Automated repricing is an efficient way of keeping your prices competitive. Widely customized options of Repricing Rule allow you to find the most effective way of winning the Buy Box and stay ahead of the competition.

There are several stages repricing algorithm proceeds with. Please refer to Figure 1 below. Using the Rule options, you can determine the Service behavior through the whole cycle of repricing. 

Figure 1: Stages of the repricing process

 

So, how to set up and customize your Repricing Rule? The details are given below.

Base configurations

To start with, you have to provide the base configurations for your Rule. Please take a look at Figure 2 below.

Figure 2: Base configurations of the Repricing Rule

If there are no Competitors

Your success on Amazon depends on the various marketplace conditions. Competition is the crucial one. Have you ever thought how well you understand your competitors? When it comes to a product pricing, it is a good practice to analyze your competitive environment.

On the first stage of repricing cycle, Service checks if you have competitors for the Amazon product.

In case you are the only seller, there is no need to compete. You can choose to set the max price, for example, and obtain the maximum profit.

The values you can set for 'If there are no Competitors' option are shown in Figure 3 below.

Figure 3: 'If there are no Competitors' option


If at least one competitor identified, repricing process will continue. Service will check whether you are the Buy Box Winner next.

If you are the Buy Box Winner

Buy Box is a kind of grand prize for each Amazon seller. If you win the Buy Box, you win the sales.

'If you are the Buy Box Winner' option determines how the Service should adjust your product price at when you win that 'grand prize'. For example, you can set 'Stop repricing' to stay keeping the top placement on the product page.

If you are not the Buy Box Winner yet, repricing algorithm will proceed to the next stage.

See the values available for 'If You are the Buy Box Winner' option in Figure 4 below.

Figure 4: 'If You are the Buy Box Winner' option

 

Note, if you use 'Compete With Buy Box Winner' strategy and you win the Buy Box, the Repricing will be stopped automatically although 'If you are the Buy Box Winner' option is set as Not Configured.

Custom Scenario

Custom Scenario allows you to reprice your items based on:

  • a presence of the particular merchant;
  • specific features of the competitor's offer;
  • specific features which your offer possesses;
  • your seller rating.

Please refer to Figure 5 below.

Figure 5: Adding Custom Scenario

 

So, when does it make sense to add a Custom Scenario?

Example #1. Amazon is your main competitor

Amazon can be your toughest competitor. A great customer service, affordable pricing, and quick shipping make Amazon a trusted seller and puts it in the advantageous position. However, you can still capture the Buy Box. If you are a Featured Merchant and meet the seller performance targets, your pricing becomes a decisive factor in the winning of Buy Box.

Using the Custom Scenario, your price can be automatically adjusted to the value which gives you an edge. Once you are on a par with Amazon, it will share the Buy Box with you.

Example #2. Your offer is the only one which is fulfilled via AFN

If you use the Amazon fulfillment network and have great performance metrics, most likely you will win the Buy Box no matter what your price is.

Amazon emphasizes the importance of matching its standards to become a Buy Box holder. By using AFN you are able to meet those standards. If you are fulfilled by Amazon, you have an obvious edge over the non-FBA sellers even if they priced lower.

It means that you can sell your Item at the price higher than your competitor's one. Configure the Custom Scenario appropriately to increase your profit margin.

Example #3. Your seller rating is not high enough

Seller rating is an overall measure of customer satisfaction from the product or service you provide. High rated sellers are more reliable and it is a better option for any buyer. If your rating is not yet high enough, you can provide some kind of price manipulation to attract more customers. Configure your Scenario appropriately.

To edit the Custom Scenario configurations, please complete the following steps:

  • go to the Rules section;
  • open the Rule Details;
  • under the Additional tab, Add New Scenario or Remove the one you no longer need to use;
  • Save the changes.

If Custom Scenarios are not configured or none of the preset scenarios is met, the product price will be managed via Repricing Strategy settings.

Repricing Strategy

Repricing Service provides you with a ready-made set of the repricing strategies. Please refer to Figure 6 below. Choose one which will suit your final goal the best.

Figure 6: Repricing Strategies

 

Each Repricing Strategy includes the specific options, based on which the competitive price is set. The successfully repriced items are marked with a special achievement label.

If the goal is not achieved for some reasons, you can still control your pricing. Select which action should be performed:

  • Set Regular Price - the regular price value will be applied automatically;
  • Set Min Price - the mIn price value will be applied automatically;
  • Set Max Price - the max price value will be applied automatically;
  • Stop Repricing - the last specified value remains, the dynamic price management will be stopped for this product;
  • Use Alternative Rule - another Rule will be applied automatically.

Below you can find a short overview of each Strategy available for the Rule configuring.

Compete with the Lowest Price

'Compete with the Lowest Price' strategy allows you to beat the lowest-priced offer.

Set your preferences for 'Your Price has to be' option: specify which difference should be between your price and the competitor's one. Please take a look at Figure 7.

Figure 7: 'Compete with the Lowest Price' strategy configurations


 Provide the extra settings to make the price calculation flexible:

- 'Allow the Price to be closer than specified to Achieve the Goal' option enabled means that the value set for 'lower by' or 'higher by' option can have a deviation to achieve the goal.

Take a look at an example:

Initial settings

Your

current price

Your

min price

Lowest-priced

offer

Repricing

settings

15$11$12$to be lower by 5$

Resulting values

Calculated

Actual

7$11$
Explanation
  • The calculated value goes beyond your min threshold and cannot be set.
    Therefore, the goal will not be achieved. If you enable the 'Allow the Price to be
    closer than specified to Achieve the Goal' option, Service will make the
    calculated price closer to your threshold. In our example, it is your min price.
    As a result, the goal is considered to be achieved.

- 'Allow the Price to match competitive Price to Achieve the Goal' option enabled means that your offer price can match competitor's price to achieve the goal. The option becomes available after 'Allow the Price to be closer than specified to Achieve the Goal' is enabled.

For example,

Initial settings

Your

current price

Your

min price

Lowest-priced

Offer

Repricing

settings

15$11$11$to be lower by 3$

Resulting values

Calculated

Actual

8$11$
Explanation
  • The calculated value goes beyond your min threshold and cannot be set.
    Therefore, the goal will not be achieved.
    With the 'Allow the Price to be closer than specified to Achieve the Goal' option
    enabled, Service will make the calculated value closer to your threshold.
    But if your threshold value equals the competitor's price,
    the goal 'to be lower' cannot be achieved.
    After you enable the 'Allow the Price to match competitive Price
    to Achieve the Goal' option, Service will be able to match your price
    with the competitor's one to consider your goal achieved.

Take Better Price Position

'Take Better Price Position' strategy allows you to take a more advantageous price position for Amazon product.

Select the number of price positions you want to compete within and specify what your price value should be. Please refer to Figure 8 below.

Figure 8: 'Take Better Price Position' strategy configurations


Please refer to the following example:

Initial settings

Your

current price

Your

min price

Your

max price

Competitors'

Price

Repricing

settings

14$

6$

15$ 

1st - 5$

2nd - 10$

3rd - 13$

to compete among the first 3 positions

+

to be lower by 2$

Resulting values

Calculated

Actual

8$8$
Explanation
  • The very first offer priced at 5$ will be disregarded as it is lower than your min threshold.
    Next, Service will try to calculate your price based on the 2nd position priced at 10$.
    The resulting value is 8$. Since this value suits your thresholds, it will be set for your product.
    As a result, your offer will move from the 4th to 2nd price position.

Provide the extra settings to make the price calculation flexible:

- 'Allow the Price to be closer than specified to Achieve the Goal' option enabled means that the value set for 'lower by' or 'higher by' option can have a deviation to achieve the goal.

Take a look at the table:

Initial settings

Your

current price

Your

min price

Your

max price

Competitors'

Price

Repricing

settings

14$

6$

15$ 

1st - 5$

2nd - 10$

3rd - 13$

to compete among the first 3 positions

+

to be lower by 5$

Resulting values

Calculated

Actual

5$6$
Explanation
  • The very first offer priced at 5$ will be disregarded as it is lower than your min threshold.
    Next, Service will try to calculate your price based on the 2nd position priced at 10$.
    The resulting value is 5$. This value is lower than your min price and cannot be set.
    If you enable the 'Allow the Price to be closer than specified to Achieve the Goal' option,
    Service will make the calculated price closer to your threshold. Your min price will be set
    for the Item. As a result, your offer will take the 2nd price position instead of 4th.
    The goal is considered to be achieved.

- 'Allow the Price to match competitive Price to Achieve the Goal' option enabled means that your offer price can match competitor's price to achieve the goal. The option becomes available after 'Allow the Price to be closer than specified to Achieve the Goal' is enabled.

For example,

Initial settings

Your

current price

Your

min price

Your

max price

Competitors'

Price

Repricing

settings

14$

10$

15$ 

1st - 5$

2nd - 10$

3rd - 13$

to compete among the first 3 positions

+

to be lower by 5$

Resulting values

Calculated

Actual

5$10$
Explanation
  • The very first offer priced at 5$ will be disregarded as it is lower than your min threshold.
    Next, Service will try to calculate your price based on the 2nd position priced at 10$.
    The resulting value is 5$. This value is lower than your min price and cannot be set.
    With the 'Allow the Price to be closer than specified to Achieve the Goal' option enabled,
    But if your threshold value equals the competitor's price, the goal 'to be lower' cannot
    be achieved. After you enable the 'Allow the Price to match competitive Price to Achieve
    the Goal' option, Service will be able to match your price with the competitor's one
    to consider your goal achieved.

Compete with the Buy Box Winner

'Compete with the Buy Box Winner' strategy allows you to beat the Buy Box Winner with the lowest price.

Specify which difference should be between your price and the competitor's one. Please refer to Figure 9 below.

Figure 9: 'Compete with the Buy Box Winner' strategy configurations


Note, if you use 'Compete With Buy Box Winner' strategy and you win the Buy Box, the Repricing will be stopped automatically although 'If you are the Buy Box Winner' option is set as Not Configured.

Provide the extra settings to make the price calculation flexible:

- 'Allow the Price to be closer than specified to Achieve the Goal' option enabled means that the value set for 'lower by' or 'higher by' option can have a deviation to achieve the goal.

Take a look at an example:

Initial settings

Your

current price

Your

min price

Buy Box Winner's

Price

Repricing

settings

15$11$12$to be lower by 5$

Resulting values

Calculated

Actual

7$11$
Explanation
  • The calculated value goes beyond your min threshold and cannot be set,
    therefore, the goal will not be achieved. With the 'Allow the Price to be closer
    than specified to Achieve the Goal' option enabled, Service will make the
    calculated price closer to your threshold. In our example, it is your min price.
    As a result, the goal is considered to be achieved.

- 'Allow the Price to match competitive Price to Achieve the Goal' option enabled means that your offer price can match competitor's price to achieve the goal. The option becomes available after 'Allow the Price to be closer than specified to Achieve the Goal' is enabled.

For example,

Initial settings

Your

current price

Your

min price

Buy Box Winner's

Price

Repricing

settings

15$11$11$to be lower by 3$

Resulting values

Calculated

Actual

8$11$
Explanation
  • The calculated value goes beyond your min threshold and cannot be set,
    therefore, the goal will not be achieved.
    With the 'Allow the Price to be closer than specified to Achieve the Goal'
    option enabled, Service will make the calculated value closer to your
    threshold. But if your threshold value equals the competitor's price,
    the goal 'to be lower' cannot be achieved. After you enable
    the 'Allow the Price to match competitive Price to Achieve the Goal' option,
    Service will be able to match your price with the competitor's one
    to consider your goal achieved.

-  'If no Buy Box Winners' option: select which action should be provided when there are no Buy Box Winners.

Compete with the Specified Merchant

'Compete with the Specified Merchant' strategy allows you to beat a particular Merchant. Please take a look at Figure 10 below.

Figure 10: 'Compete with the Specified Merchant' strategy configurations


Provide the merchant ID of the seller you would like to compete with, and set your preferences for 'Your Price has to be' option.

The merchant ID can be found under the Product Details > Competitors tab once you mouse over a seller nick. Please refer to Figure 11 below.

Figure 11: Merchant ID

Provide the extra settings to make price calculation flexible:

- 'Allow the Price to be closer than specified to Achieve the Goal' option enabled means that the value set for 'lower by' or 'higher by' option can have a deviation to achieve the goal.

Take a look at the table:

Initial settings

Your

current price

Your

min price

Buy Box Winner's

Price

Repricing

settings

15$11$12$to be lower by 5$

Resulting values

Calculated

Actual

7$11$
Explanation
  • The calculated value goes beyond your min threshold and cannot be set.
    Therefore, the goal will not be achieved. If you enable the 'Allow the Price to be
    closer than specified to Achieve the Goal' option, Service will make the
    calculated price closer to your threshold. In our example, it is your min price.
    As a result, the goal is considered to be achieved.

- 'Allow the Price to match competitive Price to Achieve the Goal' option enabled means that your offer price can match competitor's price to achieve the goal. The option becomes available after 'Allow the Price to be closer than specified to Achieve the Goal' is enabled.

For example,

Initial settings

Your

current price

Your

max price

Competitor's

Price

Repricing

settings

15$17$17$to be higher by 3$

Resulting values

Calculated

Actual

20$17$
Explanation
  • The calculated value goes beyond your max threshold and cannot be set.
    Therefore, the goal will not be achieved.
    With the 'Allow the Price to be closer than specified to Achieve the Goal' option
    enabled, Service will make the calculated value closer to your threshold.
    But if your threshold value equals the competitor's price,
    the goal 'to be higher' cannot be achieved.
    After you enable the 'Allow the Price to match competitive Price
    to Achieve the Goal' option, Service will be able to match your price
    with the competitor's one to consider your goal achieved.

-  'If no Specified Merchant' option: select which action should be provided when specified merchant is not presented for the ASIN.

Once you configure all the options, save your Rule. Select the appropriate products you want to manage via these settings and assign the Rule using the 'Actions' menu.

Be flexible in your settings and timely adapt to the market conjuncture. You are able to change the Strategy on the fly as Figure 12 shows below.

Figure 12: Changing the Repricing Strategy

Be attentive, after the Rule changes are saved, product prices will be immediately recalculated under the newly specified settings.

Please review the Important notes before start repricing.

Find the answers to your specific questions in the FAQ section.