For a company that sells online, to have price policies can lead to a rapid increase of the incomes. This can be applied both for the e-commerce and to marketplaces such as Amazon and eBay.
If you own a company that develops its activity in online selling, it can be useful to update the price of the items and services you offer and be competitive. You have to be updated on what are the new trends and be prepared for unexpected market changes.
For this reason, the activity that monitors the tendency of the market and to update constantly the price of an online shopping is called repricing. The application of dynamic prices can be complex and boring if done manually. However, this activity can be done without the help of informatics if the company is small. In case of big quantities of products, you will need a software as Instant Repricing, the one created by eDock.
To sum up, the repricing can set one of these two objectives:
There is also a third objective that corresponds to the fusion of the other two.
When you talk about repricing for eBay and Amazon it is essential to refer to competitors. But what does competitor mean? Who can be a possible competitor on eBay/Amazon? Your competitors are the ones that aim at pinching your market shares. If I write on eBay, e.g. “iPhone cover” I obtain a list of items. These are potential competitors. Within the first ten results you have the top competitors - from smartphone the first five. Amazon have also the concept of buy box that produces even more evident effects on competition.
The good and the bad (depending on the point of view) is that this competition is a dynamic challenge (there are always new seller, other seller sometimes come out because they finished that item). The software used for repricing allows you to participate actively at this challenge.
The innovative eDock software can manage the entire repricing strategy on the bigger marketplaces like Amazon or eBay. All the steps, from planification to the realization, are entirely made by the system. You just have to see your incomes grow.
If your business is present on Amazon, the software will work to obtain the
Buy Box. If your business is operative on eBay, the aim will be that of find your listings at the first places among the other listings. The common aim is to give visibility to your business and to your products because the market is more and more competitive every day.
Let’s see what are the concrete advantages you will test when you’ll start using the software of Instant Repricing of eDock:
– Rapidity of analysis and of the strategy’s update according to predefined methods;
– Increase of the incomes and of the fringe of your selling;
– Manage the software easily;
– The prices are updated and published automatically and constantly.
If you have never tried a repricing system but you’d like to, you can try the demo of the eDock software and configure Instant Repricing.
The price policies applied in a repricing planification are various. Using both Amazon and eBay, it is important to make the potential client feel that your prices are the most competitive.
Among the strategies used, one of the most used is the policies of attractive prices: e.g. 9 as a decimal cipher in prices as 9,99 or 29,99. In this case the customer is attracted by the price and s/he feels that this price is lower that the competitor - or lower than the “real” amount. This policy is common in non luxury products; on the other hand, for luxury products is recommended to use integer prices.The online seller that applied this strategy succeeded in increase their incomes. Also apply discount for complementary product can be a powerful strategy. In this case, it is important to keep the amount of the two items lower than the single price. This method can be useful sometimes, above all when you have to empty your stock.
Regardless of what your strategies are, it is unuseful to watch your competitor increase. You can establish by yourself how many the price can fluctuate. You can also decide the limits of your repricing according to the price of your competitor.
it is clear that it’s essential to supervise the activities and the price policies of the competitors. You can choose which one exclude (e.g. small businesses) and which one to focus on. The choice will depend on what are your aims and the size of your business.
In every moment you can supervise from the control panel of the software the evolution of your sales and, according to these data, decide to update your price strategy.
The dynamic prices policy is one of the newest and most useful strategy. You know well how the competitivity is high on Amazon and eBay. Every day new competitor join the international market and you have to prepare yourself to this challenge. It is important that your prices are updated and competitive in relation to your competitor’s prices. The eDock software con do this activity for you. Before, it is useful to carry on a market analysis and a data collection, in order to update correctly your prices. Remember that prices are still the most important part of your business, you cannot pay less attention to them. Instead, keep the prices updated and competitive.