Feedvisor algorithmic self-learning Amazon repricing
Repricing is technology which allows you to automatically adjust your prices based on your competition. Sometimes you may wish to be the cheapest on Amazon for a particular product but still have the highest price possible to win the deal. A common complaint is that repricing wars mean that you’re cutting your margins and no one wins.
Feedvisor aims to change how repricing works, they appreciate that you want to win orders but without cutting your margins to the bone. Rather than simply looking at which of your competitors has the lowest price, Feedvisor uses algorithmic repricing aiming to maximise your sales using many more attributes than price alone.
Today Feedvisor launch verion 2.0 of their Algo-Pricing platform. This release introduces a new artificial intelligence that will literally change the way hundreds of millions of products will be priced online. This is achieved by combining Big Data with a closed-loop, learning algorithm that constantly improves itself that Feedvisor say has never been seen in the industry before.
What do you actually want from repricing?
If you ask many sellers what they want from repricing the answer is to win orders at an acceptable margin. That’s actually different from winning orders by having a slightly lower price than all of your competitors.
Feedvisor aim to achieve this by taking into account attributes such as your feedback, seller status, order defect rate, speed of shipping and those of your competitors. They aim to help you win the Amazon Buy Box, not to ensure that you have the lowest price.
Once you’ve won the Buy Box, Feedvisor aim to keep you there, still adjusting your price to keep your profits as high as possible. For instance if you have the Buy Box there’s no need for you to be the lowest price on Amazon if part of the reason you have the Buy Box is based on your seller metrics. Feedvisor won’t needlessly lower your price and in fact will edge it higher if you keep the Buy Box and are winning sales.
Feedvisor will also spot if your competitors are using repricing, deduce what rules your competitors are using and use this to your advantage. You’ll no longer get involved in a race to the bottom pricing war… unless that’s what you want.
Is Feedvisor for you?
Feedvisor say that they monitor and adjust millions of prices online every hour, allowing their clients to stay competitive, maximise profits, and offer the best value to their customers. Their unique proposition is that they reprice but not based purely on price. Feedvisor understands how the Amazon BuyBox works, and is able to reprice your products based on maximum profit, optimum sales, or any other business goals.
Feedvisor uses a closed loop machine learning system to constantly assess its own performance and learn from its successes and mistakes. It evaluates every price change to see if the effect was positive or negative, and constantly improves itself to find the perfect pricing sweet spot for your product.
If you want to win more sales on Amazon then take a look at the Feedvisor website for more information and see how it could benefit your business.
Something like this on ebay would be awesome.
If you are talking about something where you sign up, perform virtually no setup, and it monitors your competitors and uses stock market-like algorithms to set your prices you probably won’t be seeing that on eBay. If you are just talking about a repricer that works on eBay those exist.
On Amazon all products are cataloged so you know who your competitors are with no input required. On eBay a small portion of the site is cataloged and a lot of it quite poorly. So you can either restrict yourself to the catalog or you need it to accept keywords to create a specific search to identify your competitors (this actually does work in most cases but requires some of your time).
The next problem is that Amazon has a Buy Box which is determined by many factors which I’m pretty sure nobody including Feedvisor knows. But you can deduce some of the factors using AI techniques and feeding every bit of data you can find into your algorithm to figure some of them out. I’m sure that is what they did or something similar. On eBay you have a Value Box which is simply the cheapest listing from a TRS Plus seller. That’s it, you don’t need AI or a complex algorithm to place you in the box. But it is even more complicated than that because nobody can find the product pages on eBay anyway. Instead you deal with best match in normal search. Best match is mostly determined by sales history which is not a signal eBay provides. Feedback matters a little, TRS matters a little, and free shipping matters. Price matters too but eBay hasn’t disclosed how much. eBay will say someone is TRS when they don’t qualify for TRS Plus so you can’t even trust that. There are also literally hundreds of other factors that eBay has never disclosed that you probably can’t even see. I don’t think your change in best match rank is immediate either when you change your price so who knows what the impact of your price change was. The end result is a lot of noise which makes for bad pricing.
That’s not to say you can’t intelligently set a price on eBay without just undercutting the competition by $0.01. I just don’t think you are going to find something as sophisticated as what Feedvisor claims to have developed on eBay.
All sounds very clever… unless of course you AND your competitor are both using it!! :D
I’m not so sure.
Feedvisor will also spot if your competitors are using repricing, deduce what rules your competitors are using and use this to your advantage.
Algorithmic repricing is all about maximizing your returns. Presumably if the above is true then Feedvisor can detect another Feedvisor user (or it could simply cheat and just know). Game theory dictates that the sellers form a cooperative cartel that fixes the prices trading sales until one member defects. Maybe that’s how it works?
On the otherhand if they are up against a repricer that just undercuts the competition while simultaneously ensuring the buy box (I’m in that industry on eBay) I suspect it would just fall apart. Basically Feedvisor sets the optimal price and then the other repricer just sets the price to the optimal price without doing all the hard work. I’m sure they’ll claim otherwise but at the end of the day you are either in the buy box or you aren’t so the software can really only do one of two things, out compete or surrender. Sometimes the latter is better depending on stock levels but you can’t really trust what you customer is claiming they have in stock.
Sounds really good if you want to be one of the idiots who sell things on Ebay for about 2p of profit per item and have 100000 auctions
Get a grip !!!
Not always. That can happen if everyone acts in their own best interests (something you can probably expect). But in domains where repricing is not so common I’ve seen plenty of cases where repricing improves prices. On eBay I had something very similar to what Feedvisor does but much simpler (no big data but some basic machine learning). Someone told me he had to disable the software because, while he was making more money than he could have ever imagined on the products, it actually determined a price higher than the retail price and he wasn’t allowed to sell above that. That is not the typical case but it happens.
Repricing software can really help drive profits on Amazon as long as you fully understand your margins and costs across your business.
If set up properly, your repricing software should ensure you are not a busy fool. Sometimes you’ll want your competitors to take a hit and sell at the cheapest price – but be ready to jump in when they run out of stock.
Sellers looking for a repricer solution for Amazon and Rakuten Play bundled with their multi-channel retail software should take a look at SellerExpress – http://www.sellerexpress.com/
There has been many occasion when I have researched the price of a product only to find one or more competitors selling the same product cheaper and I have priced above them, because although cheaper their stock levels were lower. Sometimes you are just as well to let a seller sell out of a product rather than competing on price.
This strategy is perhaps more relevant at Christmas, but taking into consideration the volume of sales over the seasonal sales period, do you want to commit to repricing software 24/7?
For example lets say you have 50 of Product A and your nearest competitor has only 2 or 3 left (I know that restocking can change things), and you automate your pricing to sell below your competitor.
You might well sell 50 Product A quicker than your competitor, but high demand results in your competitor selling their 2 or 3 products shortly after you have sold out. Faster turnover, but less profit per product.
Do not forget that increased turnover does not automatically mean increased profit.
I contacted these guys for a quote and they never got back to me.
What I do with my current repricer is just price it to 2p dearer than the current cheapest. That way if there is only 2 of you the price will increase rather than driving the price down. 99% of sellers set it to reprice 1p cheaper so if mine goes 2p dearer, the competitor will then rise in price by 1p so that it is 1p cheaper than mine. Then mine will increase 1p to be 2p dearer again, and then the competitor will rise 1p again, and the process repeats itself. It works much better than me being 1p cheaper than the competition.