Dear ChannelAdvisor: Is a Repricing Tool Necessary to Compete on Amazon?

June 4, 2015

Marketplaces Luke Evans By Luke Evans

dear channeladvisor

As we host webinars, post blogs and interact on social media, we frequently receive questions from online retailers about how to best sell on Amazon. Some questions are specific and technical. Some are broad and strategy based. Over the next few months (or longer — it depends on how many questions we get!), we’ll be answering your Amazon questions each week right here on our blog.

Have an Amazon question you need answered by one of our marketplaces experts? Just email and check back each week to see if your question was chosen. 

I want my listings to better compete on price. Is a repricing tool necessary to accomplish this?


Price Advice


Dear Price Advice,

If you’re doing all the right things as a seller and your seller metrics are in tip-top shape, Amazon can be your source for millions of potential buyers. But to get the attention of those buyers, you need to price products competitively — depending on the amount of competition you have on and off Amazon.

Price is a primary factor in winning the Buy Box, so we believe some form of a repricer is needed to ensure that you remain competitive. A repricer tool will adjust your prices automatically, based on your goals, to keep you in line with your competitors. We recommend developing your repricing strategy so that you can be both competitive and profitable, and then sticking to that strategy. You could reprice on your own by reviewing prices frequently, but this won’t be scalable — in both man-hours and profitability — in the long run. The ChannelAdvisor Repricer with Pricewatch automatically adjusts your prices based on competitors’ price changes within the parameters you set. We recommend staying 2% above or below your competitors’ prices for the best results.

Many manufacturers have minimum advertised price (MAP) policies for their products. It’s important to understand these policies for all products to avoid violations. Simply review any agreements you have with the manufacturer of your products, and contact Amazon if you notice a pricing policy violation.


All the best,

Luke Evans

Manager, Marketplace Services