Alpha Repricer Staff

June, 25 2021

How to Avoid Amazon Price Wars?

How to Avoid Amazon Price Wars

Amazon sellers tend to pay a lot of attention to their product prices to win the Buy Box, stay in the competition, and attract customers. However, just because you want to get maximum sales doesn’t mean you need to participate in such price wars that serve as a race to the bottom.

Ask any Amazon seller out there about their biggest issue while selling on Amazon, and they’ll start talking about getting into unnecessary price wars and how detrimental it can be. According to us, avoiding price wars is the best way to stay ahead of your competitors. Price wars never really work out, especially when you think about long-term growth on Amazon.

Let’s talk a bit about price wars and why you must avoid them.

What are Amazon Price Wars?

In simpler words, a price war is a competition between you and the other sellers that sell similar products. In such price wars, sellers tend to lower the prices of their products to undercut other competitors and capture more sales.

A price war occurs when two competitors keep on reducing their prices to attract customers by offering the lowest price in the market. Sellers think getting in such price wars will help them win the Buy Box and get maximum sales on Amazon.

Why should you avoid getting into a price war?

When you choose to drop your prices down and sacrifice your profit margins just because you want to attract more customers, you miss out on a critical point. You may enjoy the short-term success of a price war, but it’s never going to stay that way! Price wars are not going to help you take the lead in long-term, and this is why:

While you think offering the lowest price is the best way to retain buyers, it might be the opposite. First, those buyers will always expect you to offer the lowest product prices even when you are not in a pricing war. If you don’t get them the product at their desired price, the buyers will look out for other options as they know they will find somebody who offers a lower price. Furthermore, buyers will get the idea that you are selling cheap, lower-quality products, which is why you are lowering your prices. Selling at a cheaper rate will make them think you are selling low-quality products.

Price wars also give the idea that your brand has nothing more to offer than the best price, and that is why you cut down your profit margin just so you could sell your products.

Getting in price wars is fine if it doesn’t happen often, but it will affect your business if you keep getting involved in one. Plus, Amazon doesn’t only notice your price before giving you the Buy Box. It also notices your customer service, feedback, and rating. If your customers think of your products as low-quality, you don’t stand a chance of winning the Buy Box.

How to Avoid Amazon Price Wars?

1.      Make your brand stand out!

The best way to avoid price wars is to differentiate your brand from other competitors. If you notice, price wars usually begin when sellers offer the same products at the same price to the same buyers. Sellers only focus on product price and forget about other strategies they can apply to help their business stand out. Businesses on Amazon must adapt different ideas and change to provide value to their customers. Offer them the best customer service, top-quality products, fast shipping, and attractive discounts. Any little effort you make to differentiate your brand from others, your customers will never focus on the price alone.

2.      Think of your long-term growth!

Sellers keep on checking the listing to see if they made a sale. You might notice that somebody has undercut your price and got the sale instead. As a result, you drop down your price to compete and the price war starts. You think getting sales this way will help you gain maximum sales, but in reality, you are compromising on building your business in the long term.

It’s fine if you decide to compromise on profit at times, you can get rid of your slow-moving inventory. However, don’t sell at lower prices just because you want to make a sale.

Maintain your profit margin and let the other competitors sell their products. You will automatically get a lead once you make a genuine sale and meet your profit margin and ROI targets. At that time, you will win the game, while your competitors will slowly lose their reputation and go out of business.

3.      Get a repricer!

Let an automated repricing tool take care of your product prices! Manual repricing is fine until you don’t know how to manage your product prices with all the other business aspects.

Alpha Repricer, the fastest Amazon repricer, helps you offer the best product prices in the market. Our Amazon repricing tool enables you to get maximum sales and profit without driving prices to the ground during price wars. The best part is that you can set min/max prices according to your profit margin, and we make sure the tool reprices within those limits. Alpha Repricer has been designed in a way to ensure sellers who wish to avoid price wars can do so. Along with continuous repricing, users also have the option to schedule repricing for the products. Sellers can also filter out sellers to avoid competing unnecessarily. Also, you can change your repricing strategy if need be.

Alpha Repricer– the best Amazon repricing tool offers a 14-day free trial with all features included. Sign up now and reprice with the fastest Amazon repricer in the market.

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