Around 2.5 million price changes occur on Amazon every day, making it the most competitive e-commerce marketplace for sellers. The competition on Amazon has always been quite tricky, and customers are highly affected by price, which is a significant component in most of their buying decisions.
It’s pretty necessary for each business to keep up with all the price changes and make necessary tweaks since price changes from competitors are unavoidable, and repricing may help you stay ahead of thousands of sellers.
Other than using an Amazon repricing tool, other critical aspects of your business include ensuring that your items are precisely and competitively priced, and implementing the right repricing strategies might help you achieve just that!
Let’s take a look at the top 6 winning Amazon repricing strategies to stay competitive, maximize sales and earn more profit!
1. Don’t try to sell the cheapest products.
It’s a widespread misconception that shoppers will rush to your store and buy products if you sell your goods at the lowest price possible. Yes, it might be true- but they will not come for the reasons you think. Suppose you keep on becoming the cheapest seller on Amazon. In that case, soon enough, your customers will begin to connect your items with low quality rather than thinking of them as competitively priced.
Once they build a negative perception of your products, you will eventually lose sales. That’s why make sure you reprice higher than the lowest seller. This way, you can keep your prices competitive and affordable while avoiding being dragged to the bottom.
2. Don’t price your products too high or too low.
If you price your items too high, customers will not buy your products, and the stock will end up sitting in your store, rusting away. However, if you end up becoming the cheapest seller, as mentioned above, you might sell products at the cost of your profit margin. The trick is to identify the sweet spot to make a decent profit while keeping your customers happy with reasonable prices.
If you want to know how to price your products to achieve maximum sales and profit, click here!
3. Focus on choosing the right competitors!
You can’t compete with everybody on Amazon. It’s not only going to lead your profit margin to the ground but is also pointless.
Make sure you handpick your competitors carefully, after considering all the aspects. For instance, if you are registered as an FBA seller, you don’t have to compete with non-FBA sellers. Filter out unnecessary competitors to stay profitable and maintain your prices within the margin you have set for yourself.
4. Get the Buy Box!
If you sell on Amazon, Buy Box should be your primary target. It boosts your sales and helps you earn the profit you need for your business. Make sure you put in all your effort to win the Buy Box and reprice correctly to attain it at the highest price possible.
Here’s what you can do to increase your chances of winning the Buy Box:
- Amazon prefers FBA sellers over any other seller as Amazon controls all the aspects of FBA and knows that customers are receiving excellent support.
- Make sure your fulfilment rate is high, and the rate of your returns and refunds is low.
- You won’t be able to get your hands on the Buy Box if you run out of stock. Maintain complete inventory to avoid losing your sales to a competitor.
5. Don’t make price changes too often.
Changing your prices too often is a waste of effort and will hinder you from being competitive since your prices will be inconsistent. Give your prices enough time to settle and maintain their position. Instead of making random changes to your prices, keep an eye on your competitors’ activities. Following your competitors is the best repricing strategy. Adjust your prices when your competitors do.
6. Get a repricer!
It’s quite challenging to develop the ideal repricing plan that takes all the aspects we mentioned above into account. Furthermore, manually repricing all of your items will be time-consuming and stressful if we are being honest. In order to stay competitive and make your job a bit simpler, use a repricer that offers excellent features and reprices without driving prices to the ground. There are several repricer available in the market and it can be daunting to choose the one that would best suit your business needs. We came across a repricing tool that delivered excellent results for sellers. Check out Alpha Repricer, the automated Amazon repricer in the market that is one of the best. The tool is easy to use and boosts sales and profit both. Try the 14-day free trial to find out more about the tool.
We’ve mentioned all the essential repricing strategies you must implement, but make sure you don’t stick to them only. Experimenting with different rules and techniques can help you figure out which repricing strategies will work best for your business on Amazon. However, repricing regularly enables you to stay ahead, especially on Amazon, where the price is one of the most critical factors in driving sales.
Try different strategies, pick out the best ones, and implement them at the right time! Good luck.