A repricing tool allows sellers to dynamically reprice their listings on the marketplace as per the prices listed by the competing sellers to help them win BuyBox. The article will further explain what is BuyBox, how does repricing work and different types of repricers. This will help sellers on deciding which repricer will suite their needs and how to use a repricer to optimize profits.
Marketplaces like Amazon, Walmart offers huge opportunities for online sellers to increase sales and maximize profits. However, as the competition grow, online sellers need to come up with new strategies to beat the competition. The concept of Buy Box is driven by many factors but the product price is the most significant one. Winning a Buy Box has a major impact on the overall sales and profits.
What is a Buy Box?
The concept of buy box is used by Amazon and Walmart. This is the page where the shopper begins the process of making the purchase and can simply add the listing to their shopping cart. The listings on Buy Box can be sold by many different sellers. Winning a buy box has a significant impact on the sales. Using a repricing tool significantly increases the chances of winning a Buy Box.
How does Repricing work?
A repricing tool uses clever algorithms or rules to dynamically evaluate prices for each listing and automatically adjust the prices as per the competitors and based on the price range added by the seller for winning the Buy Box. The repricing tool would first assess the marketplace variables for the listing and then ascertain the best price based on the maximum and minimum price value entered by the seller. Finally, the tool will ensure that the new prices are within the price range set by the seller.
When we have a lot of sellers selling the same product, the question arises on how to be competitive. A good repricing tool enables a business owner to sell more at the best possible price for maximizing price. A repricing tool has to be fast to change prices close to the real time.
A repricer can be rule based or algorithmic. It is cost-effective to have a rule-based repricer however, these repricers may erode on sellers' profits. For example, if you set the rule for the product price to be a minimum 12% of other marketplace sellers. An algorithmic repricer will be a little expensive however, they are able to automate the entire repricing process by evaluating the entire matrix which helps in winning the BuyBox.
