Consumers might be paying higher price on Amazon than necessary now-a-days. This is due to automated pricing tools like “Repricer” which claims to increase company profit margin with the set it and forget it rules of prices. The screenshot below shows how you can set rules:
Here is another way of using Repricer : Company A is selling a product for £100. The pricing rule is
- Keep the base price lowest between £100 – £102 to ensure it is the lowest
- Keep the ceiling price much higher – £110
In this scenario, product remains cheaper within the base price and when competition drops the price rise. This will have positive impact on profit margin. The competition might drop because Company B had only few items in stock and got sold out or there isn’t inventory system in place to relist products automatically.
So if you are ready to give it a go, there are plenty of these tools. Here’s a screenshot of few:
If you would like to know more about Repricer have a look at this blog post on Tamebay.
It is good idea to keep your products cheapest and when there is an opportunity to maximise profit “Repricer” tool is great. It is all about smart pricing as they say!
Remember customers don’t only look for cheapest product; they look for other things like customer service and delivery times.
If you have used Repricer, I would love to hear the impact in your business.