This is a guest post by
By Jessica McCune, Marketing Specialist with Sellozo
Why Wholesale and Arbitrage Amazon Sellers Should Consider Using a Repricer
Price is one of the most important factors in who wins the Buy Box on Amazon, so you want to ensure that your product prices remain competitive. A repricer will keep your prices in-line with the criteria you set based on minimum and maximum prices, margins, and other rules.
You can save a ton of time by using a repricer rather than manually updating your product prices. It can take up to 15 minutes each time you update your product’s price. If you get into a pricing ‘war’ with a competitor, this can start to eat up quite a bit of time if you’re having to wait for Amazon to update the prices and see if you need to adjust your price. If you’re using a repricer, it will automatically detect when the price needs to be updated and change the price for you.
Many arbitrage sellers will lament about the dreaded “race to the bottom” of a product’s price. This happens when sellers keep undercutting each other’s prices until no one is going to make a profit. When this happens, what was once a profitable product becomes one that no one wants to bother selling because they can’t get a decent return on selling it. If you want to avoid a “race to the bottom” with your competitors, it’s best to match their price and try to share the Buy Box, rather than compete for it.
It’s important to understand all the costs associated with your products. This helps you know what your optimal price range is for each of your products. When setting up a repricer, this optimal price range will be instrumental in establishing your minimum and maximum prices.
Repricers typically operate on their own, with little needing to be done on your part. However, you should be checking on it routinely to assess how it is performing and make any necessary adjustments.
Amazon Sellers who follow the wholesale or arbitrage model should consider using a repricer to stay competitive and save time. There are many repricers available that are all unique in their own way and range in price. Some repricers, like Sellozo, offer extra features along with their repricer that help with things like Buy Box tracking and the ability to choose whether to compete against Prime or non-Prime sellers.
Using a repricer will save you a lot of time in the long-run and help you win and keep the buy box. Make sure you research the repricer options available and choose one that fits your business needs and budget. Happy Selling!