SellerActive attempts to optimize your price by pricing up and down in a strategic way that lets us "check" whether you will capture the Buy Box at different price points. We start by making our best price estimate for capturing the Buy Box based on your selling statistics in comparison to your competitors selling statistics.
In the example image below, a red circle indicates we haven't captured the buy box from a competitor and a green circle indicates we have. Our first estimate prices your item to $50. Since you did not capture the Buy Box at that price we reduced your price to $25. You still didn't capture the Buy Box at that price so your price was reduced again to $12. At this price, you did capture the Buy Box so we increased your price to $18. We repeated this pattern until we settled on the optimal price of $20. We know $20 is the optimal price because we've tested a price of $21 and knew that you lost the Buy Box, so we cannot increase your price any further and remain in the Buy Box.
This is our recommended strategy for your Amazon inventory (especially FBA) when you have competitors on the same ASIN.