Amazon grew to become the giant it is today based on its low pricing strategy. It encourages its third-party sellers to maintain low prices always, which is possible only if you embrace Amazon automation for repricing.
The high traffic volume on Amazon means you have to deal with various customers with different needs. Products in every category must be repriced according to circumstances, like special discount periods and sale events. Besides that, there’s the constant jostle to rank high in Sponsored ads through the bidding process, where product pricing plays a significant role in determining your visibility. These and more reasons compel sellers to focus on their pricing strategy disproportionately, often unsuccessfully, and at the cost of other functions.
You can avoid this workflow overload by opting for Amazon repricing software. It will automate the product pricing process based on your Amazon repricing strategies and other influential factors. Below are the advantages your Amazon business will gain by incorporating repricing automation.
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1. Quickens The Process
Online purchasers are rarely into virtual window shopping; they want their products quickly bought and delivered to them. That means they will likely buy whatever comes up at the top of their search query results list on Amazon. Your products will reach those spots only if their prices are competitive. And in a marketplace with over 6 Million sellers as of 2021, you need to be quick with your pricing changes to beat the competition.
Manually, it is an impossible task to perform. However, with Amazon automation for repricing, you can keep pace with your competition in altering your product prices. The instantaneous changes the software can make across product categories ensure that you won’t lose out on any customer traffic due to your inevitable slowness in performing the task.
2. Ensures Pricing Accuracy
Whenever there’s a person involved in any task, there is a chance of mistakes making their way into the outcome. The consequences can be mild to severe, depending on the circumstance and task. A simple change of position of digits of a product can make it overpriced or underpriced; your customers won’t be able to afford the product in the former case, and you won’t be able to afford the losses in the latter.
Automated repricing software, on the other hand, won’t make such mistakes. It will diligently follow your set Amazon repricing strategies for your products. Sometimes, it may even suggest the best price for a product based on present market conditions. You only have to accept it, and that price will be reflected quickly on the respective product page.
3. Avoids Poor Decision-making
Your business is tight, and you’re looking to gain a few extra zeros to your bank account from each sale. Or you are doing well and don’t see a need to raise your product prices just yet. Whatever the case may be, it’s a given that emotions will come in the way of your pricing strategy decisions. And it won’t always work in your favor, especially if you’re experiencing a downturn and are stressed.
Remaining objective about your product pricing under such circumstances can be a challenge that you may fail. And every such failure will cost your business in terms of revenue and reputation.
Fortunately, doing repricing via Amazon automation software prevents such mishaps from emotions. It will only work on the available data and price products accordingly, something you may need clarification on while being frantic about your pricing choices under duress.
4. Builds Customer Loyalty
The more frequently you offer your products at competitive prices, the more regularly your old customers will shop from you. Every online shopper appreciates pricing stability from a seller as it prevents them from having to search for one each time they want to buy an item at the lowest price.
If you can position your brand as the only one they need to approach to get those low prices, you will ensure customer loyalty. The lack of erratic price swings an Amazon repricing software can prevent goes a long way in achieving the kind of pricing stability you need to build a loyal customer base.
Backed by a well-thought-out Amazon repricing strategy, the software will only add numbers that your customers will find appealing. It can offer special discounts to frequent, long-time buyers for added brand engagement and customer retention.
5. Alleviates Excessive Workload
An Amazon entrepreneur has to be an amazing multitasker to manage the numerous responsibilities that are a part of the job. While it may be manageable in the initial stages, one soon finds that with scale and demand, it becomes near impossible to keep up with all of them.
The quality takes a hit, as does the customer’s interest in the store. With pricing forming such a vital component of good sales numbers, focusing on managing it means sacrificing other functions to their detriment. You can avoid this juggling act by adopting Amazon automation for repricing.
Since the software will take care of most of the tasks associated with the high attention-demanding pricing process, that time you would’ve spent on it gets freed up. You can use it to focus on more important core business work, like building a better business strategy. This redirection of your attention helps give you a better idea of your overall business condition and gain a greater lead in the market.
6. Saves You Money
As an Amazon entrepreneur, you will likely be operating on tight profit margins. Many important functions like advertising and product procurement may eat a significant portion of your budget. Hence, you don’t want to miss any chance at saving money, and your Amazon repricing strategies play into it, especially with repricing software implementing them.
For one, you don’t have to hire a dedicated person to manage product pricing, which saves you on labor costs. Then there’s the prevention of loss-making that accompanies over and underpricing. You also stop losses from being incurred due to not getting to the market early since the repricing software can quickly adjust prices.
Finally, many software vendors offer additional support software and a repricing one that can further save your business resources. That means you are saving money on multiple responsibilities besides the pricing process.
7. Improves Chances of Winning The Buy Box
The Buy Box is your ticket to guaranteed sale as it puts your brand ahead of the others. But winning it against the competition and a volatile, swift bidding process is no small feat. You need the speed and accuracy offered by Amazon automation for repricing to successfully take hold of this important piece of marketplace real estate.
With it, you can simply set the pricing and bidding strategy, and it will handle the rest for you by collaborating with any other software you may have. It will work with Amazon’s algorithm in real-time and try to outdo those used by the competition.
8. Reduces Cart Abandonment
Did you know that hidden and unexpected costs are behind 55% of cart abandonment by shoppers? Furthermore, 21% of shoppers abandon their carts because of unclear pricing. And you don’t want shoppers abandoning their carts, as it will lead to losses and poor RoAS. They may not return to buy those items altogether, or when they do, you may not be in a position to offer the old rice, leading to no sale.
Use repricing software that is fed a robust Amazon repricing strategy, and you will reduce this phenomenon drastically. You will give your customers the pricing clarity they desire for a purchase and the warranted transparency. They won’t face sticker shock during checkout with things like excess shipping rates since the software can sort out such issues.
The popularity of online retail is only growing by the day, drawing in more customers and sellers to marketplaces like Amazon. As a third-party seller on Amazon, you have to be ready to capitalize on the opportunity on offer at present and going into the future. Competitive pricing is one of the best ways to attract traffic toward your eStore. The right mix of competent Amazon repricing strategies and automation software will see your business through any market change and help it thrive.