3 Reasons NOT to Use Automated Repricers on Amazon or Walmart
If you’re an Amazon or Walmart seller, by now you must have heard about automated repricers. These near-magical software tools were made to help sellers automatically and continually update the prices of products they sell on Amazon — often in real-time — in response to the price changes their competitors make.
While these tools have yet to be implemented by the mainstream majority of online sellers, the ones who have embraced automated repricers seem to feel strongly about them.
Amazon seller Ron Myers summed it up like this:
“You need a repricer on an eCommerce marketplace. That’s a no-brainer. I wouldn’t go to market without a repricer because that’s like playing darts blindfolded.”
Some automated repricers can even proactively move your prices lower or higher with data-driven algorithms.
These rapid price reactions help sellers win the Buy Box more often, maximizing their exposure. This results in more sales, better margins, and boosted profits.
On top of that, repricers take a tedious task off your hands.
While repricing is vital for staying relevant on listings with many competitors, managing more than a handful of products’ prices without the help of an automated repricer can become a 24/7 job that no single human can keep up with.
That’s why so many people use them: the amount of time (and/or labor cost) saved by outsourcing repricing to automated repricers can add up to more hours (and dollars) than you realize.
But that doesn’t mean there may not be a few reasons not to use automated repricers.
Keep reading to find out if any of them apply to you.
1. You don’t mind leaving money on the table
Maybe you’re content with the current state of your sales.
Maybe you don’t feel like changing anything about the way you run your Amazon business.
Or, maybe more money just isn’t for you.
If any of those are the case, then forget about using a repricer.
The power of automated repricing gives any Amazon store a major advantage by changing the prices of its products in relation to its competitors’ prices.
You can decide whether you’d like to beat your competitors’ prices, match their prices, or price abovethem by a pre-set amount or percentage if you believe your non-price metrics, like faster shipping time and higher seller rating, warrant a premium price.
You can even target exact competitors to include and/or exclude from who you reprice against (such as deciding whether you’d like to compete against Amazon itself, or whether you’d like to reprice against sellers with a lower or higher seller rating, feedback score, or number of handling days), allowing you to customize a sales strategy for each product.
TL;DR: When you use automated repricing software correctly, you’re going to see a boost in your Buy Box wins, sales, margins, and profits.
So, if you’re happy with today’s sales figures, or you don’t want to change anything about your business, or you couldn’t care less about making more money, then automated repricers are surely not for you.
2. You find joy in the monotony of manually repricing your items through Amazon Seller Central and Walmart Marketplace
Sure, the majority of Amazon and Walmart sellers loathe the tedious, time-stealing process of tracking the prices of their competitors and manually repricing their own products through the Walmart Marketplace and Amazon Seller Central interfaces.
But, that doesn’t mean there aren’t sellers who absolutely love it!
Maybe you really enjoy sitting at a desk behind a computer screen for hours upon hours, crunching numbers and doing data entry for the hundreds (if not thousands) of SKUs in your inventory.
Maybe you get an endless thrill from “hunting down” your competitors by searching for them one at a time, just so you can see how they’re pricing the same products you sell.
Or, perhaps you just hate taking breaks from your work and you couldn’t be happier than when you’re delving deep into the minuscule details of manual repricing.
If any of these sound like you, then you should avoid using automated repricers at all costs.
All a repricer will do is rob you of your joy by taking away the yawn-inducing tasks you love to do.
But, if you’re hoping to free yourself from some of the more time-sucking tasks involved in running your Amazon store and you secretly dream of the day when you could spend more hours outside in the sun than in front of the abrasive glow of your laptop, then maybe it’s time to “outsource” these jobs to automated repricing software to see how much it will increase your sales, margins, and profits.
You might even have time for a life.
3. You think calculating the minimum acceptable selling prices of your products is too difficult to do
Sellers don’t have to do very much to start using a repricer.
The one thing you do need to do is figure out the bare minimum you’d be happy selling each of your products for and still make a decent profit.
This is called calculating your minimum price (or min price), and it’s the single most vital thing for sellers to set up when they start using a repricer.
By attaching a minimum price to each item you decide to use your repricer on, you’ll guarantee that you’ll never sell anything for a price lower than what it takes for you to generate your minimum acceptable profit.
In short, with your minimum prices in place, there won’t ever be a “race to the bottom.”
Some people shudder at the idea of having to crunch numbers to ensure they make a profit, and to those people, we used to say: “Repricers just aren’t for you.”
That is, until we added a feature to our repricer that automatically does the min price number crunching for you.
We call it our “profit-based min” setting because you simply input your desired minimum profit per sale when setting up a strategy. Then, once your strategy is complete with all your desired settings, our software will automatically calculate the min prices of any listing using that strategy based on the minimum profit you set.
So, instead of having to manually account for all the fees that will impact your profit margins, including Amazon’s fees (including FBA fees) and everything else that goes into the cost of business, like shipping, anticipated returns/damages, etc., you can let your repricer handle the dirty work for you.
You can set up as many strategies as you want, so you can have a variety of min profits to suit different products and price points.
And, you can even have your prices reset to a higher price when your competitors run out of the same product in their inventory. This helps you maximize profit margins when you’re the only seller with that item in stock.
If you still fear numbers in spite of these amazing advances in automated repricers, perhaps the thrill of automating your price changes is something best left to others to enjoy.
Do the reasons not to use automated repricers add up?
Clearly, the pros of using repricers are HUGE for any Amazon seller. After all, most people would jump at the opportunity to implement a tool that would both save them time and make them more money.
But what about those tall tales about repricers causing sellers to lose money?
Aren’t repricers risky to use?
And, since some other sellers are using repricers already, won’t using one just cause you to continuously reprice your items downward against other repricers doing the same thing, resulting in a “race to the bottom” where neither you nor your competitors will make any profits?
The answer to all three of these questions is a resounding no.
Repricers exist to improve the lives of Amazon sellers by automating a job that would take a team of humans so much longer to do — and doing a much more efficient job of it, at that.
And, repricers aren’t risky when the sellers using them take a little time to learn the software and set it up correctly for each of the products they want to reprice.
And that “race to the bottom” you may have heard about?
Yeah, that won’t happen if you’ve set up your repricer the right way, setting minimum prices (or using your desired minimum profit to set your minimum prices) for each item you plan on repricing.
You can also ensure you won’t engage in a race to the bottom by using a strategy that doesn’t undercut your competitors, such as choosing to match your lowest-priced competitor or keeping your price above your competitors’ prices when you think the overall experience you provide to your customers justifies a higher price.
So, now that you know a few reasons not to use automated repricers, we’ll let you decide if these time-saving, sales-driving tools are for you.