08 Nov How can Amazon’s automatic pricing settings help you?
- One of the latest innovations of the e-commerce giant is the ability to adjust prices automatically.
- With this new service, sellers increase the chances of winning the Buy Box and boost sales and visibility.
When a customer goes to buy a product on Amazon, what makes the difference between them buying yours or a competitor’s is the Buy Box, also known as a “featured offer”.
As we already explained here, this is awarded to those sellers who have a better sales ratio, ratings and, of course, prices. For this reason, if you don’t perform well on any of these features, chances are that customers won’t even see your offer.
All this meant that sellers were very aware of the prices of competitors every day to vary them according to the profit margin and thus be able to achieve the long-awaited sale.
But this is over. Thanks to Amazon’s new feature, you will be able to select two prices – one maximum and one minimum – on which the marketplace will oscillate to try to make your product always compete to win the featured offer.
How does it work?
The tool is very simple to use: simply choose the listings you want to register, set the minimum and maximum prices, which is called creating a “rule”; and let Amazon keep prices tight 24/7.
In this way, the prices of your products will automatically react to changes made by the competition, increasing your chances of winning and keeping the Buy Box.
This was a task that previously required one or more people to be aware throughout the day. Instead, you can now direct these resources, human and material, to other facets of your business and thus maximize profits.
What are the rules?
Auto-pricing rules adjust prices in response to certain situations, such as changes to the featured offer. But don’t worry, these changes will only be applied to those SKUs you’ve chosen, so you can keep track of the rest of your catalog.
In addition, you can stop the rules from working at any time, so you still have the power over your merchandise and over your profit margins.
Some examples of rules you can apply are:
- Featured Offer: Update the price of your product if your Buy Box profit percentage is low or if other sellers continually update theirs leaving you out.
- Competitive Price Matching: This takes care of updating the price so that you can remain eligible for the featured offer, ensuring that you are always competitive, which increases your chances of winning the Buy Box.
- From sales bases: aims to manage your inventory levels. We can use it both to price a new product appropriately and to liquidate excess stock. You can choose how many units you want to sell in a given period and this rule will readjust the price of the product once you have reached that goal.
This new Amazon feature offers you many interesting facilities to control your catalog, but the most interesting thing is that you can customize all this to your liking depending on the strategy you want to follow in your business.
It should be remembered that all this is extremely important because two of the main factors when it comes to obtaining more visibility within the platform are sales volume and reviews and ratings, so if you sell more products, and do things well, you will significantly improve the consideration of your brand.