Most sellers on Amazon have a common misconception that if they have the cheapest pricing, they will sell more. It certainly is not true, nor will anything ever be that simple. The majority of the sales (about 85-90%) are generated from Amazon’s Buy Box, and to get the Buy Box you do not need to have the cheapest prices! There are certain metrics involved when it comes to the Buy Box, with things such as seller’s feedback, shipping type, delivery time, dispatch rate, defect rate and, of course, the price that will all play a role. If your overall metric is better than your competitor, you can position your prices higher and still be in the Buy Box. And to set the right price, you need the help of a re-pricer!
Most re-pricers’ out in the market have similar strategies where they undercut the cheapest seller. Amazon has their own re-pricer, which most sellers use without comprehending the downsides of it. With Amazon’s repricer, sellers always end up hitting their minimum price.
If you and another Amazon seller using Automotive Pricing both have the same pricing rules on ASIN, your price will settle to the final level dictated by both your own and your competitor’s rule. This limits your re-pricing potential. For example, if you both have the rule to stay 10p behind the lowest price, your re-pricing will simply register all your prices like this, as opposed to allowing more intricate and fine tuned re-pricing rules. You are also unable to set rules against sellers with different shipping types. You can read more about this right here.
Luckily, there are a few re-pricing systems that have a better solution, enabling sellers to increase their margins. We all know what the Buy Box is and a lot of re-pricers developed a strategy to get you inside, but most of them stop there. eSagu is a company from Cologne, Germany, that developed unique strategy that gets you inside the Buy Box and then starts increasing your price. The software communicates with Amazon in less than 2 minutes, and is one of the fastest repricing systems in the market. With information about the Buy Box available every 120 seconds, sellers can update their prices several times before other competitors even notice the changes. The software also has a feature that can trigger other systems to increase the competitors prices preventing everyone from selling on their minimum price, hence avoiding price wars.
eSagu went one step further – with an experienced team that has worked with Amazon sellers for more than a decade, eSagu can provide a personal account manager for each client, who not only treat their client’s shop as their own, but helps them to set up the best strategies to maximise profit. eSagu offers a free trial, providing the full service for 10 days, to show people how it will work for them and their business. It takes 10 minutes to set up the whole system, and can really improve your margins, maximise profit, and bring a whole new edge to your e-Commerce selling. So, what are you waiting for?! Click here to sign up!
This was a guest blog written by the wonderful folks at eSagu. Be sure to check them out and what they are able to do for you. Like all of our partners, we’re confident they can be another key player in your eCommerce success. Be sure to check out our last blog by following the link here!