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Hello, Amazon sellers! If you've ever set your price on a product, only to log on the next day and find it's lowered spontaneously... welcome to Amazon!
All it takes is one seller listing your products for less than you to lose your Buy Box, and drop your price across the platform. Next thing you know, Target is calling to complain that they're losing sales on the shipment you sent last month because everyone is buying on Amazon instead.
How does this happen? The Amazon pricing algorithm.
How do you make it stop? Keep reading. In this article, we lay down seven steps to stabilize your pricing, keep your retailers happy, and stop losing sales to shady resellers who are offering them for pennies on the dollar.
Stable pricing not only sends the signal to customers that you're on top of your business, it also tells your retailers that you're a brand to prioritize.
So, ready to dive in? Grab your coffee, and let's get started!
Seven Steps to Lock Your Pricing on Amazon
Step 1: Identify the Cause
Time Needed: 5 Minutes
First, determine why Amazon is altering your prices. There are two main reasons:
A competitor or other seller is offering your same product or ASIN at a lower price.
The settings in Amazon's built-in repricing tool are triggering automatic price drops.
To fix it, you'll want to first opt out of Amazon's automated price matching, which is designed to show the lowest price possible to its customers.
How to opt out of Amazon's automated price matching:
Log into your Amazon Seller Central account: Open your web browser, navigate to the Amazon Seller Central website, and log in with your credentials.
Navigate to Pricing Settings: Once logged in, look for the 'Pricing' tab or section in your Seller Central dashboard. This is where Amazon's pricing features are managed.
Opt Out of Automated Price Matching:
In the Pricing section, find the option for Amazon's automated price matching feature. It might be labeled something like 'Automate Pricing' or 'Price Match'.
Select this feature to view more details.
Look for an option to opt-out or disable this feature. This might be a checkbox or a toggle switch.
Confirm the changes to ensure that the automated price matching is turned off.
Review Your Repricing Tools:
If you're using third-party repricing tools, log into each tool's respective platform or access them through their integration in Amazon Seller Central.
Navigate to the settings or configuration section of these tools.
Update Repricing Tool Settings:
In each tool's settings, review the current repricing strategies and rules you have in place.
Adjust these settings to align with your new pricing strategy. This might involve setting new minimum and maximum price thresholds, changing the frequency of price updates, or modifying the conditions under which prices change.
Make sure to save or confirm any changes you make to the repricing rules.
Monitor the Changes:
After making these adjustments, monitor your product listings on Amazon to ensure that the new pricing strategy is in effect.
Pay attention to the performance of your products in terms of sales and competitiveness in the market.
Adjust as Needed: Be prepared to revisit and adjust your pricing strategy and repricing tool settings as market conditions change or as you gather more data on the effectiveness of your new pricing approach.
Remember, each repricing tool may have its own set of features and settings, so the exact steps may vary. Always refer to the user guide or help resources of the specific tool you are using for detailed instructions.
Step 2: Research Competitors' Prices
Time Needed: 3 Minutes
Scan competitor pricing using tools like Keepa or CamelCamelCamel. If you find you're not being undercut, then it's Amazon's algorithm you have to worry about, which is designed to offer the lowest price possible to consumers.
To scan competitor pricing and assess if Amazon's algorithm is undercutting your prices, follow these steps:
Use Pricing Tools:
Access a pricing analysis tool like Keepa or CamelCamelCamel.
Enter the ASIN (Amazon Standard Identification Number) or product name of your item.
Analyze Competitor Pricing:
Review the historical pricing data provided by the tool for your product and similar products from competitors.
Compare your current pricing with the competitor's pricing history.
Determine Pricing Strategy:
If your pricing is consistently higher than competitors, Amazon's algorithm might be undercutting you to match lower prices.
If your pricing is similar or lower, it's less likely that Amazon's algorithm is the issue.
Step 3: Evaluate Your Costs
Time Needed: 1 Minute
Quickly revisit your cost structure, taking into account manufacturing, Amazon fees, and shipping and handling. Ensure your current price point can absorb these costs and still yield a profit.
Gather Cost Data: Quickly pull up your latest cost data for manufacturing, Amazon fees, shipping, and handling.
Review Costs: Scan through these costs to ensure they are current and accurate.
Compare to Price Point: Quickly compare these total costs to your current selling price on Amazon.
Assess Profitability: Confirm that the selling price covers all costs and still allows for a profit.
This rapid evaluation gives you a high-level view to ensure your pricing is still profitable.
Step 4: Set a Minimum Advertised Price (MAP)
Time Needed: 2 Minutes
By setting up a MAP policy in Seller Central, you create a buffer against Amazon's repricing algorithm, helping you maintain your brand value and market position.
How to set a Minimum Advertised Price (MAP) in Amazon Seller Central:
Log Into Seller Central: Access your Amazon Seller Central account.
Navigate to Pricing Settings: Find the section for pricing or MAP policy settings.
Set MAP Policy: Enter your desired MAP value for each product, ensuring it aligns with your brand value and market position.
Save Changes: Confirm and save your MAP settings.
This process creates a price buffer against Amazon's repricing algorithm.
Step 5: Utilize Dynamic Pricing Tools
Time Needed: 2 Minutes
Use specialized tools like RepricerExpress to adjust your prices based on predefined rules and real-time market conditions, allowing you to remain competitive yet profitable.
Select a Dynamic Pricing Tool: Choose a tool like RepricerExpress.
Set Up an Account: Quickly sign up or log in to your account on the tool's platform.
Define Pricing Rules: Input your pricing rules based on your desired profit margins and market conditions.
Enable Dynamic Pricing: Activate the tool to start automatically adjusting your prices on Amazon.
This process helps you remain competitive and profitable by adjusting prices in real-time.
Step 6: Create Promotions and Bundles
Time Needed: 1 Minute
Craft time-sensitive promotions or bundle deals to boost the perceived value of your products without actually affecting your base price.
To create promotions and bundles on Amazon, follow these steps:
Access Seller Central: Log in to your Amazon Seller Central account.
Navigate to Promotions: Go to the 'Advertising' tab and select 'Promotions.'
Create a Promotion or Bundle:
Choose the type of promotion (e.g., percentage off, buy one get one, etc.) or bundle deal.
Set the terms, including time limits and product combinations.
Activate Promotion: Review and activate your promotion or bundle.
This quick process helps boost product appeal without altering the base price.
Step 7: Monitor and Adapt
Time Needed: 1 Minute
Keep a vigilant eye on your pricing and sales metrics, adjusting your strategy as needed to remain competitive and profitable in the ever-changing Amazon landscape.
How to monitor and adapt your Amazon strategy:
Access Seller Central: Log into your Amazon Seller Central account.
Check Pricing and Sales Metrics: Quickly review your current pricing, sales data, and any relevant metrics.
Make Adjustments: Based on this data, make any necessary quick adjustments to your pricing or sales strategies.
This process helps you stay competitive and profitable on Amazon by responding to market changes.
There you have it—your 5-minute, 7-step guide to reclaiming control over your pricing on Amazon. Now you're equipped to protect both your profits and your brand against the whims of Amazon's repricing algorithm.
If you have too many ASINs and too little time, staying on top of your pricing (and the resellers undermining it) can feel like a full time job. Luckily, our Amazon experts do all that for free.
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