Online merchants have been using repricing software for the last couple years to price and sell their products faster. No matter what marketplace you sell on, merchants have been using different types of repricing software. Depending on the needs and requirements you as the seller have, there are a variety of different types of repricing software available to merchants. Not all repricing software is equal, and many are created with special features and functions in mind. To find the right software for you, we take a look into 3 different types of repricing software and how each one functions to better help you.
Amazon Lowest Price
Although this isn’t a software service you purchase, Amazon’s lowest price essentially gives you a repricing guideline. When you first list an item on Amazon they’ll notify you of the current price that item is being listed at. You can either charge more or less. Most sellers undercut this price by a few cents in hopes of attracting buyers to their product. However, Amazon’s lowest price will not monitor prices and alert you when your competitor has lowered their price. This is the basic reprising functionality Amazon offers for sellers.
Cons: It doesn’t offer nearly anything comparable that other RePricing software and isn’t automated. Essentially, you are required to manually monitor and reprice every listing you have, no matter how many items you list.
Automatic repricing is like the grandparents of auto-pricing– It’s been around forever! This very simple and helpful tool enables users to reprice their listings automatically without ever touching their account. Set it and forget it. Although you run the risk of driving your profits straight into the ground for the sake of a purchase, you do, however, gain valuable customer feedback and ratings for your storefront. If properly used, automatic repricing can be a very valuable tool.
Pros: The advantages of using automatic repricing is the buy box. With automatic repricing you have a faster chance of winning the buy box because this software will lower your listing price more.
Cons: The only drawback of using automatic repricing software is entering your product into a price war. What’s a price war you ask? Basically, it’s where every seller listing that product under cuts their price to beat out their competition. The conclusion to price wars? You lose money.
The basis of intelligent repricing is easy— Keep prices low enough to win the buy box, but high enough to gain a profit. Intelligent repricing has become the go-to software of late because it not only automatically extracts your competitor’s pricing, but it puts you in a position to keep your margins. It differs from automatic repricing because it doesn’t just automatically lower every time your competitor does, but instead lower the price just enoughto earn you a profit, while keeping you in the running for the buy box. Intelligent repricing is using certain pricing strategies to win and retain the Amazon BuyBox at the highest possible price.
Pros: The biggest plus to using Intelligent repricing is keeping profits high, while still competing for the lowest price to win the sale.
Cons: The biggest drawback to this service depends on the provider, as most intelligent repricing software companies charge a profit percentage rather than a monthly fee. Sure, you won the sale but your profit is going right back to the provider.