For third-party sellers on Amazon, it can be difficult to know exactly how to price your products optimally, so they sell efficiently and give you good margins. Pricing used to be an art in retail, but in today’s world it’s a science thanks to technology, specifically, repricer tools.
An Amazon repricer tool detects where a product’s supply and demand curves meet and sets prices accordingly so that product sells better than similar products from other sellers or competitors.
And it can happen in automated fashion, if that’s what the seller wants. The Amazon repricer tools change the price of a product up or down at any given time as it monitors competitors and products on Amazon and other ecommerce platforms.
Some repricer tools also look at product velocity – whether or not demand is increasing or decreasing for an item. If there is a lot of demand, and other sellers are selling out of the product, then the tool might bump up the price to increase margins.
On the other hand, if you have a product that has been sitting on the virtual shelf forever, a repricer tool can fix the price down to an optimal level to sell. Sellers still have full control by setting tolerances in the tool’s settings. For example, if you don’t want your price to go below a certain threshold, you can hold out until demand builds up.
Important Repricer Information and Tips
Repricer tools are especially important and helpful during holiday periods such as Black Friday, Cyber Monday and Prime Day, especially with items that are very trendy such as toys (items that you need to sell out before season is over).
There are two important items to note:
- Each user should come to understand the tool and how it works, or you could quickly reprice your way out of business. Learn how to set the parameters and rules and always keep track of how your item is selling.
- Amazon has built its own repricer tool into the Seller Central app, but at Riverbend, we recommend that sellers NEVER use that tool because Amazon only wants sellers to reduce price so they can maintain a low-price reputation. Their tool typically only allows you to adjust the price one way (down). A good repricer should go both up and down.
Top Amazon Repricer Tools Available Today
A few repricer tools, such as AZSellerKit, are also really good for brand owners. They will look at how much supply you have for your private-label products and determine the proper price to make sure you stay in stock. They can help throttle your sales to ensure you make good margin while staying in stock.
Generally, repricer tools are offered by monthly subscription, and pricing is based on how many products the software has to manage. The top Amazon repricer tools on the market today, include:
- Repricer Express
- Channel Max
If you have questions about how Amazon repricer tools can benefit your business, or which one is best for you, feel free to contact us today.