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Introducing the Only Holistic, AI-Driven Pricing Technology for Brands and Private Labels
Stay on top of the latest e-commerce and marketplace trends.
The Evolving Industry Landscape
At Feedvisor, we are relentlessly committed to expanding our technology to support the needs of our customers and continuously invest in the future of e-commerce. Since our inception in 2011, we have been firmly dedicated to providing our clients with sophisticated AI-powered technology and a team of hands-on Amazon experts who provide insights and unwavering commitment to your success.
Until now, AI-based pricing technology could only be utilized by resellers competing for the Buy Box on Amazon. However, the makeup of the reseller model on Amazon is changing. Today, less than 24% of the top Amazon third-party sellers are resellers, versus 31% in 2016. The original categories of many leading third-party sellers have become tremendously saturated, causing many to expand their catalog to include private label products.
The growing pattern of brands and private label sellers migrating to Amazon and establishing a marketplace presence is becoming more of an imperative strategy than just a recent trend. These stakeholders can leverage Amazon as part of their greater e-commerce strategies to drive brand awareness and incremental sales and profits.
According to Feedvisor data, more than half (62%) of Amazon sellers have private label products in their catalogs and nearly one-third (32%) of sellers plan to launch a new private label brand in 2019. When Feedvisor originally created its industry-leading repricing solution for Buy Box-competitive products, price competition was the primary concern of businesses selling on Amazon.
Since then, Amazon has continued to scale, diversify its product selection, and anticipate and deliver on consumer expectations, solidifying its position as the go-to destination for every stage of the consumer purchase journey. In January 2019, we announced Feedvisor’s expanded platform, inclusive of intelligent advertising and brand optimization capabilities, granting brands the ability to create, manage, and optimize their Amazon Advertising campaigns, drive rankings and conversions, and automate time-consuming tasks so they can focus on achieving their growth targets and business objectives.
Historically, however, there has never been an AI-based dynamic pricing solution available for branded and private label ASINs due to complexities with these particular items. As a result, many brands and private label sellers were — and still remain — unsure how to competitively price these items.
Today, Feedvisor is thrilled to announce the launch of ProductSphere™ pricing technology — the first-of-its-kind solution to help you win against the competition on Amazon — now part of Feedvisor’s holistic optimization and intelligence platform for Amazon.
What Is ProductSphere™ Pricing Technology and How Does It Work?
ProductSphere™ pricing is the first and only AI-based dynamic pricing technology that enables brands and private labels to win against the competition on Amazon.
In addition to branded and private label products, any product that does not compete for the Buy Box — even if it is not all the time — such as a product from a specific brand or manufacturer who has the only licensing rights on that particular product, can benefit from ProductSphere™ pricing. If you are a reseller who has competition on your listings, but your competitors are constantly out of stock on many items leaving you with 100% of the Buy Box, ProductSphere™ pricing can yield powerful results.
Through AI-powered technology and machine-learning algorithms, ProductSphere™ pricing maps the relevant competition by identifying competing, complementary, and substitute products on a SKU-specific level. The technology pinpoints who you are competing against, effectively prices your products against those other items in real time, and tracks the influence of those price changes on demand.
With strategy-based algorithms, you can set the pricing strategy for each individual product according to your business objectives, such as revenue optimization, profit, or liquidation. Then, patent-pending, explore-exploit algorithms continuously search for the optimal price point and make real-time adjustments, driving clients’ business goals to fruition.
By being able to manually customize the optimum balance between revenue and profit, you can effectively achieve your business objectives at any stage of the product’s life cycle. The sophisticated technology continuously monitors and optimizes pricing on an ongoing basis. With regard to in-market impact, Feedvisor clients who have implemented the technology have seen a 30% average lift in profit contribution dollars and a 27% average increase in sales revenue.
For the first time, brands and private labels can win against their competitors on Amazon by dynamically pricing their inventory according to their business goals. ProductSphere™ pricing is now part of Feedvisor’s end-to-end optimization and intelligence platform, which offers best-in-class algorithmic repricing, strategic advertising campaign optimization, brand and content management, and intelligence.
When operating in unison, these features fuel the flywheel and holistically drive demand, profit, and revenue growth across the key areas of your Amazon business. With this groundbreaking technology, brands and private label sellers can now dynamically price their entire Amazon catalog and yield powerful results for both their Buy Box and private label ASINs.