Selling on Amazon becomes tougher if you have fierce competition. To stay successful, you must increase your visibility, offer the best prices and maximize your sales. However, to increase the number of sales on the platform, it is crucial to develop a solid pricing strategy that can help you attract customers and win the Amazon Buy Box.
Winning the Amazon Buy Box helps you become the top Amazon seller within your product category, and ensures that you get most of the sales. But how do you make sure your products are competitively priced 24/7? Price changes occur on Amazon frequently and to keep up with these fluctuations, you must come up with the perfect repricing tactics to win over your competitors.
Here are a few repricing tips and strategies that might help you stay profitable on Amazon:
1. Make sure the repricer knows its limits
The first step you might want to take is to set the minimum and maximum price limits. Why is it essential? Because it helps in protecting your profit margins by not letting your prices go too low. Moreover, the repricer will automatically increase the prices till the limit you’ve mentioned when the product is in demand or other sellers run out of stock.
In short, setting min/max price limits ensures that your repricing software understands how far it can go in terms of price when competing with other Amazon sellers.
2. Filter out the competition
Choose who to compete with. As an Amazon seller, the chances of you getting into a price war are pretty high. There will be tons of competitors trying to stay ahead of you, and they will try to bring you down the list. However, it’s necessary for you to understand that you can’t get into competition with each seller that stands against you. Start by filtering out your competition and decide who your direct competitors are. Once you are done selecting them, choose which sellers you must ignore to avoid getting into unnecessary price wars.
If you are fulfilling your orders through FBA, then don’t bother competing with FBM sellers. Filtering out your competition will help secure profits and strategize better.
3. Buy Box needs to be yours
Boosting up your sales within a short amount of time requires you to win the Amazon Buy Box. Smart repricing can help you keep your prices competitive 24/7, taking you one step ahead of winning the Buy Box. However, there are a few other requirements you must fit in to get your hands on the Buy Box:
·Become an FBA seller instead of shipping your products yourself. Amazon prioritizes FBA sellers while assigning the Buy Box.
·Make sure your Amazon metrics are on point. Try to deliver on time, have a high fulfillment rate, and keep your customers happy and satisfied with your products.
·Never run out of stock. Keep a check on your inventory and as soon as you realize that you might run short on a product, order it without wasting any time.
·Reprice according to the condition of your products
If you are selling used products, don’t compete and reprice against the sellers selling brand-new items. You must know the condition of your products and reprice accordingly. Moreover, if your products are used, ensure you are offering them in good condition to keep your customers returning to you. As mentioned above, you don’t want them to be unhappy!
4. Consistency is the key
Trying and experimenting with different repricing strategies can be tempting but don’t change your repricing rules or strategies frequently. You will never be happy with the results plus your prices won’t get stable. It’s better to set the rules and let the repricer do its job. However, try and understand what your competitors are doing and reprice accordingly. It will save you time and effort in figuring out the right strategies.
In conclusion,
Understanding how to sell better on Amazon isn’t a one-day game. It is going to take time to figure out how to recognize competition, stand against it, and win to get sales. The right repricing strategies, however, can help you along the way. Make sure to follow the best ones and earn maximum sales on Amazon! Good luck.
