A free Amazon Repricer tool is provided by amazon for the sellers who sell on amazon platform. But let me tell you with free stuff there are always limitations. Limitations which holds your margins from growing. Most modern day Amazon Repricers like BoxNsights employ advanced algorithm and provide high configurability that help the sellers grow their sales and margins while retaining the Buy Box.
Why their is a need to go for Modern Amazon Repricer if free Amazon repricer is present??
Free Amazon Repricer is a race to bottom game. Modern Day Amazon Repricer is race to win in each possible way. Win in each possible way means not racing the prices to bottom but setting the right price to gain buy box. Once Buy Box is achieved it never settles, it keeps on looking for opportunities to increase the margins wherever possible.
- Free Amazon repricer provides only two options, either to compete with Buy Box competitor or with the lowest competitor.
- Targeting the lowest may work for new sellers but as you get established, targeting the lowest would mean taking the hit on margin and competing with sellers who would not even win Buy Box (due to rating or other factors)
- Real good option is to target Buy Box, but here if you happen to win Buy Box you stay at the lower price for ever having a huge hit on the margin
- For example if your price for a product is Rs 1000, if competitor reduces to Rs 950, free Amazon repricer will help you get to say Rs 949 (if you have set a rule to be below Buy Box by Rs 1)
- Now you are in Buy Box but if your competitor goes out of stock or increases price to Rs 1100, then your price will still be stuck at Rs 949 which is a significant hit on margins
- Modern day Amazon repricers on the other hand will follow the competitor and change the price to Rs 1099 which while retaining the Buy Box increases the margins significantly
- And all this is done in realtime basis
Calculation of Minimum Price
- Most sellers know about the various overheads like taxes, amazon commision, collection fee, shipping charge, packing charge, etc that are incurred while selling on Amazon but they dont accurately account for the same as the the calculation to get exact value is complex.
- If overheads accounted are more than the actuals then this can lead to reduction in sales as you do not reduce the price enough to capture Buy Box even when you can.
- On the other hand if overheads accounted is less than actuals then you in fact incur losses. Look at it this way, if you are selling even 10% of your products on loss, this could lead to overall loss of around 15-20% as these products sell higher. This directly reduces your margin by 15-20%.
- You would be better off not selling these product as you could have made more profits.
- Modern day Amazon repricers like BoxNsights accurately account for overheads and never allows any product to be sold at loss (unless of course you want to get rid of the deadstock).
- The application thus ensures you Grow and Grow Profitably …
- Free Amazon repricer provides limited configurations.
- Modern day Amazon repricers on the other hand provide a highly configurable system which you can tune to implement any kind of Pricing Strategy that suits your business.
- The application also provides loads of pricing data at your fingertips which helps in analyzing the pricing strategy in place and continuously evolve the same based on changing competitive environment
Work flow of a modern day amazon repricer
Seller on amazon platform is always worried about How to Increase Sales? How to Win more Buy Box? How to gain more Margins when in Buy Box?
As a sellers on Amazon you face stiff competition on every product you sell. The aspect which you have in control is Pricing. You can make use of the pricing point to beat your competitor, but what if you have a large number of sku’s? You would not be able to track and update the right price and will cause either a lost opportunity in sales or lower margins.
Modern amazon repricers can come handy here. For example BoxNsights has a unique pricing algorithmic engine, which works on the highly configurable rules and the real time insights, which helps you to set the right price not the lowest ensuring higher sales at higher margins.
The algorithm considers multiple aspects including the competitor ratings, number of ratings, fulfilment channel(FBA) used by competitor, the amazon overheads and many more while deciding the right price. Also it acts on realtime basis so that the opportunity to increase sales or margin is not lost even for short time.
Overall, modern day Amazon repricers surely provide significant value add over the free Amazon repricer. The best way to analyze the same is to take first hand experience and evaluate the impact of the same on your business. Some of the modern Amazon repricers like BoxNsights also provide a 15 day free trial.