It is a normal market tendency that in order to make a mark in the market sellers compete with each other by repricing their products. There are a lot of sellers who cut the competition by dropping their prices by $00.01 or 00.01 pounds. When this is what sellers do it is considered as repricing.
Based on the different Amazon prime pricing strategies this repricing can be done in several ways like;
Manual repricing is the process where as a seller you are free to decide how you reprice your products. This process requires you to amend the prices manually through the Amazon seller central channel. The manual repricing strategy will only work for those sellers who have a limited range of products that are being displayed on the platform.
The advantages of manual repricing is that you have complete control and opting for manual repricing gives you a better understanding of the market and your competitors as well. The other repricing strategy that you can opt for is with the help of the Amazon repricing tools.
For those sellers who have a wide range of products on display, it becomes challenging deciding their pricing strategy based on manual repricing. To give them the best understanding of competitive pricings that they can follow there are a number of tools like RepricerExpress and RepriceIt. Tools like this will auto populate a list of all competitors who offer the same products and inform you of their pricing strategy. With these tools you can also set a maximum price limit so that the system does not go below the profitable levels.
Repricing can also be done as per the rule based pricing system which is available. This strategy is quite similar to the manual one in which the seller has a control and sets the rules. They can establish a price limit at which the product price will be undercut based on the competition and the demand of the product as well. The only downside is that this is a bit challenging because the seller has to set it up manually.
Another common repricing type is the algorithmic repricing, which is a far more advanced tool that gives you multiple options of how to reprice your product based on in depth competitor analysis and pricing norms at that time. If used correctly this Amazon seller pricing strategy can be the most beneficial and can give you the best ROIs.
For Amazon repricing to work efficiently it is crucial that there is an algorithm that maps and tracks all the price drops that take place on their platform. Amazon has an inbuilt that recognizes instantly when there is a price change either in the price of the product or the price of its shipping. As a seller who has several products on display it is a must that you make use of this Amazon price drop algorithm that will inform you instantly if there is any fluctuation in the prices of products that are similar to yours.