A Beginner’s Guide – How Amazon Repricing Software Works!
What exactly is Amazon Repricing Software?
E-commerce is no longer only about buying and selling. There’s a lot which goes behind the scenes which includes massive planning, strategy, coordination and execution. From inventory to pricing, there are lot of elements which needs to be examined for operations and increasing business.
Amazon Repricing Software is one of the modern software that helps ecommerce businesses reduce their workload and efforts. As the name suggests, it’s a repricing software which allows sellers on Amazon to automatically and quickly update their product prices when compared to their competitors. You can also call it as sales performance management software.
When your business has fewer products to sell on Amazon, manual price checks and updates is doable. But in the long run, when your operations expand, it would be impossible to maintain a track of the same manually.
It’s a solution which regularly adjusts seller’s prices as per the changing prices of the competitors ensuring to maintain their visibility and ranking. And when the seller has set his maximum and minimum price, the software stays up-to-date and aware of not crossing those prices while repricing.
Today, every established ecommerce store selling on Amazon uses this sales performance management software.
How does it exactly work?
The most common and important question is, how does this Amazon repricer software works and what does the process involve. Here’s a simple and crisp explanation of what happens.
There’s a price change on Amazon -> Amazon then communicates this to the repricer software -> The repricer software analyses and processes the data and calculates a new price -> Security checks are undertaken -> The software then sends the new price to Amazon -> Amazon’s system checks the new price against its pricing rules -> After the criteria matches, the price goes live on Amazon -> The cycle is repeated continuously.
There’s a price change on Amazon
The process of repricing is usually instant and takes place as soon as any one of the top 20 sellers of the respective item changes certain specifications on Amazon, like their shipping or active price, terms and conditions, offers and time of handling.
Amazon then communicates this price change to the repricer software
Post the change (done by anyone of the top selling 2 items), Amazon immediately sends a message to the repricing software with the details like shipment and prices of all the top 20 sellers.
The repricer software analyzes and processes the data and calculates a new price
The software receives and analyzes the data, processes the same as soon as possible as per the Amazon guidelines and allowance, which doesn’t take more than 5-15 minutes.
Security checks are undertaken
It will ensure that the new price which is being processed stays in between the extremes set – which is the maximum and minimum price limit.
Repricing software can help with retaining sales and increasing business by meeting the set safety standards.
The software then sends the new price to Amazon
After the new price is cross-verified and checked against all safety instructions, it’s uploaded on Amazon, for processing and listing to its marketplace. The new price is not yet live.
Amazon’s system checks the new price against its pricing rules
The new price received by Amazon is now queued to clear the Amazon’s error tests. Amazon has its own set of pricing criteria and if the seller has not set its minimum and maximum price limits, their products automatically falls under the Amazon pricing system. And if your new price seems to be too low or high as per the Amazon’s pricing error system, it will deactivate your product marking it as having pricing error.
It’s a good practice to set your own floor and ceiling prices, in order to avoid uncertainties.
After the criteria matches, the price goes live on Amazon
After it matches the seller’s set price or Amazon’s pricing criteria, the new price is then live on Amazon.
The cycle is repeated continuously
One of the reasons the repricing software is so useful, is because the process is repeated continuously by default, whenever there’s any item change amidst the top 20 sellers on Amazon. The repricing process doesn’t happen for products which are out of stock, flagged as fixed priced, set as not to reprice.
What’s the time-frame of this repricing process?
Amazon has a limit with respect to the number of uploads a third party app can send in every hour. Smaller file size uploads are processed faster compared to the larger ones.
Some software sends the repricing files to Amazon every 5-15 minutes, while others may limit to one every 30-60 minutes. Hence, a thorough research is vital before choosing the right and best Amazon repricing software for your business.
Using a repricer to boost your sales will help increasing your business as it makes the constant Amazon pricing war untroublesome and stress-free.
Visit us on www.vreprice.com and get yourself a free trial of one of the best Amazon Repricing Software.