Amazon launch their own secret repricing tool

By Chris Dawson May 5, 2016 - 11:38 am

In a move which is sure to shake up the repricing industry, Amazon have launched Amazon Automate Pricing. A Tamebay reader sent us a link to a YouTube video posted by Amazon setting out how the Amazon repricer works.

You can automate pricing between a high a low point, price against the Amazon Buy Box price, set a percentage above or below your target and of course choose which products you wish to apply your repricing rules to.

If you turn repricing back off for a product then it will revert to the last price that you set.

There are a lot of repricing products on the market so it will be interesting to see how Amazon’s repricer stacks up against them. It would be natural to expect a repricer built into the Amazon platform would be the fastest and most responsive. However it may not have the sophisticated repricing rules built into other platforms such as repricing including (or excluding) postage costs or repricing against a specific competitor. Repricing is also a slightly different algorithm if you only want to compete with products in Fulfilment by Amazon (FBA), as Amazon Prime customers will automatically favour FBA products.

Another interesting wrinkle is that doubtless Amazon themselves will be using their own repricer.

Currently the repricer looks to be available to selected retailers only. We’ll be watching for a public launch and for it to become available on Amazon’s EU sites.

Would you consider using an Amazon repricer or would you prefer to stick to an external tool. As always it will probably come down to which makes you the most profit, which may well mean using a more sophisticated tool than Amazon’s own repricer.

  • James
    4 years ago

    Wouldn’t be surprised if Amazon use the data within the “min/max” options to further give their own sales a preferential biased over 3rd party sellers….pretending of course that Chinese walls exist.

    • james
      4 years ago

      I wouldnt be surpised if they use it to identify products realising the best margin, and head straight to the supplier.

  • Steve
    4 years ago

    Software provided to sellers to undercut other sellers what could possible go wrong?

    seller A sets his product to be 1p cheaper than the cheapest on Amazon
    and seller B sets his software to be 1p cheaper than the cheapest on Amazon
    and seller C sets his software to be 1p cheaper than anyone else on Amazon
    and repeat

    Should be good for buyers once going rate for the goods is down to cost price plus a penny

    • Andy
      4 years ago

      Couldn’t agree more with Steve. So many sellers on Amazon who don’t have a clue about how to use a re-pricer properly and also calculate how much profit they are actually making on some products. Only one winner here, and that will be the customer as they will be buying items at less than cost, in some instances, using some of my competitors logic.

  • 4 years ago

    I believe Amazon coming out with an official repricing product, might be one of the best or worst things that could happen, for a number of reasons.

    It could be beneficial, especially for sellers who do not have the skill / experience to enable a repricing software, and if Amazon decided to make it the ONLY licensed repricing software allowed for, they could effectively corner the market on repricing. This could mean bad things, but it could also mean an even playing field for everyone involved.

    Steve & Andy, yes repricing software can cause price wars, but that’s only if you have two repricing systems both setup to drop the price below $0.01 – $0.02 the lowest offer. If your smart, like my company, you will set your repricing system to automatically MATCH, not under cut, the buy box price. This will effectively jump up your list price up, when a seller runs out of inventory, to the next lowest listing offer. Therefor, you would be making more money off that sale.

    When two or more sellers have matched pricing, it comes down to who has better seller ratings (to see who might get the buy box more often), but overall the buy box will be shared and each seller will have they’re own chance to make money, without starting a price war.

    Make sense to you?

    I need to ponder about Amazon creating a repricing software a bit more, try to figure out their motives & methodology behind this move. I will keep up with additional comments, if anyone has anything else important to say.

    – Whitney Segura
    “Things will come to those who wait, but only things left behind by those who hustle.”

    • Steve
      4 years ago

      Matching your prices wont quite work if any other seller has their software set to under cut by $0.01 as soon as you match the other sellers will drop below yours

      If you then add a few more sellers selling the same thing and the prices will drop to rock bottom very quickly giving away most of the profit to get market share.

      Some sellers seem to sell at next to cost just so they can sell they think if the goods are cheaper they will sell more and make more.

      Unfortunately they do not seem to understand the number of item sold is not influenced by price only and if something is half price people wont just buy two

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