How Amazon Third-Party Sellers Gain a Competitive Advantage with Repricing Software – Chris Dunne, RepricerExpress
How Amazon third-party sellers gain a competitive advantage with repricing software
Price is so closely linked to volume of sales and product visibility on Amazon, that third-party sellers need to continually ensure their products are priced competitively to keep sales flowing—and if you have hundreds or thousands of products, doing this manually, isn’t viable.
That’s where repricing software comes in—it allows third-party Amazon sellers to continually and automatically compare their prices to those of competitors’ and adjust them within floor and ceiling limits set by the seller—in fact, you can’t reprice your stock unless you have set min and max prices, as this tells the software never to price below or above your limits.
The main objective is to win the Buy Box or rank highly in search results displayed on the ‘More Buying Choices’ box or ‘Offer Listings Pages’
What’s the Buy Box?
On the Amazon marketplace, both Amazon and third-party sellers are responsible for selling products. When a customer reaches the product page, Amazon places one seller’s details and price in the Buy Box (this could be Amazon or any eligible third party seller).
Because the Buy Box and its ‘Add to cart’ button is the first option a buyer sees, any seller that wins a spot in the Buy Box, will be guaranteed more sales, in the majority of cases. In search terms, the Buy Box is effectively the first result of a customer’s search for a specific product, and the one that they are most likely to click to complete a purchase.
In 2013, Amazon’s revenue was close to $75 billion, with more than $60 billion of that going through the Buy Box—and with half of those Buy Box sales being attributed to third-party sellers.
How can l win a spot in the Amazon Buy Box?
Your eligibility to win the Buy Box is linked to your seller performance. When you exceed Amazon’s standards you’ll obtain the Featured Merchant status—a prerequisite to Buy Box eligibility.
When that’s in place, your placement within the Buy Box can be largely governed by price, which is why anyone seriously selling on Amazon needs to put repricing strategies in place in order to consistently maintain healthy sales.
How does it work?
Certain solutions use Amazon’s new Subscriptions API to access price and seller information. Repricing begins when one of the top 20 sellers for an item with the same condition changes price or other important info like handling time, shipping price etc.
How should I price my stock?
Sellers should use a pricing strategy in line with their overall business strategy. It is important that your repricing software allows you to decide who you want to compete with and also who you don’t want to compete with.
There isn’t one quick fix for all sellers since everyone is different, but what you do get with a modern repricing solution is the ability to match your repricing rules to your own business, so you’re competing only where you can win a sale.