Repricing tactics for different types of stock
There’s an interesting post on the RepricerExpress blog sharing the strategies Amazon FBA seller Ryan uses when he reprices his stock. One of the best takeaways is that you don’t always have to have the lowest price and join the ‘race to the bottom’ to be successful
Set prices based upon other FBA sellers on the product detail pages, you don’t necessarily need to compete so hard with sellers that self fulfil.
Ryan sets his price 1.5% above the lowest FBA seller which results in good Buy Box rotation and margin instead of competing in a ‘race to the bottom’ and low margins.
With around 20% of Ryan’s stock he matches the current low FBA competition. However this price matching is reserved for slow selling lines and especially aged stock which he needs to shift before incurring Amazon FBA long term storage fees and to simply stop paying ongoing storage fees.
You don’t have to be the cheapest seller win a share of the Buy Box.
Treat price matching differently for your best selling lines and have different strategies for stock that’s sitting in Amazon incurring storage fees. If it sits there a year you’ll probably pay more in storage fees than what you’ll lose by discounting more heavily.
Try A/B testing pricing for your stock, using a Repricer you can tweak a price setting and see if it results in higher sales.
You can read Ryan’s full post on the RepricerExpress blog.