28 Jul-2015

Why Repricing is the Key to Being Competitive on Amazon – Angelica Valentine, Wiser.com

Why Repricing is the Key to Being Competitive on Amazon

Amazon accounted for 23% of all US eCommerce sales in Q2 of 2014. If you’re wise enough to be selling on the marketplace, then it’s time to reconsider your pricing strategy. One out of date price can lead to a decrease in your bottom line. Luckily with the help of repricing, it’s possible to automatically update your pricing in real-time to maximize profit and sales at all times.

The pricing strategy behind this is called dynamic pricing in which businesses change pricing based on internal and external factors (such as stock levels and competitor pricing). Amazon itself has brought dynamic pricing into the spotlight, as numerous reports have revealed that the behemoth changes its prices every 10-15 minutes on certain items. The reason why it’s important for sellers on Amazon to learn from their marketplace’s practices is because it’s also their fiercest competitor.

Unlike eBay and Newegg, Amazon also sells products on its own marketplace. Amazon is an intense competitor because it has the ability to sell items below cost whenever it is deemed necessary. After all, the retailer has the sales volume and resources to cover the losses. So how can retailers reprice to stay competitive and drive sales?

It all depends on how many SKUs they have. Many retailers choose to reprice at least once a day. A seller with fewer products could possibly reprice manually. However, a higher SKU count generally means more potential headaches. That’s why retailers of all sizes choose to use repricing software to automate the process.

Here are a few reasons to reprice often on Amazon:

  1. Amazon and other competitors do it constantly. This isn’t an endorsement for price matching, because that can be a quick race to the bottom. Repricing has to be done within reason. By that I mean retailers need to have minimum and maximum prices to make sure they are still upholding their brand ideals with each price they present to shoppers.
  2. The market never sleeps. Online retail is a 24/7 business and retailers need to be competitive, even when they aren’t near a computer. That’s where repricers come in. Say there’s a big shift in supply or demand; a repricer can calculate a new price to save dwindling stock or boost low demand.
  3. Increase Buy Box odds. Did you know that repricing can help you win the Buy Box and stay there? No one knows the exact science behind winning the Buy Box, but there are a few factors that go into it, like pricing and seller rating. A good rule of thumb is to lower your price until you win the Buy Box, then raise it incrementally until you lose it. Staying aware of the range of prices that are Buy Box winners allows you to charge the maximum price while still cashing in on the 82% of sales on Amazon that stem from the Buy Box.


The reason that many Amazon sellers choose to reprice is because it’s a lucrative undertaking. Cutting prices slightly can help move more products and improve sales. Raising prices can improve margins, especially when your only competitor runs out of stock. Repricing holds great potential and many sellers are catching on.

What’s holding you back from implementing a dynamic pricing strategy?

About the Author
Angelica Valentine
Content Marketing Manager