Your Guide to Effectively Using An Auto Repricer to Win The Buy Boxmikey
Are you a new amazon seller in the marketplace? Or do you need a run-through of how you can optimize your products to earn sales? Here’s a quick guide on how you can make better use of an auto-pricer!
Amazon Buy Box: Quick Overview
Before we get to the main subject, you first need to understand the fundamentals of amazon and why we do what we do on this platform. The Buy Box.
What is the Buy Box?
Buy Box is the box on the right side of the Amazon product detail page. This is where customers can add items to buy on their carts. As an Amazon seller, this is a priority because not all sellers are eligible to win Buy Box. Yes, you have to WIN that little button that makes all the difference to your reseller career. Sounds like a competition, right? Because it is! Without the Buy Box, the seller will have less traffic and thus, gain little to no profit. This is why all sellers compete to win the buy box.
Amazon’s algorithm works on a product and category basis. Buy Box regularly rotates from one seller to another. So, if you as a seller loses to a competitor on one product, you can still beat them on other unrelated products. It is only a matter of strategy.
With that said, how can I compete for the Buy Box?
1. Have a professional seller account.
Do not just create an amazon account. What you need to be Buy Box eligible is an amazon seller center account and pay the $39.99 monthly fee. You can sign up at services.amazon.com.
2. Ensure to have a successful sales history
Buy Box eligibility is a status awarded to sellers who are experienced and have high-performance levels. Having a record of successful sales history will increase your chances of winning one.
Customer satisfactory is the key to having successful sales so make sure that you keep a good score of the following factors:
Amazon seller reviews
Customer reviews help build up your reputation as a seller. Frequent ratings to your product and customers that leave good feedback, the better.
Fast delivery time creates satisfied customers.
The fulfillment method is basically a process that a seller takes in order to fulfill an order. There are 3 types of fulfillment method that a seller can choose from:
- Fulfillment by Amazon (FBA) is where Amazon takes care of the whole fulfillment process. Since it utilizes Amazon’s perfect seller rating, it helps increase your chances of winning Buy Box.
- Fulfillment by Merchant (FBM) is where the seller is responsible for all the fulfillment process.
Seller Fulfilled Prime (SFP) is a program that allows sellers to display a prime badge and deliver directly to prime subscribers in a short amount of time. This also gives you the opportunity to gain the benefits of Prime eligibility.
4. Selling new items.
Though Amazon has a separate buy box for used items, they are not eligible for the regular Buy Box. If you want to grow your chances of winning Buy Box, make certain that you sell more new items.
5. Make sure that you ALWAYS have available stock.
If you do not have a supply, the Buy Box will rotate to another seller. You have to make sure that you have a consistent inventory of your listings to keep in track of Amazon’s algorithm.
Auto Pricer: What is it, How it works, and Why do I need it?
If you are already Buy Box eligible, the next thing to keep in mind is how you can keep Buy Box in your listings. This is where an automated pricer comes into play.
Pricing is an important factor in keeping Buy Box to your product. Prices too low or too high affects both the seller and the consumer.
There are two types of Repricing tools:
1. Rule-based pricing
- This type of pricing works by the seller setting the pricing rule. Although it works, it can be time-consuming.
Amazon’s automatic pricing is an example of a rule-based pricing tool. It automatically adjusts the pricing of your product based on your set rules. For example, if you rule the price on your product and another seller reprices their item to win the buy box, the automated pricer will automatically reprice your item, competing with the new buy box item.
2. Algorithmic pricing
- This tool is an algorithm-based tool that analyzes the metrics of your competitors in order to determine the best possible price for your product. Given all the advantages, algorithmic pricing tools are more expensive than the former tool.
What should I not do?
Do not Set your price higher than the retail price
If you are selling items that come directly from manufacturers and suppliers, they usually display their prices under the product detail and going above it is not a good idea.
Do not just use amazon’s auto pricer
Amazon’s auto pricer sure works and is proven to be effective but only at some point. It has its share of disadvantages that outweighs its advantages.
- It consumes too much time since it has no bulk option. Meaning, you have to set pricing rules on your items one by one.
- One of the amazon’s limitations is that it does send a notification when your competitor reprices their items.
- This makes it harder for the seller to catch pricing opportunities.
What should I do?
Cut your price lower than your competitor
Remember that one of your goals as a seller is for your products to land on the first page or better yet on the top 3 spots. Who would want to visit the last page? And overpriced at that! You don’t have to price your product too low that you do not gain enough ROI but it must be reasonable enough.
Use a Repricer.
It is said earlier that algorithm-based repricing tools provide better chances of winning the buy box. With the disadvantages of the regular amazon automated repricer, a third-party repricer tool is worth buying.
In the end, you only want to increase your profit
After all the things stated above, we hope we have shed some light to you. There is no one-shot formula in being successful as a seller. But with the help of some tools, you can be rest assured to be ahead of your competitors and gain more than you expect. There are a lot of repricers offered in the market but Sellers Apps is a cost-efficient auto pricer tool that offers a wide variety of analysis strategies so as to facilitate a better service to your customers and stay at an advantage.