Things change rapidly on Amazon thanks to the highly competitive environment, and a new report suggests sellers should not take a set it and forget it approach to selling there.
XSellco studied a sample of over 300 customers who use its Price Manager
tool to automate their pricing on Amazon for a 30-week period. The study found that sellers saw an immediate boost in average weekly sales, but also sustained a new level of business in the long run.
The report found the customers studied experienced a 145% increase in weekly sales over the 30-week period. It estimated the growth amounted to an average increase in revenue of $203,000 for each seller over the course of the period studied.
One of the more interesting findings was that sellers used more sophisticated repricing strategies over time, refining their approach and expanding them to more SKUs over time.
One of the first repricing strategies used by sellers includes Fulfillment method rules. XSellco CEO Victor Corcoran explained that this rule allows sellers to set their product to automatically reprice based on whether the competitor is using Fulfilment by Amazon (FBA) or is self-fulfilled (FBM).
"For example, as Amazon favours FBA sold items, an FBA seller may set their rule to reprice significantly above the competition when the rival is FBM, as they can be more expensive than FBM sellers and still win the Buy Box," he told us. "Conversely typically FBM sellers must undercut FBA sellers in price in order to win the Buy Box."
You can download the full report on the Xsellco.com website
, and stay tuned for our interview with Victor in the next issue of EcommerceBytes 411 where he reveals more and addresses where eBay is when it comes to dynamic pricing.
What do you think of repricing when it comes to your own listings on Amazon and eBay, when it comes to your competitors, and do you think eBay sellers will end up repricing to the same extent as on Amazon?