The 5 Most Common Amazon Repricing Mistakes and How to Avoid Them

amazon repricing

1. Not Repricing When Costs Change

Whenever any of your costs change – product, fulfillment, sales, or overhead – a repricing event must happen immediately so your margins and Buy Box ownership are protected. If you use FBA or ship from stock and buy a new batch of inventory at a different price from those of prior purchases, repricing must occur because average per unit cost has changed. If you drop ship or cross-dock and your supplier publishes new prices via their data feed, repricing must also take place because product cost has changed.

2. Ignoring Multi-Fulfillment Complexity

Online sellers rarely factor in all of the complexities of a multi-method order fulfillment model when repricing on Amazon. For example, the different methods of order fulfillment are: shipping from stock, FBA, drop shipping, cross-docking, and 3PL – and each method has its own unique cost structure that changes over time. Merchants who set and forget their fulfillment costs are putting their profit margins at risk.

3. Adjusting Floor and Ceiling Values Manually

Adjusting your floor and ceiling values manually is a bad idea for two reasons. First, it takes too much time – time that could and should be spent on higher value growth initiatives. Second, no one can manually adjust their floor and ceiling values as often as their costs – and competitors’ prices – change. This daily operational task can quickly turn into a multi-person full-time job as your SKU count increases.

4. Using a Non-Integrated Repricer

Online sellers often turn to stand-alone repricers or systems built into listing management platforms. The problem with these tools is that they are based on reacting to their competitors’ price changes – and that’s only half the answer. The point isn’t to win the sale. It’s to profitably win the sale. To do that, you need to know the competition’s price and have a firm grip on your total, real costs based on how you are fulfilling the order.

5. Making Worst-Case Scenario Estimates

Believe it or not, some merchants estimate when creating repricing rules. For example, Amazon Marketplace sellers pay different amounts to sell on Amazon depending on what categories the products they sell fall under. If they don’t know what the sales channel fee is going to be, they assume worst-case scenario instead of looking up the item to determine the correct amount. You already know your margins would shrink if the sales channel fee increased and you didn’t raise your floor. But what if the sales channel fee decreased and you didn’t lower it? You could be missing out on a lot of potential sales. Even a 2% decrease in cost might be the difference between keeping the Buy Box or losing it.


 
With Etail Solutions you can win – and keep – the Buy Box and maximize your profit margins.

Our repricer instantly raises or lowers prices … for any number of SKUs … across any number of channels and listings … when your costs – and – your competitors’ prices – change. This means no more guessing or hoping for the best. With Etail you’re always selling at your most competitive price while protecting – and growing – your profit margins. 

Imagine how relieved you’ll feel knowing you’re hitting your target markup on every sale you make … no matter who you buy from, where you sell, or how you ship. Imagine repricing your entire catalog with pinpoint accuracy as often as necessary – without having to lift a finger!

If you’re tired of the never-ending battle of trying to keep your prices right …

If you’re tired of not knowing if you’re losing money or leaving money on the table …

If you’re tired of being outpriced, outsold, and outclassed by your competitors …

Get in touch with us today.

With the ability to reprice 9 million SKUs up to 600,000 times per hour, you’ll see why some of the largest online sellers in some of the most competitive markets depend on our repricer to get the job done.

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