Manual repricing might seem like a great option for your Amazon storefront. After all, you can reset your item price as often as you like from your Seller Central dashboard.
On the other hand, there are a few risks to think about when it comes to manually repricing your products. In this blog post, we’ll outline three factors to consider when developing your Amazon pricing strategy.
Risk #1: Human Error
Manually repricing items seems simple…until you make a costly error. One typo could result in less sales or even way too many sales. If you accidentally add an extra numeral, buyers may decide that the product is out of their price range. Forgetting a numeral could mean that your products fly out of the fulfillment center, but at a much lower cost than you intended.
Miscalculations can also impact your pricing strategy. For example, incorrectly calculating the minimum price for making a profit can have disastrous consequences. Selling products at a loss can cause major cash flow issues and make it difficult for you to keep inventory in stock.
Risk #2: Missed Opportunities
Competition is fierce on the Amazon marketplace, especially in top categories. Product pricing is one way to stand out from the crowd. However, if you’re updating your prices manually it’s difficult to stay competitive. Manual repricing is time consuming and repetitive, so it’s likely that you’ll probably only update your prices once per day at most. You might think you have a competitive price based on what you saw the last time you checked, but someone else could have beaten your price within minutes of your last change. This could result in days or weeks of missed sales.
The Amazon Buy Box algorithm involves many factors that you might not know to consider when repricing, such as:
The algorithm is also very subject to change. Manual repricing could mean missing out on the chance to win the Buy Box. If you have better metrics than your competitors, auto-repricing can allow you to price slightly higher than them and still win the Buy Box.
Risk #3: Burn Out
Manually repricing your items can feel like a losing battle. At first, you’re excited (maybe even a little obsessive) about your pricing strategy. But as you add items to your inventory and the weeks wear on, manual repricing can become a big chore. Repricing burn out is very common, causing some sellers to just give up the manual process.
An automated repricing tool can mitigate all three of these common risks associated with manual repricing. Consider automating your pricing strategy today with a tool like Smart Price.
Originally published on February 15, 2018, updated January 23, 2020
This post is accurate as of the date of publication. Some features and information may have changed due to product updates or Amazon policy changes.
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