Amazon has an approximate $60 billion of value in Buy Box. Sellers who have their products listed on Amazon are always on the lookout to improve sales and with that profit margins. There are lot of tools available in the market, which help sellers to achieve above goals. In this blog, BoxNsights talks about how repricing tool functions and its play in improving online business and profits.
What is a Repricing Tool?
Repricing tool like BoxNsights allows Amazon sellers to compare prices of their products with other similar products or competitors’ products and allows them to automatically adjust their pricing as per their own set upper limit and lower limit.
Product visibility and sales performance on Amazon are closely linked with the product prices. Sellers have to aggressively monitor prices for their own products to ensure that they are priced competitively. Doing this manually for every product is a very pain staking process; and with thousands of products listed, simply isn’t viable.
Repricing tool helps sellers to set the minimum and maximum selling price for their products. When Amazon sends a price change notification for any product, the software will automatically adjust the price with the goal of winning the Buy Box or ranking high in search results.
What’s the Amazon Buy Box?
Buy Box is a box on the product detail page where customers can begin the purchasing process. Usually a single product is offered by multiple sellers. If there is more than one eligible seller for a particular product, they may compete for the Buy Box for that product.
Amazon has complex algorithms in place, wherein sellers must meet performance-based requirements to be eligible to compete for the Buy Box placement. Any seller with a placement in the Buy Box, will be almost guaranteed to increase sales and profits. If taking an example of Google Search, Buy Box is the first result that appears for customers search for a specific product, and the one they are likely to click on the most.
Eligibility to win the Buy Box
Professional sellers who meet the performance-based requirements get placed in the Buy Box. But there are a lot of sellers who meet the necessary requirements and it all boils down to the pricing strategy. This is where repricing tool plays an important role. It can help sellers to govern their own product prices and stay competitive in an ever-changing marketplace.
Trust factor with Amazon as a Brand
Amazon has a huge audience of “ready to buy” consumers globally. Couple that with the fact, that these consumers trust the website and can purchase with one-click. This is one of the reasons, sellers find success on the marketplace.
Biggest fear of using a Repricing tool?
Sellers fear that the Repricer would lower the prices too far and get them embroiled in price wars. This is not entirely true. A Repricer only works when you set the minimum and maximum price for a particular product. For example, if you have set INR 230 as a minimum price for a shirt (including shipping), then your price will never be pushed below that.
Modern Repricing tool like BoxNsights will increase your prices where possible. For instance, if you set minimum and maximum price for a shirt as INR 230 and INR 480 respectively. At some point, your competitor sells out of stock and there are no sellers that meet the performance-based requirements. In this scenario, the Repricing tool will push your price up to maximize your profits.
There are many sellers on Amazon selling the same products, but almost all of them are different businesses with their own defined goals and inventory. A modern Repricing tool like BoxNsights gives you an edge over your competition with the ability to reprice your products and sell your stock in the way you need. This coming Valentine’s Day is a prime example where novelty & gift sellers will be ready to maximize their profit margins, and will have repricing rules in place to do so.