The long-term impact of automated pricing on Amazon sales

Xsellco have undertaken some interesting research on the longer term impact of repricing on Amazon. Their analysis found that online sellers who automate pricing on Amazon see an increase of 145% in weekly sales over a 30-week period.

In a report, they outline four stages of growth under automated pricing – Immediate Impact, Accelerated Sales, Sustained Growth and Longevity. There’s no real surprise that you see an immediate sales growth when you start repricing, what’s much more interesting is the longer term effects.

automated-pricing-stages-of-growth

58% of the repricing rules set by sellers in the study focused on the fulfillment method – with the prevalence of Fulfilment by Amazon this is to be expected. he other 42 percent of rules used included: Buy Box ownership; Free shipping; A competitor’s location; Stock levels; and If there are no competitors.

What the report doesn’t touch on is any increases in sales that may be attributable to sales velocity, feedback, product reviews and other metrics Amazon uses to determine who wins the buy box.

The research is based on the first 30 weeks sales growth of 368 retailers who started using XSellco Price Manager in 2015. You can download the full report from the Xsellco website.