Amazon seller space is quite crowded, so when you are using Fulfillment by Amazon (FBA), you have to get your prices right. Everyone constantly changes their price on Amazon as soon as possible, within minutes, just to be able to offer the best deal. This is where Amazon FBA repricing tools can help you. These tools are designed to automatically adjust the product prices, which helps you stay competitive without having to watch the market 24/7. But, of course, simply using it is not enough; you also need to know how to use it effectively. In this blog, we will discuss how you can use the Amazon repricer effectively and the best practices that you can implement to get the most out of it.
How To Use Amazon Repricer Effectively?
An Amazon repricing tool is like having an automated pricing assistant who works to keep your prices competitive. You need to understand its general operation before setting it up for your success. Here are some steps that you can follow to use the repricer:
Step 1: Connect Your Amazon Account
The first thing that you need to do is to link your Amazon Seller Central account with the repricing tool. This way, you can have a secure connection that will allow the tool to access your product listings and understand your inventory. Also, this initial setup is important for the repricing tool to be able to read the current prices and make necessary changes.
Step 2: Define Prices
For every item you want the repricer to reprice, you can set boundaries. For instance, the minimum price is the lowest you are willing to sell the item for to make sure that you still make profit. While the maximum price is the highest you’d like to sell it to make extra profit when possible.
Step 3: Activate the Repricer
Once you have linked your account with the repricer and set the limitations then you can simply turn it on. The tool will then start monitoring your competitor’s prices in Amazon for those specific products. It will automatically adjust the prices based on the rules and the market.
Step 4: Monitor and Adjust
Well, repricing isn’t a one time setup, so you might have to adjust it routinely. Based on regular review of sales data, profit margins, and Buy Box win rate, you can make the changes and optimize repricer settings for more sales. This way, you can refine your strategy continuously with the changes in the market.
(Also Read: A Comprehensive Guide to Amazon Repricing Tools for Arbitrage)
What are Some Best Practices for Amazon Repricing?
Although a repricing tool can handle the automatic price adjustment, you still need to implement smart strategies for successful selling. Here are some best practices that you can follow to get the most out of your Amazon FBA repricing tool:
- Find the Middle Ground: If you set your prices too high then you will have a lot of leftover stock whereas if you price it too low then you will run out without making much profit. This is why you need to find a nice middle ground where you can make profit but also retain the customer base.
- Don’t Sell Too Cheap: It’s natural to think that having the lowest prices will help you sell more. But it won’t be for the right reasons. A lot of customers will associate your products with cheap quality goods instead of being affordable, and you will quickly sink to the bottom.
- Stay in the Competition: Well, if none of the text-book strategies seem right to you then you can simply follow others. So, instead of matching cheapest sellers you can just turn to your competitors and check out what prices they are selling at then match them.
- Use Your Brains: You can use repairing software like Arbitrage Hero which is incredibly easy to use but, you should also put your experience to use. This is because you will be the one giving the initial or base instructions to the tool to do the work.
- Spot the Products: Before you run to set all your items up for repricing, take a step back and evaluate. You need to identify items which need repricing and which don’t. For instance, you can set your highest selling item to be replacing a couple dollars, this will excite your customers to purchase the item.
Bottom Line
Using the Amazon FBA repricing tool is beyond automated pricing; you actually have to implement it smartly and do strategic pricing to survive in the market. You have to set boundaries and understand what actually influences the items so you can stay competitive and win the Buy Box more often. If you are ready to put the best practices in place and be an FBA seller, then you are all set. For any queries related to how to use Amazon repricer effectively or anything else, reach out to us at [email protected].
