How to Increase Your Amazon Profits with Repricing Software
We spoke to Chris Dunne at RepricerExpress, Amazon repricing software, to find out more about the Amazon Buy Box, how repricing software works and how you should be pricing your products on Amazon.
What is the Buy Box?
When a customer reaches a product page on Amazon, one seller is usually placed in the yellow “Add to basket” (“Add to cart” in the US) box on the top right of the page.
This is called the Buy Box — and as 82% of all sales on the marketplace go through it, it’s kind of a big deal.
Simply having the lowest price doesn’t get you the Buy Box — there are many factors involved and Amazon is constantly updating its Buy Box algorithm responsible for deciding which seller(s) gets the much-coveted Buy Box position (if a number of sellers have similar metrics then Amazon may rotate them, with each enjoying a period of time in the Buy Box position).
To be placed in the Buy Box, a seller has to have Featured Merchant status. To obtain this, you need to have a Pro Merchant account, exceed Amazon’s standards and be competitively priced. Learn more about how to win the Amazon Buy Box.
When it comes to pricing on Amazon, sellers have two options — they can choose to price manually or automatically with solutions such as RepricerExpress.
What is RepricerExpress?
RepricerExpress is an Amazon repricing tool that reprices your products continuously, even when you’re asleep.
For each product, sellers enter a min and max price they are willing to sell at and create customisable pricing rules. The software will then react to competitors’ prices within your the min and max boundaries and automatically update them based on the various parameters you have set.
RepricerExpress is an Amazon technology partner and use Amazon Web Services to help you reprice as quickly as possible.
What do sellers use repricing software?
There are three key reasons why sellers choose to use repricing software.
They want to save time.
They want to increase their Amazon sales and profits.
They want to win the Buy Box more often (and at a higher margin).
This all sounds great. So, why aren’t all sellers using a repricer?
The number one fear of sellers is that repricers will lower prices too far and get them embroiled in price wars, but the truth is that sellers can’t reprice without inputting minimum and maximum selling prices. If you set your minimum selling price at £7 (including shipping) your price will NEVER go below that.
Some sellers also don’t use repricers as they prefer to do it manually which is fine, but it takes a long time and is not as effective. But most reasonably sized sellers are using some form of automation for their inventory pricing.
RepricerExpress vs Amazon Automate
Some are using Amazon’s free repricer which is good for small sellers but has some major flaws for most sellers.
Firstly, it encourages a race to the bottom, whereas RepricerExpress encourages sellers to reprice upwards (when conditions are right) and earn more profit on sales.
Secondly, the pricing rules are too basic. With RepricerExpress, sellers can decide who they want to compete with and who they don’t want to compete with. With Amazon Automate you could be needlessly lowering your price against a seller who can’t win the Buy Box and losing profits on every sale.
Finally, a lot of sellers also simply don’t want to share their pricing and profit information with Amazon (a potential competitor) especially on listings where they are making a nice profit.
Once you reach a certain level of sales and you have enough money to start investing in software, a repricer will be a wise investment and will soon pay for itself in terms of increased sales and profit.
As with anything new, it will take a bit of time to adjust to but we aim to make our software very user-friendly and have a great customer support team to help you get up and running.
How to price your products on Amazon
Price will always be an important factor in the purchasing decision. Set it too low and you won’t make enough profit, set it too high and you won’t sell anything. You need to set it just right.
To do this you need to calculate the minimum price you are willing to sell your product for by taking into account all your costs and what margin you want to make.
FBA seller, Kev Blackburn, works on a work on minimum 30% return on investment. He holds his prices at 30% or higher (using RepricerExpress) and only adjusts after three months of having stock.
Your goal as an Amazon seller is to generate sales, get product reviews and provide excellent customer service.
What features does RepricerExpress offer?
With RepricerExpress you get a super-fast repricing solution that:
is really easy to set up
offers continuous and blazingly fast repricing
offers multiple ways to increase sales
allows you to compete with different sellers in different ways
can run in Safe Mode (whereby you can try repricing without affecting your live marketplace listings)
works across 11 different Amazon marketplaces
allows you to include or exclude specific sellers
offers infinite customisation of your repricing strategies
can filter competition based on seller rating, feedback, shipping country and dispatch times
auto-enables price increases under common scenarios
comes with a 15-day free trial.
How much does it cost?
Our packages start at £39 a month which includes instant repricing on up to 2,500 listings. We also offer a free 15-day trial so you can find out if repricing is suitable for you without it costing a penny.
For many sellers, repricing software has become an essential tool for their Amazon business. If you’re thinking of giving repricing software a go then check out the special offer below.
Sign up to RepricerExpress today using the promo code “REX10”, and you can enjoy 15 days of Amazon repricing for free (no credit card required), then get a 10% discount on your first month’s subscription.