July 5, 2023
Repricing software is revolutionizing the pricing solutions industry, empowering businesses to automate pricing strategies, make real-time adjustments, and maximize profits. Discover how this game-changing tool helps businesses stay ahead of the competition, win the buy box, and optimize profit margins.
In today's competitive business landscape, staying ahead of the competition is crucial for success. This holds especially true in the pricing solutions industry, where profit margins and sales velocity play a vital role.
One game-changing tool that has revolutionized the industry is repricing software. Repricing software empowers eCommerce businesses (and not just Amazon sellers!), to automate their repricing strategies and adjust prices based on multiple factors in real time. In this article, we will explore the benefits of repricing software and how it can help you maximize profits and gain a competitive edge in the market.
Repricing software is a powerful tool designed to help businesses adjust their product prices dynamically. It eliminates the need for manual repricing, saving you time and enabling you to focus on other critical aspects of your business. Smart repricing software allows sellers to automatically adjust their prices based on various factors, including competition, demand, market trends, and desired profit margins. With real-time data and algorithmic pricing capabilities, repricing software ensures that your prices are always competitive, increasing your chances of converting a website visitor into a customer.
Repricing software analyses market conditions (like other players’ stock availability), competitor prices, sales velocity and some other factors we will discuss below to optimize your pricing strategy. By automatically adjusting prices based on these factors, you can maximize your profit margins while remaining competitive.
Manual repricing is time-consuming and prone to errors. Repricing software eliminates the need for manual intervention by automating the repricing process. This frees up your time to focus on other critical business tasks. By using automated reprices you can benefit the most. However, even if you do it manually you can see the growth in revenue in less than 3months. For example, just recently we onboarded a big sport supplies retailer. pricing managers were shocked when we showed them market intelligence data. They did not realize that they are selling 15% of their goods 28% below the market average! And 16% of the goods 123% above the market average! They used the strategy many companies still use while pricing their goods: take costs and add a desired margin. But hey, it’s 2023! There’s much more to pricing than that. Adjusting your prices based on the market data is very important. Even if you still prefer to do it manually — better than not to do it at all.
Repricing software constantly monitors market fluctuations and adjusts prices in real time. This ensures that you always have up-to-date and competitive prices, keeping you ahead of the competition. Here’s a case study on how a multi-million $ German DIY retailer Kömpf used repricing and did it — and improved their profit margin by 5% in 12 months.
Select a repricing software that suits your business needs. For example, if you sell solely on Amazon, you don’t need anything fancy— native Amazon reprice will work for you. It get trickier when you don’t sell on Amazon but want to compete against companies who do. In this case you will need repricing software that will allow you to track prices of Amazon sellers without creating an actual account there.
The same applies to other marketplaces: eBay, Idealo, Asos, on Buy. If you don’t sell there but compete with companies that do you have to look for a solution that would allow you to track any marketplace, any platform, any website without creating numerous accounts and actually uploading your items to make accurate matches. You need a solution like Aimondo. At Aimondo, we help companies track their competitors everywhere, all over EU and UK, provide data from all available marketplaces and platforms.
Also, it makes sense to think about the quality of data. If you sell a very limited number of goods, you might not be concerned about the quality so much — you can always double check manually if the software compared you against proper competitors and proper products based on GTIN/EAN match. But if you have hundreds of items manual double-checking becomes an overwhelming task, doesn’t it? Therefore, you have to make sure you’re getting 100% clean data and 100% accurate matches. How can you be sure? Look for a provider and software that does matches based on several data points, not just GTIN/EAN. For example, we, at Aimondo, do matches based on GTIN/EAN plus complex semantic analysis (brand name, model name, the description, the colour, etc.) We want to make sure our customers compare their products against right competitors and correct products, and not fall a victim of human-related errors when some employee have assigned a GTIN from a flower pot to MacBook Air.
Define your repricing strategy based on what you’d like to achieve: bigger market share (therefore, you’ll go for more aggressive pricing strategy), higher margin, more sales, faster stock exit, optimised stock exit, etc. At Aimondo, we have templates and Pricing Strategy Wizards that allow our customers build their own custom repricing strategies in a blink of an eye.
Continuously monitor your repricing software's performance and make necessary adjustments. Analyse the impact of different repricing strategies on your sales, profit margins and sales velocity.
In the competitive pricing solutions industry, repricing software has emerged as a game-changer. By automating repricing strategies, adjusting prices in real time, and maximizing profits, businesses can gain a significant edge over their competitors. Investing in a reputable repricing software tool like Aimondo repricing software not only saves you time but also positions your business for growth and success.
Step-by-step guide on maintaining high profitability in retail.