amazon product prices constantly fluctuate and your catalog grows, suddenly all your time will be spent manually adjusting your product prices to meet the demands of a dynamic marketplace.
Manual pricing gets in the way of allowing you to give your attention to other important business decisions like growing your catalog and making impactful optimizations and important business decisions outside of just price adjustments.
Besides manual pricing, there are a few different types of tools that Amazon sellers can use to optimize their prices in real-time if they aren’t doing so manually.
Further Reading: Factors that Increase Amazon Sales for Buy Box Owners
Types of Amazon Repricer Tools
Amazon repricing software or tools can usually be broken down into two types:
Both types of Amazon repricers can help you drive sales volume, increase profit margins, and improve your Buy Box share, but algorithmic repricers can do even more. The biggest difference? Algorithmic repricers assess your entire competitive landscape over time giving you real-time optimizations, while rules-based technology focuses on lowering prices instead of optimizing for maximum profits.
Further Reading: Learn the Factors You Should Consider in Your Pricing Strategy
How Does an Algorithmic Amazon Repricer Work?
Feedvisor’s ProductSphere Private Label Repricer is designed for brands and private labels that own the Buy Box. It is AI-powered technology that uses machine-learning algorithms that identify your competitors in search and optimizes your prices in real-time.
You can also adapt the strategy to better pair your business objectives with the strategy-based algorithm to create a pricing strategy that best suits your needs: revenue optimization, profit, or liquidation.
In 2019, the reseller model on Amazon changed, bringing an influx of third-party sellers to the marketplace in many of the original categories creating more competition and Amazon price wars. To combat this issue, many Amazon sellers expanded their catalogs to include private label products.
According to Feedvisor data, 29% of Amazon brands have private label products as part of their catalog. These changes in the marketplace led to Feedvisor creating an AI-based dynamic pricing solution specifically for private label ASINs because of the increasing complexity of competitive pricing.
Many of our clients appreciate the control they get to manually customize the optimum balance they are looking for between revenue and profits to best set objectives at the different stages of each of your product’s cycles.
For example, Espresso Republic moved to Amazon in 2012 and quickly became overwhelmed with the number of SKUs they needed to reprice. Feedvisor was able to help, and Espresso Republic, an enterprise private label, saw a 150%+ profit margin in six months.
Why Do You Need an Algorithmic Amazon Repricer?
Building a private label pricing strategy can be difficult to maintain manually, and rules-based repricers cannot predict future changes, nor can they help inform business decisions. It can become a “race to the bottom” to keep up with the competition.
With Feedvisor’s algorithmic ProductSphere Private Label Repricer, you can:
- Map the competition within your ASINs category with insight into real-time market conditions, performance, and competition
- Execute explore-exploit price changes
- Optimize for revenue, profit, or liquidation
- Track and outpace your Amazon competitors by quickly adapting to changing market conditions
- Avoid or delay your out of stock inventory and save time by optimizing price based on inventory availability
Feedvisor’s award-winning ProductSphere repricer stands out because the technology is designed for brands that already own the Buy Box. You are able to aggregate data streams in real-time to create a powerful algorithmic repricer to respond to dynamic market conditions to fuel growth. Feedvisor helps you not only automate your pricing but gives you the insights you need to build a pricing strategy that aligns with your goal profit margins and helps to maintain your brand equity.
Amazon continues to grow and become more complex. Now more than ever, businesses need advanced technology to help them keep up.
Considering adding Feedvisor’s repricing technology to your business? Feedvisor’s end-to-end optimization and intelligence platform offers best-in-class algorithmic repricing, strategic Amazon advertising campaign optimization, brand and content management, and intelligence.
Try Feedvisor free for 60-days and see how you can drive demand, profit, and revenue growth across the key areas of your Amazon business. With Feedvisor, private label Amazon sellers can now dynamically price their entire Amazon catalog and yield powerful results for both their Buy Box and private label ASINs.