Marketplace repricing – What does it mean?
In a simple words, marketplace repricing means a seller making changes in the price of their products they offer on platforms that includes Amazon and eBay. It is mainly done for a competitive advantage.
How can I increase my marketplace sales with repricing?
Repricing a product too low can reduce profit margin and pricing a product too high may not bring in sales. Market repricing has to be planned well, because an uncompetitive price will push your products way behind other products listed on the marketplace, which in turn will affect the bottom line of your business. Therefore, to be a successful marketplace seller you need to find ways that will always keep your products at a very competitive rate to drive-in more sales and increase your ROI.
1 – Determine your cost
Your product’s price listed on marketplaces will determine the conversion rates. Therefore it is always suggested to determine direct cost – including stock, shipping, packing, and other indirect cost applied with those product. This way you get your unit cost, by which you can start testing repricing your products which will help you gain a deeper understanding what repricers do and in the end settle for the most competitive price that will bring in more sales.
2 – Know which product to reprice
Repricing multiple products at a time without preparation can lead to poor sales, and in the end affects the bottom line of your business. So, it is always suggested to select few products to represent the whole, which makes it easier for you to test which set of products has more response from buyers. This way working with small batches will help you focus more thoroughly and quickly, and allows you to increase your marketplace sales with repricing.
3 – Implement a repricing tool
Automating repricing has it’s own pro’s and con’s, as implementing a repricing tool may not work the same on all your marketplaces, but having it in place will help you understand and learn what are the effects of repricing and how far it benefits your business. It is always suggested to implement the repricer solution offered by the same marketplace through which you sell your products, as it will help you better understand your product’s demand and reprice them at a very competitive price, which in turn will increase the chances of sales and boost profit margins.
4 – Test and Adjust
Having a repricing tool for your marketplaces is good, but that’s not all. Because what may work now does not mean it will work forever. So, it becomes crucial for you to test the benefits that your are getting from the repricing tool, review them and finally make adjustments. This way you can make better decisions and focus more on the best selling products.
Repricing tool available in the market
There are two ways of getting a repricing tool: a repricing tool offered by specialist who are just focused in repricing and the other, a built-in repricing tool offered by marketplaces.
A specialist repricing tool will benefit you the most as they are focused on performing one function, hence they will do their job well. On the other hand, using a repricing tool offered by your marketplace, it becomes easy for you as a start-up to understand and optimize repricing.
In a platform where millions of sellers are performing the same job, it becomes difficult to manually track and reprice your products, therefore automating repricing will make for an utmost benefit, bringing in more sales than you expect!
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