This article will cover how the risk tolerance and precision settings work for our Algorithmic Buy Box pricing strategy for Amazon
What does the Risk Tolerance Slider do?
This slider determines the range of prices your strategy will consider when searching for the optimal Buy Box price. This range is independent of your minimum and maximum prices, which always take priority when pricing.
- High-risk tolerance represents a wider range of possible prices and low-risk tolerance is a much narrower range
What Risk Tolerance setting should I use?
- High-risk tolerance is recommended when your competitors have very different attributed than you such as fulfillment type or feedback score.
Balanced-risk tolerance is recommended when you're not sure how you stack up in comparison with other sellers. We recommend you start off with a balanced risk tolerance and make adjustments as needed. Low-risk tolerance is recommended when your competitors' feedback and fulfillment type are similar to yours.
What does the Precision Slider do?
This slider the speed and accuracy of your Buy Box strategy when searching for the optimal Buy Box price Remember: The optimal Buy Box price is the highest possible price for your item while still capturing the Buy Box
What Precision level should I use?
In general, we recommend beginning with a balanced precision setting when you are starting with SellerActive and make necessary changes as you become more familiar with our system and how your pricing strategy is operating.
- High precision will take longer to capture the Buy Box but will be land on the optimal price which will allow you to maximize profits. This is only recommended when you have low competition for your products.
- Balanced precision will provide an even trade-off between capturing the Buy Box quickly and landing at an optimal price. A balance setting is recommended when your competition is unknown.
- Low precision will allow this strategy to quickly settle on a price to maximize your time in the Buy Box. This is recommended for products with many competitors where the Buy Box owner is constantly changing