- Posted July 2, 2013 by
How To Sell More On Amazon: Amazon Repricing Software & Strategy
If you’re currently selling on Amazon, you know what it can do for your business. Many Amazon sellers can see resounding success with very little strategic direction or automation behind their sales strategy. It’s a safe bet that by simply listing your products on Amazon, you’ll see sales.
That being said, it’s often the case Amazon sellers leave a lot of money on the table. In my years of representing manufacturers and distributors in third party marketplaces, I’ve found the evolution of sales strategy goes something like this:
Company begins offering their products in third party marketplaces (i.e., Amazon, eBay, etc) and sees additional sales. Generally efforts begin manually, with products being listed one by one, until the company has comprehensive coverage of their product catalog online.
Company plateaus in realizing increased revenues as they have full representation of their product online. Recognizing the importance of the buy box — colloquially known as the add to cart button – Amazon repricing software may be sought out or internally developed, but tends to be implemented so the company is the low price leader on their product offerings without dropping below a profitable threshold, also known as the price floor.
Fulfillment by Amazon
Savvy sellers recognize the bias Amazon shows toward FBA merchants and begins offering their products through a blend the Amazon fulfillment network and internal fulfillment. Minor to moderate revenue and profit gains are realized.
This is where the majority of merchants stall. In rare cases, the strategies below are implemented for revenue growth that rivals initial launch:
Advanced Repricing (aka Buy Box Optimization)
Given the blended effort, sellers are able to leverage more advanced repricing strategies incorporating buy box optimization. As seller accounts age and feedback accrues, sellers realize they’re able to attain (and maintain) the buy box on their product listings without necessarily having the lowest price. Listings are optimized on a case by case basis instead of simply spiraling downward in a price war to meet or beat other merchants across all listings thereby allowing for more profit per sale.
A majority of Amazon sellers — including some powerhouse multi-million dollar businesses — list their products through a single product listing due to the desire for simplicity or lack of understanding. While it’s viable to run an incredibly successful business this way, there’s a metric shit ton of money being left on the table. Depending on your vertical, an additional 10 to 20 ASINs frequently exist selling the same product, often at different prices. Sellers that manage hundreds — or even thousands — of products listings can easily see their revenues and profits skyrocket by associating with ALL relevant product pages that match their inventory. But it doesn’t stop there..
After the implementation of a comprehensive inventory listing strategy, it makes sense to reprice these listingsindependent of each other. Despite being the same product offering, price each listing so the buy box is attained on a per listing basis. If you’ve been listing a blue widget for $20 in a single listing, and 10 other listings exist spanning $20 – 50, it’s illogical to price them all at $20. Each listing should be priced so that the buy box is attained, but no more. In doing so, massive additional profits and sales can be generated.
Actual example, post-implementation of the two strategies above representing growth from $69 to $252k monthly in sales and a 3220% increase in orders:
Joey Burzynski spent the last 2 years architecting a software solution to assist high-volume Amazon sellers in the automation of ASIN identification, association and repricing strategy. He can be contacted via LinkedIn or his website at ResistedNormalcy.com.