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What is Amazon Repricing?

In simple terms, Amazon repricing is the changing of the prices of products on Amazon’s marketplace.

Amazon repricing in a nutshell

Third-party sellers often change the prices of their offerings because of factors like cost, shipping, competition, and variations in industry value. In the case of Amazon repricing, competition on its marketplaces is what’s prompting this trend.

What kind of competition prompts repricing? Well, think about this: On huge platforms like Walmart Marketplace and Amazon there will be multiple sellers for almost any product.

Shoppers initially compare products as they review price after price; the chance of them purchasing higher-priced items is much smaller. If a seller’s item is not being purchased due to price, sales don’t happen. Therefore, sellers are motivated to price their items competitively.

Several different factors influence Amazon repricing trends on its marketplaces. The massive scale of seller platforms is one. Another is the high level of sophistication exhibited by the ranking systems the major platforms employ. And finally, automation technology that enables easier repricing is now readily available.

Online marketplaces like Amazon experience a volume of traffic that is staggering. This means that repricing activities are also massive in scale. Amazon reprices tens of millions of listings every day, making them tough for other retailers to compete against. This is particularly evident when you consider that even brick-and-mortar giants like Walmart and BestBuy each only made between 52 and 54 thousand price changes in the major shopping month of November.

More factors that influence Amazon repricing trends

Another factor at play here is the sheer level of sophistication present in online marketplace platforms. On Amazon, for example, an item’s price change is not always the only initiator of another item’s repricing.

Depending on what kind of repricing strategy a seller has in place, factors like seller feedback, ratings, and fulfillment type (FBA or FBM/MFN) can also be considered during repricing.

Finally, the expansive availability of automatic repricing technologies has arguably made repricing software a necessity rather than an option. Depending on how many listings they had, third party sellers used to be able to manually scan their competitors’ prices and adjust theirs accordingly.

With so many sellers and items on Amazon, it has become nearly impossible to manually check competitor prices. That’s why so many sellers are starting to rely on repricing software.

And how do you compete against a repricer?
By using one, too.

How can you differentiate your listings from other sellers using repricers?
By employing targeted strategies.

Amazon repricing: the bottom line

Automated repricing of your products on Amazon or other eCommerce marketplaces is the key to beating the competition and increasing sales. Without a repricer, sellers miss out on sales and profits.

Employing a repricing tool is perhaps the smartest thing a seller can do. As sellers become savvier and the marketplace competition grows increasingly fierce, a repricer helps sellers stay competitive, protect their bottom line, grow profit margins, and save time for procuring new products and servicing an abundance of customer orders.

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