Why FBA Sellers Need Amazon Repricing Tools

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In this first part of a two-part series on the benefits of Amazon repricing tools for FBA sellers, we explore the importance of strategic pricing and the various types of repricing tools.

To win the Buy Box and make more sales at higher margins as an Amazon FBA seller, you need to change your prices.

Not once a month. Not once a week. Not even once a day.

The secret is for Amazon FBA sellers to change prices constantly.

And the even bigger secret hiding behind that is to use Amazon repricing tools to handle the workload with automation.

Discover why it may make sense for you to start using Amazon repricing tools, and how you can use intelligent price automation to win the Buy Box more, save time, and scale your Amazon FBA business.

Why strategic pricing is important for Amazon FBA sellers

According to Amazon:

Buy Box eligibility requires meeting very high standards. Excelling in all areas that deliver an outstanding customer experience is the best way to achieve Buy Box eligibility and win the Buy Box, including: Pricing.”

  • Price competitively. Customers trust that they will find low prices on Amazon.com.
  • Watch your competition to stay competitive. View the price of the offer that is currently winning the Buy Box.

You’re probably thinking that constantly watching your competitors’ prices and changing your prices based on their actions sounds like an impossible workload for any FBA seller.

And, handled in the conventional way, known as “manual repricing,” you’d be right.

Manual repricing, like any form of data entry, is tedious, time-consuming, and mind-numbing. It’s also never-ending.

But it’s not the only way—and it’s far from the best way to  optimize your prices.

Today, Amazon FBA sellers are lucky to have powerful repricing software that enables them to automate price changes continuously and in response to any changes in price their competitors make.

That means you can adjust your prices to those of targeted competitors and have your prices update as fast as Amazon allows.

Whether this means beating, matching, or pricing above your competition depends on your business. The SKU and the season are just some factors that can help determine your strategy.  

Who are the main competitors of Amazon FBA sellers?

With so many sellers—including Amazon itself—offering the same products, competition on Amazon is fierce. Not to mention there’s only room for one seller to win the Buy Box at any given time.

That makes your prices one of the only ways to truly stand out from similar sellers.

While this is true for all sellers on Amazon, it’s especially true for FBA sellers.

Since you chose to elevate your standing on Amazon by opting into FBA, you’re already in the seller big league. You’re also automatically eligible to win the Buy Box.

It probably isn’t worth the effort to compete against non-FBA sellers as buyers will happily pay a premium for FBA perks like free 2-day shipping with Amazon Prime.

You also won’t want to compete directly with Amazon, since it enjoys marketplace advantages above and beyond all third-party sellers.

With that in mind, your true competition on Amazon as an FBA seller is other FBA sellers.

FBA Considerations

All FBA sellers offer superior customer service and fast shipping times, and typically have high seller and feedback ratings. This means your options are limited in how you can try to outshine other FBA sellers’ listings.

When it comes to differentiating their offerings, repricing becomes the game Amazon FBA sellers must play to win.

But how is it possible to deal with changing your prices frequently enough to remain relevant to potential buyers—especially if you’re dealing with hundreds, if not thousands, of SKUs?

Additionally, how do you ensure you don’t undercharge for your items?

The last thing sellers want is to discover their sales result in net losses after accounting for costs.

And, when you’re FBA, there are lots of additional costs and fees associated with doing business.

This is where automated Amazon repricing tools come into play.

What kind of Amazon repricing tool is best?

Not all automated repricers are created equal.

Some repricers only reprice hourly; others reprice as fast as Amazon’s APIs allow, which is in increments of less than 15 minutes.

Lower-end repricers only provide rules-based repricing. Other repricers market themselves as “algorithmic,” meaning the rules are built into a complex algorithm that eliminates the need for the user to create custom rules himself.

Only research, time, and testing will determine which repricing tool is right for your Amazon business.

A good starting point is to find a repricer that offers a combination of both algorithmic and rules-based repricing.That’s because some SKUs may perform better with algorithmic strategies that aggressively target the Buy Box, while other SKUs may perform better with a custom, rules-based strategy that you devise.

You may also have very different goals for your SKUs throughout the year.

Suppose you wanted to liquidate a specific group of underperforming SKUs. You could use a custom strategy to aggressively price to sell. Depending on your philosophy, you may choose a price matching strategy or opt to beat your competitors by a set amount or percentage.

What if you want to make the highest profit margin possible?

In that case, you could employ an algorithmic strategy to target the Buy Box and do the strategizing for you.

Or, you could test out different custom strategies using a combination of min/max price rules and competition exclusion settings that target your most relevant competitors within an optimized price range.

Having a repricing tool that can handle an array of repricing strategies is key.

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