The customers when searching for any product online, they compare everything on every marketplace right from quality, quantity to price and even shipping charges. To become their first choice from the available options, you need to be cost-effective in every way to the buyers. Therefore, the market gurus suggest updating the pricing and repricing strategy every time in a scheduled time-period.
Nowadays, the automated tools are trending in the online market. If you are selling online, be it Amazon, Walmart, eBay or any other online platform, you must have heard of those tools for pricing and repricing. The tools that automatically update the price of your products compared with the market price of your products. Most of the sellers find it useful to integrate such tools with their seller central account while some bang over the use of these tools. Before going to get the pros and cons, first, let us know what these automated repricing tools.
What is Repricing Tool?
- A repricing tool is used to set or update the price of your products, you are selling on Amazon or other marketplaces as per the data feed into them. This tool uses the data that reveals the information about the competitors’ product’s prices and according to which it updates the price of your same product so as to compete in the market in the better way.
- The automated tool changes the price of the product. It either increases or decreases, depending on the algorithms and calculations, it is supposed to work on. This sometimes may inverse the impact over the sales (But 70–80%, the results are in the favor of the retailers).
- The tool claims to ease your online selling work and give you free time to manage other works of your business.
- What your manual assistance does while making the pricing strategy, so does this tool.
Are these tools useful?
See, everything has pros as well as cons and so as these pricing tools.
Let’s see the pros of pricing tools-
Consumes Less Time: When it comes to making a pricing and repricing strategy and to decide the price that can be profitable to the business and at the same time should be cost-effective to buyers, the Amazon sellers can be seen itching their head. It takes a lot of time in accumulating the data from the market and competitors prices and trending discounts and offer prices. But, these pricing tools with the data feed can sort out every problem within few minutes while resulting in the effective price details of every product. This saved time, you can utilize for making other profitable strategies and customer handling services.
Efficiency: No doubt, the automated tools will more efficient results than the manual efforts. Since these automated pricing tools work on the algorithms of comparison of each and every bit of data fed into it and, therefore, the chances of making an error are less. While talking about the manual staff, a human is more prone to error and mistakes. And, you can understand, a single mistake can change the graph of your sales.
Prevails a scheduled Custom: If you don’t use any automated pricing tool, then, you are the in charge of changing and updating the prices of the products timely as the market demands, but since selling online is not just limited to setting the prices while it involves the series of tasks to be done for order fulfillment, you might forget it and it can disturb the schedule of strategies update. This might affect the sales or profits in the online selling. Using the automated pricing tool prevails the schedules custom in the business as these pricing/repricing tools automatically change and update the pricing strategy as per its schedule. You don’t need to manually assist the tool every time.
Helps in winning Buy Box on Amazon: While selling on Amazon, you need to consider the prices of your commodities so that it can have more buyer’s clicks and so that Amazon can count it for the Buy Box distribution. The price is an important factor that decides the popularity of the products among the customers. The cheaper or worthy to buy products get more buying clicks and add to the Amazon seller account sales. This popularity of the product with higher sales rate opens the door for winning the Buy Box on Amazon.
Expensive: Such tools are expensive enough that can cost you more. The tools that claim to be more effective and efficient are more costly.
Not Compatible: Every tool is not compatible with an integration with seller central account on Amazon. If you try to integrate any pricing tool and if it does not get synchronized with your account, it might affect its working.
Needs the proper and accurate data: If you fail in feeding the accurate data, the working of the tool will be affected. It, therefore, can give the wrong price (if the price is higher among the other competitor’s) might result in customer’s repulsion. While lowering the price may vanish your profit.
Requires Skilled staff: To operate such tools, you need to higher more skilled staff that can increase your budget. To understand the right algorithm and then feed data according requires a birds eye so that no mistake can occur while calculating the price for your inventory.
May Vanish your Profit: Most of the time, to compete with the competitors, the tool can lower off the price of the product to that level at which your profit might be null. The overall business we are doing is to earn profit but a wrong calculation can change the results. Right Pricing Strategy- Key tool for Amazon Marketing is essential for selling on Amazon.
So if you feel that you are finding it cumbersome to manage all the online works along with the price strategy making and timely repricing process, then, integrating your seller central account with automated pricing tools is a need for you. After all, the overall business is to make a profit with having more customers to your Amazon store.
No need to say that Amazon is the place where changes occur frequently even in its pricing strategies and, therefore, you too need to cope with those changes and sometimes manual power and potential lack in pacing those advancements and therefore you may stay behind. Here, this pricing tool helps in updating the products prices or on a scheduled time.
Since this integration needs the skills to operate the tool and therefore your staff should be skilled with such tools. But if don’t have that experienced and skilled assistance, you can go to Amazon service provider team like evantage who not only manages the working of automated tools but also provide the pricing and repricing services of Amazon manually with higher efficiency.