Repricing Software: A Must-Have Tool for eCommerce
Repricing software is an automated tool for adjusting product or service prices of online sellers in real time. The repricing is based on repricing rules and strategies set by the users of repricing software.
Repricing software functions by continuously monitoring the market and factors influencing market prices and automating the complex task of price management. It collects data, applies user-defined rules, makes real-time adjustments, and continuously optimizes prices.
The number of price adjustments depends on the capabilities each repricing software has. The more frequent the better, as certain sectors of the eCommerce industry are more competitive and dynamic than others. For example, according to Statista, it is estimated that the consumer electronics and fashion sector have gross profits almost the same as all other eCommerce sectors jointly. Now, the audio and video equipment market as a subsector of consumer electronics is therefore highly competitive and very dynamic concerning prices.
One Australian retailer in the music industry has over 1800 music and audio equipment products. Their market is so dynamic that they adjust prices every 3 to 5 hours utilizing repricing software to stay competitive and maximize profits.
Competitors’ activities will only be relevant to some businesses, but in most cases are. See below the most common parameters to base your repricing rules:
- Product prices
- Competitors’ product prices
- Product’s stock availability
- Product’s cost price
- Desired profit margin
- Targeted price (MAP, MSRP, or RRP)
- Desired pricing position
Let’s see another real-life example of repricing. One online store from the US selling collectible cards set repricing rules based on the desired pricing position. Their pricing rule was the same across categories and set to be the second cheapest among the 7 most important competitors.
We have given two examples of how online retailers utilize repricing software, but others also benefit from this software solution.
Who is repricing software for?
Online retailers
You can already grasp a huge spectrum of benefits pricing software can provide to online retailers. Saving resources, primarily time and budget for certain companies can be invaluable, especially in allowing them to focus on other business areas such as customer service or product sourcing.
Brands and Manufacturers
Brands and manufacturers selling directly to consumers can leverage repricing software to maintain consistent and competitive pricing across multiple platforms. This helps protect their brand integrity by avoiding MAP violations and ensures prices remain appealing. Additionally, repricing software helps these sellers respond quickly to market changes and optimize pricing strategies to maximize profits and inventory turnover.
Dropshippers
As dropshippers rely on suppliers to fulfill orders, staying competitive is crucial. Repricing software allows them to automatically adjust their prices in response to competitors, ensuring they attract buyers while maintaining healthy profit margins. This automation allows for managing large product catalogs efficiently.
Third-Party Sellers
Repricing software is essential for winning the buy box and increasing sales volumes when selling on platforms like Amazon, eBay, and Walmart. Manually adjusting prices is almost impossible with that high competition and frequent price fluctuations. Repricing software automates this process, ensuring sellers stay competitive and maximize their chances of being chosen by buyers.
Amazon repricer as a game changer
Amazon accounts for 37.6% of eCommerce sales, the highest market share of all eCommerce companies. The competitiveness of the Amazon marketplace is fierce, therefore the demand for Amazon repricing software is high. Not every repricing software can monitor, and what is more important successfully monitor marketplaces.
On Amazon, winning the buy box is crucial for driving sales, as it prominently features a seller’s product for purchase, heavily influencing buyer decisions. An Amazon repricer automates adjusting prices in real-time based on competitor prices, demand fluctuations, and inventory levels. It ensures that sellers remain competitive without constantly monitoring and manually updating their prices, which is time-consuming and impractical given the hundreds of listings many sellers manage.
Additionally, the marketplace’s algorithm heavily favors competitively priced items, making dynamic pricing adjustments essential for maintaining visibility and sales performance. Those utilizing repricing software can stay ahead of competitors and enhance overall business efficiency and profitability.
Price2Spy’s customized repricing
The level of customizability sets the leading from decent repricing software on the market. The ability to tailor your pricing rules and strategies according to your business needs often can not be implemented via default options.
The flexibility of repricing modules sets Price2Spy, one of the pioneers in repricing, apart from the competition. We have already given two examples of custom repricing above. Those were Price2Spy’s repricing use cases.
FAQs
How can repricing be performed?
Price2Spy repricing can be done in two ways. Indirect repricing – software prepares a CVS file with all products requiring new prices and suggests new prices for a client’s consideration and approval. Direct repricing – software integrates with a client’s store and performs changes automatically.
Can repricing software identify products where my pricing is not competitive?
Price2Spy can identify your pricing opportunities after you define your pricing strategy. By default, we offer three repricing opportunities: clever raise (when your prices are the lowest on the market but way below the next chest competitor), clever drop (when your products are overpriced while your cost price and profit margin allow lower prices), and stock opportunities (products your competitors have in stock and you don’t).
Can I define the repricing rules for my store?
Besides default opportunities, Price2Spy allows custom solutions. When clients need more flexibility in terms of rules and parameters, they are free to request. Contact support@price2spy.com and the Price2Spy team will suggest a custom repricing tailored to your individual needs.
