Repricing is technology which allows you to automatically adjust your prices based on your competition. Sometimes you may wish to be the cheapest on Amazon for a particular product but still have the highest price possible to win the deal. A common complaint is that repricing wars mean that you’re cutting your margins and no one wins.
Feedvisor
Feedvisor aims to change how repricing works, they appreciate that you want to win orders but without cutting your margins to the bone. Rather than simply looking at which of your competitors has the lowest price, Feedvisor uses algorithmic repricing aiming to maximise your sales using many more attributes than price alone.
Today Feedvisor launch verion 2.0 of their Algo-Pricing platform. This release introduces a new artificial intelligence that will literally change the way hundreds of millions of products will be priced online. This is achieved by combining Big Data with a closed-loop, learning algorithm that constantly improves itself that Feedvisor say has never been seen in the industry before.
What do you actually want from repricing?
If you ask many sellers what they want from repricing the answer is to win orders at an acceptable margin. That’s actually different from winning orders by having a slightly lower price than all of your competitors.
Feedvisor aim to achieve this by taking into account attributes such as your feedback, seller status, order defect rate, speed of shipping and those of your competitors. They aim to help you win the Amazon Buy Box, not to ensure that you have the lowest price.
Once you’ve won the Buy Box, Feedvisor aim to keep you there, still adjusting your price to keep your profits as high as possible. For instance if you have the Buy Box there’s no need for you to be the lowest price on Amazon if part of the reason you have the Buy Box is based on your seller metrics. Feedvisor won’t needlessly lower your price and in fact will edge it higher if you keep the Buy Box and are winning sales.
Feedvisor will also spot if your competitors are using repricing, deduce what rules your competitors are using and use this to your advantage. You’ll no longer get involved in a race to the bottom pricing war… unless that’s what you want.
Is Feedvisor for you?
Feedvisor say that they monitor and adjust millions of prices online every hour, allowing their clients to stay competitive, maximise profits, and offer the best value to their customers. Their unique proposition is that they reprice but not based purely on price. Feedvisor understands how the Amazon BuyBox works, and is able to reprice your products based on maximum profit, optimum sales, or any other business goals.
Feedvisor uses a closed loop machine learning system to constantly assess its own performance and learn from its successes and mistakes. It evaluates every price change to see if the effect was positive or negative, and constantly improves itself to find the perfect pricing sweet spot for your product.
If you want to win more sales on Amazon then take a look at the Feedvisor website for more information and see how it could benefit your business.
10 Responses
Something like this on ebay would be awesome.
All sounds very clever… unless of course you AND your competitor are both using it!! 😀
Sounds really good if you want to be one of the idiots who sell things on Ebay for about 2p of profit per item and have 100000 auctions
Get a grip !!!
Repricing software can really help drive profits on Amazon as long as you fully understand your margins and costs across your business.
If set up properly, your repricing software should ensure you are not a busy fool. Sometimes you’ll want your competitors to take a hit and sell at the cheapest price – but be ready to jump in when they run out of stock.
Sellers looking for a repricer solution for Amazon and Rakuten Play bundled with their multi-channel retail software should take a look at SellerExpress – https://www.sellerexpress.com/
There has been many occasion when I have researched the price of a product only to find one or more competitors selling the same product cheaper and I have priced above them, because although cheaper their stock levels were lower. Sometimes you are just as well to let a seller sell out of a product rather than competing on price.
This strategy is perhaps more relevant at Christmas, but taking into consideration the volume of sales over the seasonal sales period, do you want to commit to repricing software 24/7?
For example lets say you have 50 of Product A and your nearest competitor has only 2 or 3 left (I know that restocking can change things), and you automate your pricing to sell below your competitor.
You might well sell 50 Product A quicker than your competitor, but high demand results in your competitor selling their 2 or 3 products shortly after you have sold out. Faster turnover, but less profit per product.
Do not forget that increased turnover does not automatically mean increased profit.
I contacted these guys for a quote and they never got back to me.
What I do with my current repricer is just price it to 2p dearer than the current cheapest. That way if there is only 2 of you the price will increase rather than driving the price down. 99% of sellers set it to reprice 1p cheaper so if mine goes 2p dearer, the competitor will then rise in price by 1p so that it is 1p cheaper than mine. Then mine will increase 1p to be 2p dearer again, and then the competitor will rise 1p again, and the process repeats itself. It works much better than me being 1p cheaper than the competition.