Here are the recommended steps and best practices to learn about repricing options and successfully create repricing strategies, along with videos to guide you through this process.
Here are a series of videos to walk you through how to successfully reprice using Marketplace Management.
- Profit Protection: Understanding Maximum and Minimum Prices
- Understanding Preferred (Fallback) Price
- Amazon Repricing Strategy - Win the Buy Box
- eBay Repricing Strategy - Target Rank
- Walmart Repricing Strategy - Win the Buy Box
- Other Strategies: Price Mirror, Sales Velocity, Amazon Target Rank
Profit Protection: Understanding Maximum and Minimum Prices
There are three main ways to calculate minimum and maximum prices:
- The recommended method is the Dynamic Profit-Based Calculation, which takes into account product cost, fulfillment cost, channel fees, and desired profit margin.
- The second option is the Custom Formula, which allows users to choose whether to base the calculation on product cost, map price, or retail price, and set a desired amount over that cost as the minimum or maximum price.
- The third option is Manual Assignment, where users can manually input their desired minimum and maximum prices.
Understanding Preferred (Fallback) Price
A fallback strategy is what happens when there is no buy box for an item or there are no qualified competitors.- The first option for a fallback strategy is the Preferred Price, which allows the seller to set a price that they ideally want to sell the item for. This is the recommended setting for Fallback pricing.
- The second option is the target position, which allows the seller to target the lowest price position if there is no buy box or qualified competitors. This is not available for Walmart and not recommended for ebay.
- The last option is none, which leaves the price exactly where it was before the buy box was removed or the last qualified competitor dropped off.
It is important to understand how each option for fallback strategies works to better understand how prices will change as the market changes.
- Sellers can check the pricing history to see if the price is currently sitting at the preferred price due to no change in competition.
- Checking the exclusions in the assigned pricing strategy is recommended if the price is staying steady.
Amazon Repricing Strategy - Win the Buy Box
The "win the buy box" strategy involves using competitor data to determine the potential buy box price on Amazon. Factors such as fulfillment type, competitor's feedback, and price are taken into consideration when determining the highest possible price to secure the buy box.
eBay Repricing Strategy - Target Rank
The target position strategy on eBay involves pricing your listings based on the position you want to have among your competitors. You can choose to price lower, match, or price higher than your competition.
- The strategy reprices every two hours and setup is easy by navigating to the pricing strategy page on eBay.
- To create a target position strategy, you need to select eBay as the sales channel, choose the desired position (from lowest to fifth lowest price), and decide whether to set below, match, or set above the competitor's prices by a dollar amount or percentage.
Walmart Repricing Strategy - Win the Buy Box
The strategy is the "win the buy box" strategy for Walmart and the basis of the strategy is to undercut the current buy box price by a penny in order to win the buy box.
- Once the buy box is captured, the strategy holds onto it as long as possible.
- The strategy will only reprice if the item loses the buy box.
- Items that don't own the buy box will reprice down every 15 minutes until they reach the buy box price or the minimum price, whichever comes first.
- There is a setting that allows the price to jump up to the preferred price if the item is at the minimum price and does not own the buy box.