E-commerce is on the rise. The total retail e-commerce sales worldwide in 2017 was $2.3 trillion, which may double by 2020! Understanding the essentials of price optimization in e-commerce can help you ride its waves too!
Competition among sellers on platforms like Amazon and eBay can get very intense. There are more than a million third-party sellers on Amazon alone, so you have to be exceptional to stand out. Here, factors like price optimization can influence the success or failure of your business.
What Is Price Optimization?
In simple terms, it’s about finding the pricing sweet spot - the maximum price that the customers are willing to pay. Understanding the essentials of price optimization is crucial for your business. If you price your product too high above your competitors, you will not make any sales. In contrast, if your price is too low, you might make a lot of sales, but you won’t be getting much profit out of it.
Price is the top influential factor for any customer’s purchasing decision. It usually leads to catastrophe if the seller can’t offer a competitive price. This is where ‘repricing’ comes into play. It involves investigating the prices of competitors and then adjusting your own listings accordingly.
If you have a small number of listings, you might be able to do so manually. But when your listings grow into tens or hundreds, manual repricing will become a major headache. But there is an easy solution to this - repricing software!
What Is A Repricing Software?
Repricing software keeps your prices competitive. It compares your price with your competitors' and automatically adjusts them. You input minimum and maximum limits and rules about, and the program will raise or drop your prices accordingly.
Price optimization doesn’t mean you should always have the lowest price. You will earn a smaller profit margin if you opt for rock-bottom prices and customers may think you have a low-quality product.
This is where automated price optimization shines. Repricer tools like Seller Republic automatically reprice your Amazon and eBay products based on your price strategy. It’ll adjust the price of your product within your set limit and increase your chances of winning the Buy Box.
Benefits Of Using Repricing Software!
Repricing software can make your life hassle-free and convenient. Here are some reasons why you should consider using one:
- Saves time: It’s too time-consuming to manually adjust your product prices every time your competitors’ prices fluctuate. You'll have to be on the constant lookout for changes to stay on top. Repricing software can take over this time-consuming task, leaving you free to focus on other parts of your business.
- Higher chance of winning the Buy Box: Most of the sales on Amazon are from Buy Boxes. You can boost your sales volume if you can win it. The repricing software Seller Republic has a Max Price Reset feature that will help you get the Buy Box at the highest price possible!
- Increase sales: You can offer attractive prices to the customers with repricing software. This leads to more sales, and consequently more profit!
- Avoid price wars: You can protect yourself from a price war with repricing software. It understands when a competitor’s product is being sold too cheap, and will not reprice your product.
Even though repricing software can help you make a lot of money, not all of them are equal. Let's take a look at one of the best repricing tools out there - Seller Republic!
What Makes Seller Republic Unique?
- It’s affordable: Seller Republic starts at only $8.95 per month and has a free 14-day trial! You don’t need any credit card for the trial, so try it and see how this repricer can transform your business!
- Easy to set-up and use: It is incredibly easy to use, and you can set it up in 3 minutes. Update the details of your stock, the maximum and minimum prices, and you're good to go. It also offers a host of advanced features if you want to take a hands-on approach!
- Continuous repricing: Seller republic offers the fastest 24/7 continuous repricing. Instead of repricing at set intervals, it does so at every instant. If any competitor changes the price, it immediately starts processing the price updates!
- Win Buy Box at a higher price: It comes with a built-in Buy Box winning strategy. The “Max Price Reset” feature allows you to win the buy box at the highest price possible.
- Condition repricing: Seller republic can reprice against differing condition types. This is a useful tool for non-new product sellers, as it can reprice new against old products!
- Regular 'new' product checking: It checks for new products every 2 hours. This is very useful if you have a quick moving and large selling account!
- Instant profit calculator: It has an optional ‘cost’ field that you can update manually or by bulk CSV upload. This will show your cost and profit in the main listings page. You can also see your profit or loss instantly when you enter a value in the cost field!
- Bulk min/max price setup: You can set the floor and ceiling price by a percentage amount for the listings with updated cost fields. There is no need to go through them one by one!
Most purchasing decisions depends on the price. This is especially true for competitive markets like Amazon. Repricing software might be a topic of debate because of isolated incidents and misconceptions that it’s all about price cutting. However, the truth is that repricers can optimize your price and help you in not only gaining sales but also getting the highest profit margins possible!