7 Tips to Boost Sales and Profits on Amazon with Automated Repricing
Editor’s Note: The following is a guest post by SellerEngine’s Maria Pîrvulescu, a member of the Business Development team.
Software tools are very popular with Amazon sellers. Whether it’s for managing orders and stock, optimizing listings or scouting for items, using these tools can be very rewarding. They can relieve some of the pressure on your workflow and help run your business more efficiently.
Using software to reprice your items is an easy way to boost sales and profits. Having developed Sellery specifically for Amazon sellers who need to maintain competitive prices 24/7, at SellerEngine we understand the importance of asking the right price at the right time.
So, we’ve compiled a list of seven tips we believe apply not only to Sellery users, but to all Amazon sellers. Here’s what you need to do if you have an automated repricer:
1. Filter sellers you don’t want to compete with
The price you can charge for an item will inevitably depend on your competition. But there may be times when you need to disregard new sellers, FBM/FBA sellers, mega sellers or competitors with lower feedback scores. Or there may be certain seller IDs that you’d like to exclude from your calculations; easily done with repricing tools like Sellery.
2. Find sellers you want to compete with
Alternatively, you may wish to target specific competitors or to compete only against sellers offering items in the same condition as yours. Look for a software tool that allows you to include specific IDs, nicknames or words to your filters.
3. Ignore sellers who can’t compete with you
Another important factor in assessing and outplaying your competition is knowing what their shipping lead times are. Shipping lead times and charges can influence buying decisions, so using a repricing tool with such capabilities to exclude sellers who can’t match your delivery rates means that you can raise your prices automatically.
4. Find your price limits
The strong point of many Amazon repricing tools is that they enable you to set up your price limits. But many don’t allow you to change these rules for certain items, or they don’t notify you when other settings interfere with your limits. So there’s a real risk that these repricers will bring your prices down unnecessarily.
With Sellery, your pricing rule stays in place, and your price limits still apply. However, your price will never go lower than the minimum price required to keep your margins and markups. This is an essential feature for a good automated repricer.
5. Set your margins and markups
The way many software tools set your price is based on the lowest amount you’re willing to sell your item for (the minimum price). When there’s too much competition, your prices will decrease to maximize your chances of selling, and you may become the unwilling participant of a price war.
With Sellery, things will never go that far. The catch is that you can set your own margin and/or markup for all or part of your inventory, and the minimum price will take your settings into account. So you’d never earn less than this percentage on an order. In fact, you have every chance of earning more.
Setting your minimum price and margin with Sellery
6. Make the Most of Your Time in the Spotlight
When your competitors sell out, this is your chance to raise your price. The sooner you react the more you’re likely to profit. Luckily, performant repricers will do this for you in real time, reacting instantly when there’s a window of opportunity. You should expect nothing less from your repricer.
7. Flag Your Most Important Items
To boost the sales velocity of your best-selling items, you need to flag them and adjust their price. Sellery has got it covered. Simply set your rule for differential pricing, and rely on the repricer for everything else.
Using powerful repricing software tools like Sellery is the easiest way to make sure you apply these approaches. At SellerEngine, we also have a savvy technical support crew with extensive experience in matters of automated repricing. So, if you feel you need additional support setting your prices, we’re here to help.