Staying ahead of the game as an Amazon seller is not an easy feat. Regardless of how little or big your inventory, pricing your items competitively is one of the best ways to increase sales. If your product costs too much, it will fail to attract customers. If your product costs too low, you will hardly make a profit. So what are the best repricing strategies you could implement as an Amazon seller for the new year? We have a few to share.
Effective Repricing Strategies for Q1 2019
Set Price According to the Competition
Prices on Amazon are constantly changing. As the demand in Q1 lowers down as opposed to the previous quarter, the competition slows down as well. Find out how much your competitors are pricing their products. You can price your products lower, higher or the same as your competitors. Then set up your own repricing rule.
Looking at the sales trend in Q1, last year’s report from Forbes shows that Amazon saw an increased sales in Q1. “Net online stores increased, in the first quarter of 2018, by 18%. Net subscription services sales increased by 60%.”
Using the data above, it’s important to keep a watch on when the competition starts to build up. Some customers do post Christmas shopping in January, while others redeem their Amazon gift cards in the same month.
If you want your product to stay competitive, price your items lower than your competitor’s price. Doing so gives you a better position to win the Buy Box. If you’re comfortable with how your products are selling even if it’s above your competitors’ price, then leave it as is. The trick here is to find a stable middle ground where you can profit decently and still maintain a good customer base.
Don’t Race to the Bottom
Sure, setting your items at the lowest price can capture a shopper’s attention. However, not everyone who shops in Amazon looks for the cheapest deal. Many shoppers look at the feedback and review rating, as well as, product quality, packaging and shipping time before they purchase an item.
Even if it means paying more, customers are more likely to choose a seller who has better records than a cheaper price. Additionally, wise shoppers have this preconceived notion that the lowest priced items are usually the ones with poor quality and customer service.
Therefore, instead of chasing the cheapest price, price your items 1.5% above the lowest seller. In doing so, you are still cheap enough to be competitive but won’t get caught up in a race to the bottom.
Invest in a Quality Repricing Software
Repricing software, like what we have in SellerMobile, allows Amazon sellers to automatically match their product prices to competitors and alter them accordingly. When you have a multitude of products to reprice, doing this manually on a daily basis becomes impossible.
This is where SellerMobile’s algorithmic repricing tool comes into play. Through our software, it allows you to efficiently manage your product’s prices by adjusting them regularly, even when you’re asleep.
Further, the beauty of having an algorithmic repricing tool is that it adjusts the prices between min/max price you set for your products. You’re guaranteed that the price stays within the margin you assigned and never outside the range you’re comfortable with.
With these three quick strategies, your business can remain in good standing even after the holiday rush.