How Amazon Repricing Tools Help FBA Sellers Win the Buy Box

 Appeagle_guest_post_for_Stitch_Labs_2.png

In this second part of a two-part series on the benefits of Amazon repricing tools for FBA sellers, we explore how repricing tools and other strategies can help sellers can win the Buy Box on Amazon.

While some repricing tools provide sellers with an array of in-depth exclusion settings for narrowing competition, others come up short.

It is to your advantage to have more exclusion settings as this allows you to focus only on the competitors worth repricing against.

Most repricers allow sellers to exclude competition by fulfillment type.

FBA sellers will want to focus mainly on other FBA sellers as Merchant Fulfilled (MFN) sellers typically have inferior metrics like shipping time and seller rating.

MFN sellers also avoid margin-eating FBA fees (although their overhead may still be comparable), which allows some to charge lower prices.

FBA sellers should not be tempted to compete against MFN sellers on price because their superior shipping times and ratings command premium prices. Not to mention that competing with MFN sellers on price can drag FBA sellers into the red.

Some repricers can also exclude competition by:

You can even exclude specific sellers, including Amazon itself, if you decide that competing against certain sellers isn’t worth your time.

Once you narrow down your competition, it’s time for your Amazon repricing tool to work its magic.

How sellers win the Buy Box on Amazon

Now that your repricer is up and running, how can it help you win the Buy Box more?

Better yet, how can it help you win the Buy Box more often and at a higher margin price?

It’s well-known that Amazon rotates the Buy Box between several of the “best” sellers offering the same product.

By Amazon’s standards, “best” entails maintaining stellar metrics in a variety of categories.

Here are the most heavily weighted seller metrics in Amazon’s Buy Box algorithm:

  • Fulfillment type
  • Landed price (price + shipping costs)
  • Seller rating
  • Shipping time

Other metrics will also affect your chances to win the Buy Box, like feedback score, order defect rate, and cancellation rate—but only slightly.

Check out this primer on how to win the Buy Box based on Amazon’s Buy Box algorithm to see areas where you could improve.

Winning the Buy Box with automated repricing tools as an FBA seller

Using an automated repricer is a surefire way to power your FBA listings into the Buy Box more often.

You can peg your prices to the current Buy Box price with algorithmic repricing or custom rules. This virtually guarantees a share of the Buy Box rotation, and the better your non-price metrics, the more time your listings will remain prominently displayed.

Most importantly, you don’t need to offer the lowest price to win the Buy Box.

Buy Box-eligible sellers are typically priced within 5 percent of the current Buy Box price. So, as long as you’re within 5 percent of the current Buy Box price and your other seller metrics are top-tier, you’re going to eventually win the Buy Box.

Knowing this, you could create a custom strategy that prices you within 5 percent of the current Buy Box price.

Whether you price above or beat the current Buy Box price by a set percentage (or amount) depends on your profitability threshold, which is reliant upon your costs.

Make sure you have a firm grasp of all your costs before using repricing tools.

Amazon repricing tools and FBA sellers: Putting it all together

As an FBA seller, you’re already “best” when it comes to the most important metric, fulfillment type.

Most likely, you’re also considered close to “best” when it comes to your seller rating and shipping time (due to your Prime 2-day shipping eligibility).

With that said, landed price is what FBA sellers really want to focus on to win the Buy Box.

(Of course, if your Amazon seller rating needs improvement or other metrics are lackluster, you should work to improve those, too.)

An automated repricer can help you protect margins by setting it to reprice above your FBA competition by a certain amount or percentage. This ensures you’ll never engage in a “race to the bottom” price war.

If you use a powerful repricer, you can also configure your repricer to automatically reset to your max price after reaching your min. This is a smart strategy for maximizing margins because it allows you to make higher-priced sales after your competitors sell out of an item at a lower price.

Experience the power of automated repricing for free

When you realize the power that automated repricing gives your FBA listings, the investment becomes a no-brainer.

You’ll find that after the initial setup, repricing software will save you from hours of tedious work every month. And, with manual repricing out of the picture and the entire repricing process automated, you’ll be able to free up time to build your Amazon business in other ways.

BlogCTA_RequestADemo_v1a.jpg

comments powered by Disqus

Grow Your Retail Business with Stitch

Learn How