Since we are an Amazon repricing tool ourselves, you might assume that we are only going to list down the advantages and not mention the drawbacks of using an Automated repricing software. But that’s not the case! In this blog, you are going to find the pros and cons of using an Amazon repricing tool and decide if it’s the right fit for your business.
A Brief Introduction to Amazon Repricing Tool
Most of the sellers already know and have experienced using an Amazon repricer. However, if any new sellers are reading this blog, here’s what you must know about a repricing tool:
An Amazon repricing software changes your product prices so that you stay competitive on Amazon and get more sales and profits than your competitors. All you do is enter the min/max price limits of your products and set certain rules that you want your repricer to follow, and then the repricing software raises and drops your product prices accordingly. The major advantage is that a repricer saves you time by eliminating the need to manually reprice and change prices for each item in your listing.
Now, let’s get into the advantages and disadvantages of using Amazon repricing software.
1. Pros of Automated Repricing on Amazon: Listing a Few Out of Many
Saves Your Time
It takes a lot of time to manually adjust your product prices each time your competitors reprices their products. It gets even harder to keep up with all the price changes when you offer multiple products on Amazon. Moreover, as soon as you are done adjusting the price of your product, you will have to do it again because your competitors are almost certainly utilizing repricing software and changing their prices in a matter of minutes. In short, manual repricing is a waste of time and it takes you hours to reprice your items when you can just sign up with an Amazon repricing software and do it within minutes.
Let’s You Stay Efficient
The time sellers save by not having to manually reprice their products on Amazon can be but to better use in other areas of their business, such as marketing, and increasing sales. It gets really difficult to invest time elsewhere when you are sitting in front of the desk fully focused on just one thing; altering prices!
Decreases Human Error
No matter how careful you are with your business, you are bound to make mistakes. And you don’t want it to happen in the area of prices that can result in you earning less or losing sales. It’s much better to use a repricing tool whose main function is to alter your product prices and deal with the numbers based on the information you provide and the rules you set. You won’t have to move a decimal, your repricer will do it for you without making any mistake!
Easy to Work With
There are numerous aspects of your business that require you to pay extra attention to them and think subjectively while making decisions. However, one of them ISN’T repricing. Inputting data doesn’t necessitate a lot of high-level thinking and once you are done setting the rules and price limits, you won’t even have to worry about repricing. A good repricer will let you customize repricing based on various factors and tailor your strategy accordingly. These factors usually include but are not limited to competitor type based on fulfillment method being used, whether you wish to compete with Buy Box winners or not, and so on.
Increases Your Chance of Winning the Buy Box
There are a lot of factors that Amazon notices while assigning the Buy Box to sellers, so why not get a repricing tool that makes it a lot easier for you to stay Buy Box eligible and win it eventually for your business? Allow Alpha Repricer to handle all your product prices to help you stay competitive while you focus on improving other areas to win the Buy Box. Moreover, Alpha Repricer’s Buy Box hunter wins the Buy Box and also attains it at the highest price possible.
Increase in Sales
When you offer attractive product prices, the buyers automatically start buying items from you instead of going to other sellers. As a result, you get maximum sales and of course, earn higher profits.
2. Cons of Automated Repricing:
Can Be A Little Costly
Investing in an Amazon repricing tool is justified when you are dealing with many SKUs and want to stay competitive. But if you are not dealing with many products or your products are not as profitable, then signing up with a repricer might not be a good option. However, there are a few repricers out there that support new sellers and help them get the profit they need to grow their business. Research about them if you want to go for a cost-effective repricing option.
It’s a common misconception that continually adjusting your product prices will lead your products to price wars among other competitors, although this isn’t accurate. Yes, your repricer can keep adjusting your product prices to stay ahead among other sellers but your product prices will never fall below the minimum price limit you set. Your profit margin will never be compromised. Whether you become a part of the price war or not is completely your choice but a good repricer will always give you the option to opt-out of it if you don’t want to.
Can Be Difficult to Understand
Even when most of the repricers are quite easy to use and come with all the assistance you need, one can find repricers complicated, however, you must try it first before you make a judgment. A good repricing tool comes with easy to understand information about how it is to be used and you should also see if the tool offers live customer support. This would make a lot of difference.
Even when the cons are a lot lesser than the advantages, if you are still skeptical about using an Amazon repricing tool then start with us. Sign up for our 14-day free trial and test out if our features work for you.