If you’re still wondering if you should be using an Amazon repricing tool, then the news that Amazon.com makes more than 2.5 million price changes every day might convince you.
Amazon are way ahead of other retailers with just 50,000 total price changes made by brick-and-mortar retailers BestBuy and Walmart throughout November. Profitero who did the analysis also revealed that Amazon.com has increased its number of daily price changes ten-fold over the last 12 months. At the beginning of December 2012, the Amazon.com implemented just 269,113 price changes.
It’s staggering just how often Amazon alters pricing, but if you’re a third party retailer trading on Amazon you have just two choices – stick to your guns and list the price you want and either you get sales or you don’t, or join in the repricing game to make sure that you’re competitive at all times.
Remember repricing can increase your prices as well as lower them – I’m guessing that not all of Amazon’s 2.5 million price changes were reductions. Automating your pricing should however win you more sales whilst maximising your profits and it’s definitely worth experimenting with.
One Response
I’m actually surprised that it is this low. But I guess that makes sense if you are a marketplace rather than just a merchant. They don’t need to (and probably shouldn’t) directly compete with their own sellers and they probably tend to have higher margins by letting their sellers sell than what they make on their own offers.
The increase in frequency makes sense in regards to the improvements they made to their APIs this year. It was probably built for internal use and then exposed to developers.