Does Algorithmic Repricing Really Make a Big Difference?
You know the story:
A consumer pulls up a favourite shopping app and types in the name of a product. His eyes are immediately drawn to the colourful callout boxes on the page.
“#1 bestseller,” one says.
“Best offer,” reads another.
Within a fraction of a second, the shopper is clicking “Add To Cart.” He doesn’t even notice the “Other Sellers” option.
The benefits of winning the Buy Box and Best Offer position on popular marketplaces are hard to beat. As much as 82% of sales have been attributed to these coveted positions.
Why Algorithmic Repricing?
Product pricing is one of the biggest challenges facing sellers today. Set it too high, and you miss the chance to get your offer in front of shoppers through the Buy Box; too low and you risk losing out on a mountain of revenue potential.
An algorithmic repricer can help eliminate the guesswork. This hands-free, automated pricing tool helps you win the top spot by making real-time adjustments as the competitive landscape of your listing changes — but never so much that it cuts into revenue and profitability.
Add in the fact that repricers are the most-used software among sellers generating more than $1 million of annual sales on Amazon, and it’s difficult to deny the importance of a strong pricing strategy.
What is Algorithmic Repricing?
With advanced repricing technology, which uses machine learning and real-time analytics, algorithmic repricing works by automatically adjusting prices to keep sellers in line with the competition on marketplaces such as Amazon, Jet and Walmart.
Once you’ve determined your maximum and minimum prices at the SKU level, the algorithmic repricer will automatically revise pricing to help you win the Buy Box. It won’t stop monitoring and making modifications until the best offer is achieved at the highest possible price within the parameters you set.
By monitoring your Buy Box status and evaluating the quality of your competition to arrive at your optimal price, an algorithmic repricer can be an extremely reliable way to win a bigger piece of the Buy Box pie.
After watching Amazon Buy Box wins jump from 7% to 17%, one user had this to say:
“This repricer touches everything faster. It not only helps improve sales but also allows for a more hands-off approach. To experience a big Buy Box jump and see that you also made an extra 46% is pretty impressive.”
Getting Started with Algorithmic Repricing
Algorithmic repricing is not only one of the best strategies for winning the Buy Box; it’s also an easy one to implement: Simply set your maximum and minimum prices and determine which SKUs to reprice.
To learn more about the benefits of algorithmic repricing, contact us today to talk with one of our e-commerce consultants.