Whether you’re a small, medium, or large sized seller, correctly pricing your products on Amazon is extremely important. That’s why most Amazon sellers are familiar with and started using auto-pricing software.
Finding helpful and reliable selling tools aimed at assisting merchants on Amazon isn’t as easy as many people think. Most of these marketplace services and software can often be overpriced and not produced the intended results needed. When looking for effective and accurate tools for selling on Amazon, Teikametrics.com is the first place many people look. Their team of qualified professionals have designed and built quality software specifically constructed for Amazon sellers to boost profits. Teikametrics is also supported across all Amazon Marketplace platforms and proven to generate millions of dollars in sales for some of the largest global online retailers. Teikametrics for Amazon offers everything needed to beat the competition and increase profits whether you’re a small business owner using fulfillment by Amazon or selling thousands of products a day, Teikametrics is your answer.
Get ahead of your Competition with Intelligent Re-Pricing Software
Tired of manually supervising your storefront? Appeagle.com has completely eliminated the need for manual pricing and given sellers a new outlook on pricing items correctly, and profitably. Founded in 2009, Appeagle has been providing the most profitable inventory and repricing tools compatible for online marketplaces like Amazon, FBA, eBay and Buy.com.
Pioneering Profitable Software Services for Amazon Sellers
For over 10 years SellerEngine has been making it ridiculously easy for sellers to profit through Amazon.com. They first introduced automated pricing and inventory management tools in the early 2000’s and have since revolutionized how people sell on Amazon. Besides offering innovative software services, SellerEngine.com thrives on educating and supporting thousands of sellers who want to run a successful business through Amazon. Supported in 8 global Amazon Marketplaces, SellerEngine.com is your answer for reliable, customizable, and powerful software.
“We want to make you feel like selling on Amazon could be just as easy as buying on Amazon.”
Third-Party Software made EASY
Core Technologies has been delivering state-of-the-art software since 1995 with one goal in mind- Fair priced software that is truly useful to consumers. Their objective is to provide vital and useful software that is truly time-saving and profitable to it’s customers. For 17 years Core Technologies has done that while successfully helping thousands of customers with their mail order business. Unlike other selling tools, Mailware is a complete back office order management solution for all types of online merchants. Whether you’re completing orders, handling inventory from multiple warehouses, or keeping track of accounting, Mailware is your one-stop solution for third-party software. Say goodbye to complex software and hello to Mailware.com!
#1 Automated Re-Pricing Solution for Amazon Sellers
Since day one Feedvisor has been rapidly increasing sales and profits for Amazon sellers with their automated re-pricing platform. Feedvisor recently unveiled their new automated auto-pricing software with the introduction of Intelligent Re-pricing. This easy-to-use software is completely web-based which benefits users immensely by not having to install anything onto their computer. Stop wasting time and money guessing prices and let FeedVisor systematically improve your sales today!
All-In-One Marketplace Manager
As eBay continues to undergo their dramatic transformation, many sellers have started flocking towards Amazon to increase their sales. To make the process easier and less uncomplicated, SellerExpress has created an all-in-one marketplace manager capable of doing just about everything for you! For the last ten years SellerExpress has been providing the latest and greatest software solutions for some of the largest multi-channel retailers in the world. With a complete inventory management, order fulfillment, and auto-pricing program, SellerExpress.com is your one-stop shop for selling successfully and conveniently on Amazon.
What Does your Ecommerce Business Need?
Whether it’s a small start-up business or million dollar company, merchants are continuously looking for new and efficient ways of increasing sales. From new marketplaces to integrated selling tools, business owners are now turning to technology and software for answers. With over 20,000 customers and 2500 online merchants experiencing success, Monsoon Commerce has become the #1 ecommerce solutions provider for online sellers and merchants. They provide business intelligence and insight so merchants can grow their business efficiently and successfully.
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.
As an Amazon retailer, what should my target profit margins be? Should I be aiming for keystone retail margins on Amazon? Should I be setting prices to make the same profit margin on all of my products?
As any successful retailer in any market knows, performance is all about profit
margins – How much are you taking home after the customers have paid you for the goods? This bottom line question must be addressed to execute a successful merchandising strategy on Amazon. In this article, I will explain how Amazon retailers should recognize the shift of commodity trading at the core of their business and need to be focused on dynamic pricing to be successful.
In the world of e-commerce, where retailers have the potential of addressing very large demand from potentially millions of Amazon’s customers with low cost, optimally adjusting prices to match demand can have a tremendous return for even smaller retailers. In fact, in a commoditized market where customers focus on price and speed and cost of delivery, size truly doesn’t matter – Amazon enables any retailer to compete for the same customers as the likes of Best Buy, Toys-R-Us, or Macy’s.
As more vendors seize the online opportunity on Amazon, competition increases and as the basic laws of economics dictates, prices tend to decline. Unlike a traditional brick-and-mortar retail scenario, consumer demand is not limited by foot traffic and product pricing is not rigid. E-commerce retailers need to set prices fluidly often several times a day to be competitive on a national or global scale. It’s purer supply and demand economics – competition and efficient supply means many products are commoditized, a retailer who has the lowest price for a hot product on a marketplace shopping site such as Amazon may capture hundreds of sales for a single item. Pricing optimally can mean thousands of even millions of dollars a year from a single product.
The Amazon opportunity and its economics are revolutionizing retail. With only the cost of commission paid only when a customer purchases, any retailer can offer virtually any product to the world’s largest customer base. With extremely low barriers to entry, Amazon’s simple formula works, the Amazon ecosystem provides the customers and transaction platform whilst the retailer provides the commodity.
So, now you’re marketing your products on Amazon to millions of potential customers only to find you’re competing against a dozen people doing the exact same thing with the same products. Should you lower your prices?
With any rational customer naturally purchasing from the lowest priced merchant – the question relating to pricing is ‘How Low Should I Go?’
When selling on Amazon solving the puzzle of dynamic pricing and variable profit margins really matter. If I try and sell everything at a 50% Gross Margin, I might be missing a hundreds of sales as another retailer is will to go down to 40%. Should I go down to 40% too, or perhaps 20% of even 10%. After all, 10% Gross Margin from a $100 product selling 50 units a day is a far better for the bottom line than a $10 product selling at 50% Gross Margin selling 1 unit per day.
A savvy Amazon trader would recognize this opportunity and adapt rapidly. At Teikametrics we help clients with this process, we call this ‘Floor Analysis’. By analyzing the lowest Gross Margin thresholds, a.k.a. ‘the floor’s for each product, a vendor can balance volume versus margin. This is the key exercise required with the configuration of a successful Amazon Repricing strategy.
The end result is many variable margin sales which are aggregated to create one combined bottom line profit average across the catalog. This is a portfolio approach similar to an active trader of public stocks and shares. Individual stocks are traded at different velocities but performance is measured based on overall portfolio returns.
As technology evolves and marketplaces like Amazon become more competitive it’s the adaptive and dynamic retailers that will survive – a new approach to pricing is necessary and those who fail to recognize this will be left behind as the nimble and intelligent companies embrace the opportunity.
About Alasdair McLean-Foreman
As the Chief Executive Officer, Alasdair is responsible for Teikametrics’ overall business strategy and day-to-day operations. Alasdair founded an e-commerce company in his dorm-room which grew into a multi-million dollar company selling high-end sporting goods. He also founded the weight loss and fitness company Traineo and has built and provided e-commerce solutions to large organizations including Newscorp, The Times of London, L’Oreal, and The New York Marathon.
Alasdair earned a Bachelor of Arts in Economics at Harvard University where he was captain of the Track and Field Team and a member of the Great Britain and England national track teams.