Time to Focus on Pricing-Repricing Strategy for your Amazon Store
To own an Amazon store and run it successfully, there are various factors like Amazon store setup, listing, Inventory management, shipping, customer handling etc. involved. In this series, Pricing and repricing is another important factor, if not properly handled can affect the health of your Amazon store adversely. Therefore, ecommerce experts always emphasize the appropriate selling price of the products. Also, the skyrocketing competition in the online market itches the sellers and merchants to avail their customers with the best deals and offers. When you set the price that a customer feels affordable, it makes you as their first choice for making a confirmed buying decision. This helps in retaining the existing customers as well as driving new customers to the store. Here, no need to say that more customers mean more sales.
How to set the price of the product?
It is obvious that you have come on the online selling platform to make money and to earn more profits. With your business goals in your mind, you might think that setting higher price for the product will give you an instant and higher profit. But this doesn’t work everytime. While deciding the selling price of any product you need to consider various factors as shipping country, ratings of your product, feedback and market demand. Also, manufacturer and supplier charges are also to be considered.
Once you set the selling price of the products, you must decide the schedule for repricing and adding deals and offers. This attracts customer’s attention towards your products. Some sellers couldn’t figure out the right price and right time to reprice the commodities, that costs them in customer repulsion.
Why do you need to reprice the products?
Repricing is done in order to achieve maximum profit from every inventory and stock in your store. The products that are at the high price or in lower demands can have less buying clicks. While repricing, you can change its cost and add deals and offers to them. This can attract customers and more sales.
Depending on the products, demands and sales, you can change the price of the products and earn from it. Repricing helps in clearing out the inventory.
The price of products those are more popular among customers and are having hot sales can be increased while repricing. As the products have made a space in people’s life, they will surely buy them and might not think about investing few more pennies for the products they need.
Ways in which you can manage pricing and repricing on Amazon:
Manually: Amazon avails its sellers to set their pricing and repricing strategy through Amazon seller central account. You can set the price for every product while listing products. At the time of repricing, through inventory, you can set a new price of the products.
Manually managing repricing of the products can be hectic when you have a long list of products in your store. Every time you need to drag your product list and your competitor’s product for matching the price, everytime Amazon asks you to check box while setting a new price of the product, it requires price calculation for every product that is time-consuming. You have other tasks also in your business. Above all, humans are prone to make errors and mistakes, a silly mistake in price calculation might take you at loss in selling those commodities. Therefore if you love maths, calculations and are intelligent enough to do maths on your fingers, then use manual repricing process. Being practical, manual repricing is only recommended when you have ten or fewer products to update.
Through Automated software: Another and efficient solution for repricing is to use automated repricing software. Amazon allows its sellers to manage their pricing and repricing through the automated software. Using such software reduces time and efforts. The software is programmed in such a way that it intelligently rises or decreases the prices of the products as per the market and your competitor’s price. It constantly checks the competitor’s prices and keeps the products updated in the given schedule. A good thing to work with automated software is you don’t need to take any hassle everytime, just schedule the repricing time and software will do it automatically even you are sleeping or going out in weekends. They are easy to use too. Seller Snap, Xsellco, Feedvisor, Repricer Express, Sellery, App Eagle etc. are software available in the market for repricing.
Though repricing is always recommended yet there are few rules to follow while setting repricing strategy. So, we are here listing out few rules that can help you in making an effective pricing and repricing strategy:
- Constantly analyze the market and competitor’s activities. While updating the new price, you must be aware of the market trends and pricing of the similar products you are selling.
- Set maximum price around which you would keep on changing the product’s price.
- Set least selling price including shipping charge, your FBA cost, inventory cost, profit margin etc.
- Consider the condition of your item- the items that have been in the inventory for a long time can be sold at a lower price to take out from the inventory else Amazon is charging you for using its inventory. Remember Amazon’s inventory charge?
- Consider chances to win the Buy Box on Amazon. Amazon constantly checks the pricing and demands of the products and accordingly optimize its search pages. When you set the right price and customers will click more on your products, you can be eligible to win buy box on Amazon.
Having above said if you too want to play as a winner on Amazon, focus on Pricing/Repricing strategies. With the right price of the products in your store you can boost sales and profit on Amazon. It is the best selling platform that allows you to change your business strategies every time to earn more profit and make more money. Since customers always look for the best price and affordable deal so you can give them more offers that drive them towards you. The precise pricing strategy is the best key to success on Amazon. It contributes to win the buy box as well as the heart of customers. With the price tides controls, you can dive into Amazon's deep Sea.
If you have a gamut of products in your store and finding it difficult to manage the pricing strategy for each product or you are not comfortable in handling the repricing software, then, either take Amazon support or leave all your task to us. We, at evantage, efficiently make the pricing and repricing strategies considering every competitor of your business and come with the best price that adds more customers and sales to your store. With evantage, always stand ahead among your customers and competitors and experience the success on Amazon.