Amazon repricing is the act of changing the sales prices of Amazon products multiple times. A common aim is to maximise the profit made over a given period. And that's what this series is all about: maximising your profits on Amazon.
Amazon repricing - why this matters





Most sellers - the vast majority in my experience - have rigid Amazon pricing.

Here are some knock-on effects:


Effects of Pricing too low on Amazon
1. You'll run out of stock more quickly...Usually of your best-selling products!
2. Weeks (months?)of zero cashflow and Zero profit while out of stock.
3. leaving profit on the table
4. no presence on Amazon while out of stock

5. Handing market share and sales to competitors

6. it can be hard to rank again when back in stock
Effects of pricing too high on Amazon
1. Low sales velocity - which ties up a ton of cash.
2. Lower ranking, which can be hard to regain. Which in turn leads to lower visibility...and lower sales
3. You can lose the buy box – and sales - to your competition! (and YES - that IS a thing for PL sellers, not just resellers)
4. Slow-moving stock in FBA incurs inbound stock limits. That’s a peak season nightmare!
Selling more units is the hardest way to drive more profits. Small pricing changes can drive BIG profits.
 


The power of Amazon repricing to drive profits


Say your product sells at $20 for a $4 profit. Increase the sales price by just 10% to $22, (assuming costs stay the same), and you get an extra $2 profit.
That's a FIFTY % increase in profits - for just a TEN % increase in price!

This applies across all categories: Health or supplements; home & kitchen; sports and outdoors, pet care... you name it.
The 3 main Amazon repricing options


Repricing Option 1:  manual repricing
One mastermind member employed a full-time member of staff to do their repricing. Granted, they had over 2000 product lines. This is nonetheless an expensive, difficult way of doing things!

Apart from the expense, it means you can only practically reprice products once a week with a large catalogue (say over 1000 SKUs) at most. With a small catalogue, say 10-100 SKUs, there is still a practical limit of daily adjustments.

Humans also have a bad habit of changing prices abruptly in substantial amounts. To be fair to humans, this is partly because of the low frequency of changes, meaning they need to be bigger when they happen.

But it's very unwise. Amazon's algorithm can remove the buy box from even private label sellers, for repeated movements of over 1-2% of the price. For most products around the $20 price mark, that means movements of even 25-50 cents could trigger problems. (Oh and losing the buy box means losing 80% of sales - not good!)




Repricing Option 2: using a Rules-based repricer








Manual repricing is impractical so it has to be (90%) automated.

For resellers (RA, wholesale etc) the traditional solution has been a rules-based automated system. But that's primitive - often winning sales but losing profits! Also, it just doesn’t account for your stock level!

Why obsess over winning the buy box when going out of stock is usually the single biggest hit to your profits?

What you need is a system that integrates repricing and stock levels. That understands the dynamics of Amazon and changes actions based on results.


Repricing Option 3: Intelligent repricers
Intelligent repricing for private label gives you the biggest and quickest extra profits.

That breaks down into two parts:
1. repricing: this means adjusting product prices daily, in tiny steps. So it won’t annoy Amazon or customers - or start price wars with competitors.

2. “Intelligent” means NOT rules-based; It learns from experience.
If you set a certain profit aim, it will adjust over time, to get that profit. Costs for such systems are also less than 1/10 the cost of hiring people to do this job.