Our name is RepricerExpress, so it’s a safe bet that we’re going to say there aren’t really any disadvantages to using automated pricing software on Amazon and eBay! But no, really, we’re going to take a look at the pros and cons of using repricing software (again, no cons whatsoever) for different kinds of Amazon sellers.
Brief Run-down of Repricing
Most of you are probably familiar with repricing software, but just in case there are any beginner sellers new onto the scene, here’s what you need to know.
Repricing software essentially tweaks the prices of your products so they’re competitively in line with your competitors. You input min and max values and rules about it, so the program knows when to raise or drop your prices. The biggest benefit is saving time, as it allows you to skip having to manually enter prices for every single product.
So, having said that, let’s look at the pros and cons of automatic Amazon pricing!
Pros: Almost Too Many to List!
- Saves time: The more products you have, the more time-consuming it is to change the prices on each one every time your competitors’ prices fluctuate. Plus, as soon as you change yours, you’ll just have to change it again because you can bet your competitors are using repricing software.
- Increased work efficiency: The time you save on not having to manually alter prices lets you put that time towards other aspects of your business, like, oh, say, actually growing it.
- Decreased chance of errors: As watchful as you are over your business, it’s inevitable that you’re going to slip up. And prices are not an area where you want that to happen. Instead, use software whose sole purpose it is to simply change numbers based on the input you give it.
- Easy to use: There are so many parts of your business that require complex, subjective thinking. Repricing is not one of them. There’s almost no level of super high meta-thinking required in inputting data.
- Higher chance of a Buy Box: There are sooo many factors that go into obtaining a Buy Box, so why wouldn’t you try and stack the odds in your favour as much as possible? Once you figure out how your competitors are setting prices, let RepricerExpress do all the dirty work for you while you go after that Buy Box.
- Increased sales: When your prices are really attractive to buyers, they’re likelier to buy from you. Hello, higher profit margins!
- Cost: If you’ve got oodles of listings and SKUs, of course it makes sense to pay the cost for repricing software. But what if you’re the kind of seller who’s either on the margin of big and small, or just not selling that many items? It might not be the most cost-effective step to take.
- Price war: There’s this myth that constantly fluctuating prices will lead to price wars among sellers, but it’s not entirely true. While you and your competitors can play chicken all you want, your prices will never go below the min value you’ve in-putted.
- Lower profit margins: In the ‘pros’ list, we mentioned how you can have higher profit margins because of increased sales. The reverse can also happen if you and your competitors hit your min values because it’s a buyer’s, not seller’s, market.
- Compatibility: It kinda goes without saying that RepricerExpress is the best, easiest and simplest repricing software out there to use, but it’s all about personality fit at the end of the day. It’s like Google: it may be the best and simplest search engine to use, but that doesn’t mean it’ll work for every single person. And that’s okay.