The pricing wars on marketplaces like Amazon can be brutal.
You want to win the Buy Box, of course, since 82% of sales are driven through the top position. But you also don’t want to erode your entire profit margin in a race to the bottom with your competitors.
Meanwhile, you understand that pricing is just one part of a successful, dynamic Amazon strategy, and it’s not sustainable to manually track every pricing change daily across your entire catalog.
You need a powerful repricing tool that automates hundreds of price changes for you each day while also providing insights into your weekly sales, your competitors’ prices, where you could win more Buy Box positions and opportunities for increased profit.
A Beauty Brand Gets a Pricing Makeover
In Q2 of this year, a well-known beauty company leveraged ChannelAdvisor’s repricing technology to increase their percentage of Amazon Buy Box wins for their various owned brands and unowned brands.
Their ultimate goal was higher revenue at acceptable profit margins, so they used the algorithmic repricing feature to manage pricing across the portfolio of products. They were able to set price minimums and maximums for each of their products — taking the different product shipping costs into account and ensuring that these parameters complied with their minimum advertised price (MAP) policies on the owned products.
The Pricing Console then let them see where they were losing the Buy Box at their minimum price (i.e., where they should consider lowering the minimum price) and where they were winning the Buy Box at their maximum price (i.e., where they could potentially increase the price), as well as the products where they had no competition at all.
But that was just the start. By leveraging the insights in the Pricing Console, they were also able to gain more clarity in other aspects of their business. For example, they noticed competitors undercutting them on price with their own brands, so they joined Amazon’s Brand Registry to proactively monitor and identify potential pricing and brand violations.
Then they looked at areas where they could cut operational costs to gain a competitive edge on pricing. New efficiencies were created in their returns process which, in turn, gave them more profit margin to put back into the pricing strategy.
Ultimately, the new repricing strategy became a central component of their overall Amazon efforts. And after just a couple of months, this health and beauty brand saw a:
- 12% increase in Buy Box wins for their unowned brands
- 35% increase in Buy Box wins for their owned brands
- 35% increase in Q2 GMV
- 18% increase in GMV for the fiscal year 2019 to date
Repricing on Amazon Just Got Easier
ChannelAdvisor’s sophisticated repricing solution — including algorithmic repricing, velocity repricing and rules-based repricing — is available to customers of the ChannelAdvisor platform, helping these brands and retailers win more sales, increase revenue and maximize profits.
But because we wanted to give even more sellers access to these repricing tools, we recently launched a new, standalone solution: ChannelAdvisor Elevate for Amazon. Elevate harnesses all the power of our repricing technology in a single, easy-to-use, interface.
And the best part? Amazon US sellers can explore the solution free for 15 days, which includes an Amazon account analysis and pricing opportunity analysis. The self-service onboarding process allows you to get started quickly — within minutes. In addition to the ChannelAdvisor registration page, Elevate is available via the Amazon Appstore.
Whether you want to move stale inventory using velocity repricing, capitalize on profit margin with algorithmic repricing, or control pricing across your product inventory on Amazon, ChannelAdvisor Elevate offers a simple interface to help you accomplish your goals in just a few simple clicks.
Should you decide to continue at the end of the trial, the system will prompt you for payment information. The commitment is on a month-to-month basis, and you can cancel at any time.
Sign up today for your free trial and learn what it can do for you.