If you’re selling on Amazon, you’re likely familiar with the low margins in a competitive market. Additionally, it doesn’t help when Amazon competes directly with you and their vendors by making agreements with distributor
Even if you’re private labeling without a competitor, Amazon will eventually set an average or suggested selling price based on several orders. Throughout the product’s lifecycle, whether or not you have competitors, raising your listing price (due to increased production costs) can result in the buy box disappearing from your page. Since many consumers, including Repricer AI staff, prefer to buy from listings with the buy box, you might start losing sales. Amazon customer support is unlikely to help resolve this issue.
It’s important to remember that Amazon has its own competitors, such as Walmart and Target. They compete over many products and rely on commissions from your sales. If Amazon loses pricing competitiveness and sales to Walmart, it affects their profits and, ultimately, their investors.
As you may know, Amazon offers a basic repricing service through Seller Central, but it has several limitations:
- Amazon will consistently lower your price if competitors have lower prices.
- Amazon aims to offer lower prices to its customers, reducing your price as a result.
- Amazon doesn’t change your price frequently, as it requires significant computing power, even with Amazon Web Services. Real-time repricing for all sellers is unlikely.
- Amazon has extensive data on how low sellers can price products, product performance, and impressions. Providing your minimum prices to Amazon may not be ideal, as it gives them valuable data for competing against you.
- Amazon doesn’t favor markups and thrives on a high-volume, low-margin business model.
It’s well-known that Amazon prioritizes consumers over sellers. To win the buy box and maintain a competitive edge, you need a dedicated Amazon repricer.
Repricer AI is here to help. We are fast, reliable, and focused on supporting Amazon sellers. Our machine learning-powered repricing algorithms are designed to optimize your pricing strategy and help you succeed.
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