With more and more brands making their presence online, it becomes really tough to compete with pricing listed by existing large retailers over the web. To compete and remain relevant within the competition, repricing has become a necessity these days.
“Product Pricing” is the trickiest challenge for any start-up and medium-sized business owner, because, they fear- if they set the price too high can result in less conversion. On the other side, if they set the price too less can lead to low-profit margin or even losses. Small and medium Indian sellers selling in leading marketplaces Amazon, eBay have already automated their pricing updates.
Automate repricing- Must-have for marketplace repricing
In this post, we will cover the advantages of automating repricing, focusing more on those who sell on the most popular marketplaces that include Amazon, and eBay.
1- Evolution of repricing
2- What does repricing mean for a marketplace seller?
3- Repricing on eBay
4- Repricing on Amazon
5- Popular repricing tools
6- Advantage of repricing tool for marketplace sellers
Here we go:
Evolution of repricing
Repricing has been around since ages- before the advent of the internet, traditional store owners would send a staff member to their competitor’s store who would take a note of relevant product price and then optimize pricing for products listed in their store.
With the advent of ecommerce and the advancement of technology, today, there are many standalone system solutions, as well as, integrated marketplace tools that make price comparison easy and optimal.
What does repricing mean for marketplace sellers?
Price is among one of those few factors that influence a customer’s purchase decision and increases product visibility. Selling over leading marketplace Amazon and eBay, pricing of products are seen to be changing multiple times in a day where sellers compete with each other to gain a competitive advantage and keep sales flowing for their stores.
For those who have to deal with multiple product assortments on different marketplaces- setting price for each product manually isn’t profitable. This is why more and more web-based sellers are taking an advantage of automated repricing software.
Such software are helping many Amazon and eBay sellers to continually and automatically compare their prices to those of competitors’ and optimize them as pet the minimum and maximum value set. Marketplace seller’s offers are disclosed side-by-side in price comparison sites to help online shoppers make better purchase decisions. To win over the pricing strategy a repricing software is helping sellers with the best optimization practices to rise above the crowd.
Importance of repricing automation for eBay sellers
eBay is considered to be a “listing-driven” marketplace, however, there an important factor that decides the seller’s visibility over the marketplace: eBay’s “Best Match” algorithm.
eBay offers a product catalog, however, does not force its implementation to sellers over the marketplace. What this means, there are many sellers who don’t use the catalog and use their own images, descriptions. Doing so, it becomes difficult for any repricing software to track identical products and reprice accurately.
Another factor, “eBay’s Best Match” rewards the seller an ability to show up the best offers at the top, in eBay’s search result. Sellers offering the most competitive product price and excellent customer service will show up at the top.
Importance of repricing automation for Amazon sellers
Unlike eBay, Amazon ensures every all seller’s products are listed and connected to the Amazon catalog. This makes it easy to determine the “Buy Box” winner.
Amazon’s Feeds API is being used by many sellers over the marketplace, that allows Amazon sellers to reprice as much as they want, however, changes are updated roughly every fifteen minutes. The product pages are refreshed and the resulting price changes are shown– including the winner of the “Buy Box.”
What can be an ideal repricing software for marketplace seller?
Repricing software is available in two types: a standalone repricing software or a marketplace repricing tool.
A Standalone repricing tool will have a single purpose that just focuses on repricing. On the other hand, a marketplace repricing tool allows sellers a quick and cost-effective way to understand repricing. These tools are an ideal for start-ups that make it easy to get updates and perform repricing strategy, effectively.
Leading repricing tools that you can consider for your marketplace
ChannelMax Pricing management supports eBay, and Amazon sites including Amazon India and China as well. This software also allows sellers to customize repricing for a one-time starting fee at $49.99. Their reprice speed and frequency is up to 30,000 items an hour.
Appeagle pricing management offers subscriptions that can fit every marketplace sellers budget. Its premium plan that has a fee of $150/month allows a 14-day free trial. It performs continuous re-pricing.
WisePricer pricing management offers sellers with a premier dynamic pricing engine. Being a reliable tool for Amazon,eBay and BigCommerce sellers, this also allows advanced analytics that will help you price with confidence and boost sales performance.
Additional advantages of repricing tool for sellers
Saves time and effort
Whether you are selling few products or have a large assortment listed over leading marketplaces, updating product price one-by-one will eat up time and effort, both. And, in most cases, your pricing gets outdated while you complete the process. Sellers on Amazon and eBay are taking an advantage of repricing tool that frequently automates pricing updates, ensuring sellers are able to offer their products at the most competitive price always.
Manual pricing does not eat time and effort, but also, invites human errors. For instance, you have 50 products listed on Amazon for which you come up with a pricing strategy. Updating each of them on your own- it is natural that mistakes can occur. And, such mistakes can create a real nightmare for you and your brand. Consider a repricing tool to automate pricing and eliminate errors, helping you to generate maximum profits.
Know your competitors and take action
What if I say, you can create your repricing strategy for your products by understanding your major competitors?
If you are selling on Amazon, its tool not only automates price updates but also makes it easy to track your competitors move and set a price to gain the maximum sales and profit opportunities for your brand. Automating your pricing strategy is helpful. However, adopting the ones that offer insights about your competitor’s pricing will help give you a chance to react in the most effective way.
Offer incentives and attract traffic
Higher promotional discounts will allow any retailer to earn increased traffic and sales. However, an ability to come up with such offers for your customers will totally depend on your pricing strategy. The more profits your pricing will allow you, the better chances of coming up with competitive discount offers.
With an automated tool in place, you can set a profit margin and the model will automatically price accordingly. This way, you can smartly target your customers with frequent discount offers, helping you to increase traffic and sales for your brand.
Forecast growth and profitability
A dangerous move, but, there are many business owners who still practice guesswork in their forecasting. However, in maximum cases, results don’t match their predictions.
The key to a successful forecast is measuring data from the past. Automating your process will help you save time, eliminate human errors, increase margins, and track your competitors, however, it will also allow easy and quick access of previous data and analytics to predict profit and growth opportunities for your brand.
A common frustration among marketplace sellers is not being able to perform a competitive pricing strategy for their products. While many still perform the traditional way of manual pricing their products again; automation is providing a positive return on investment for many sellers on Amazon, eBay and other marketplaces.