Repricing is essential in order to set competitive prices without investing more effort, but maximizing profit. This can be done effectively through an automatic repricing tool. A lot of sellers believe that this can help them come up with the lowest price in the market.
However, the sellers having the lowest price not always get the most sales. It would take a number of factors, such as easily available automation technology, huge scale, and some sophisticated ranking algorithms used in the marketplace.
Marketing Repricing Tools
These tools would allow more sophisticated rules than just cheap pricing. They even work without rules and would automatically determine which prices would maximize the total profit. In fact, repricing software would sometimes raise prices.
Choosing A Repricing Tool
Repricing is greatly associated with Amazon, which isn’t surprising to see almost every repricer offer Amazon support. You can get repricing software as a specialist tool to do the repricing or you can get it as part of the integrated marketplace management system.
Specialist repricing tools are advantageous than most single-purpose software because they have only a single function. In this regard they tend to perform the job really well. Likewise, if you want to consider a different service, your experience shouldn’t be disruptive because the lock-in effect is low.
Price Tracking Tools
These tools would enable you to monitor activities of your competitors. It is possible to get data regarding their prices, changes in their catalog, and promotions. However, such tools wouldn’t change your prices automatically. They can only offer actionable data regarding your competitors, which come down to you to make changes accordingly.
The tool will depend on what data you want it to scrape from online retailers and marketplaces to begin collecting information. It will be able to analyze data and create reports that you can use in your ecommerce system.
Rules-Based Vs Algorithmic Repricing
Repricers would allow sophisticated control instead of beating the lowest price. Many would give this control allowing users to define rules telling repricers what to do on the basis of the product.
Rules-based repricing would offer a big amount of control, and this flexibility could be useful. Its only problem is the time and effort that the seller needs to spend, deciding what rules should be used and reconfiguring the system.
Algorithmic repricing is an alternative approach, which you can use with the minimum price acceptable for your products. The system would use its predefined rules, price experimentation, and competitor data in order to get the optimal price. This would maximize sales, while the price stays as high as possible.
On other marketplaces, repricing automatically can be possible, but Amazon uses a common practice with more mature technology. In fact, there are 3 essential factors that influence that, including the Buy Box, the strength of Amazon’s catalog, and its own support for the repricing technology.
Amazon repricers are well-maintained to prevent previous pricing errors and repricer malfunction that occurred in the past. Thus, Amazon would detect potential errors, deactivating affected listings.