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Why top retailers choose Teikametrics for Professional Amazon Repricing

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The Amazon Repricing Problem

Automation is the use of technology to optimize productivity in the delivery of services or products. If correctly executed, automation can offer a business a distinct competitive advantage but if poorly executed, it can damage a businesses ability to output a consistent level of service. In the case of Amazon repricing technology, precise execution is key.

Amazon repricing software automates a process that would be virtually impossible to execute with human labor – but are all Amazon repricing tools offering the same level of execution?

In 2003, I was invited by Amazon to be one of the first retailers to list sporting goods as a third-party seller on their marketplace platform. As our Amazon sales grew steadily to over several million dollars per year, our team used many third-party repricing tools to attempt to optimize and improve our sales. Naturally, we Googled the terms ‘Amazon Repricing Tools’ and ‘Amazon Repricing Software’ and tested all of the solutions available.

What our team noticed was that even repricing solutions provided by ‘leading companies’ charging significant fees did not always reprice our products correctly. Our Amazon repricing data frequently showed missing data, delayed repricing runs, missing/incorrect shipping prices, or in some cases, our products were even changed to the wrong prices.

Differences in Amazon Repricing Technology

After our e-commerce business was acquired, we decided to launch Teikametrics to address the problem to help other merchants. With an investment we set out to build a software team to execute our mission of providing the best Amazon repricing software.

Why aren’t all Amazon repricing tools able to provide accurate results?

The simple answer is that is the task of consistently capturing data from Amazon is not trivial and presents a significant challenge for automated software. Amazon repricing software can only be as accurate as the data it is able to capture and here lies the issue. Unfortunately, Amazon does not make the task of sampling pricing information, competitive merchant’s prices, and other inputs required to reprice accurately, an easy task. This has been the source of frustration for many third-party tools including those providing Amazon repricing services.

Amazon repricing services uses different techniques to capture pricing information and is a reason why performance can vary between providers. The techniques used to sample Amazon data include:

Through extensive research, our development team learned techniques using Screen-Scraping have serious limitations and importantly is prohibited by Amazon’s strict terms of service. We were surprised to learn that some of the largest providers of third-party seller tools were relying on data from Screen-Scraping to capture prices. The inaccuracy issues that we had experienced as a seller and the inconsistencies between repricing services made complete sense after learning that Screen-Scraping is used by a large number of Amazon repricing services.

Screen-Scraping, like any automated process, experiences an error-rate which in a high volume retail scenario can have critical negative consequences. The Screen-Scraping process relies on the ability of the process to capture data in a fashion that mimics thousands of individual web browser requests. If for some reason a request fails and pricing data is not correctly captured, there is no way for the repricing tool to be able make any changes.

In recent months our research and development team has identified changes by Amazon that will render all Screen-Scraping techniques obsolete. If you’re a seller using a Screen-Scraping based Amazon repricing techniques you are almost certainly experiencing major issues since these changes have been put in place.

Amazon’s own API, called Amazon MWS, also has limitations. Due to the size of Amazon’s vast database which handles petabytes of data across the globe, services querying product data using the Amazon API also experience an error rate. What do these error rates mean for Amazon repricing services? In short, if there is no process or error-correction detection in place to handle data sampling errors they will not reprice products correctly. For high volume sellers, these errors and product miss-pricing adjustments can result in thousands of dollars of lost revenue.

Teikametrics’ Data-Driven Approach

Our goal at Teikametrics is to provide the best Amazon repricing service and our development team has put in thousands of hours to test, re-test, build, and release multiple iterations of our software. Through this data-driven process, clients using Teikametrics are able to experience an Amazon repricing service with a level of accuracy that is superior in terms of accuracy and performance to other solutions available.

Our Amazon repricing software dynamically identifies Amazon API inconsistencies, reacts, and adjusts to optimize the adjustment of all products. In addition, we’ve developed proprietary adjustment techniques to dynamically search for missing data to provide the most complete data set to execute price updates.

The resulting performance is why some of the largest retailers in the Amazon marketplace choose Teikametrics technology to accurately manage and reprice their products.

If you have any questions regarding Amazon repricing accuracy or if you would like our software team to review your current repricing solution for errors, please get in touch with us and a Teikametrics Amazon expert will be happy to help you through the process and provide a risk-free demo of our solution.

Understanding Different Types of Repricing Software

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Online merchants have been using repricing software for the last couple years to price and sell their products faster. No matter what marketplace you sell on, merchants have been using different types of repricing software. Depending on the needs and requirements you as the seller have, there are a variety of different types of repricing software available to merchants. Not all repricing software is equal, and many are created with special features and functions in mind. To find the right software for you, we take a look into 3 different types of repricing software and how each one functions to better help you.

Amazon Lowest Price

Although this isn’t a software service you purchase, Amazon’s lowest price essentially gives you a repricing guideline. When you first list an item on Amazon they’ll notify you of the current price that item is being listed at. You can either charge more or less. Most sellers undercut this price by a few cents in hopes of attracting buyers to their product. However, Amazon’s lowest price will not monitor prices and alert you when your competitor has lowered their price. This is the basic reprising functionality Amazon offers for sellers.

Pros: It’s free.

Cons: It doesn’t offer nearly anything comparable that other RePricing software and isn’t automated. Essentially, you are required to manually monitor and reprice every listing you have, no matter how many items you list.

Automatic

Automatic repricing is like the grandparents of auto-pricing– It’s been around forever! This very simple and helpful tool enables users to reprice their listings automatically without ever touching their account. Set it and forget it. Although you run the risk of driving your profits straight into the ground for the sake of a purchase, you do, however, gain valuable customer feedback and ratings for your storefront. If properly used, automatic repricing can be a very valuable tool.

Pros: The advantages of using automatic repricing is the buy box. With automatic repricing you have a faster chance of winning the buy box because this software will lower your listing price more.

Cons: The only drawback of using automatic repricing software is entering your product into a price war. What’s a price war you ask? Basically, it’s where every seller listing that product under cuts their price to beat out their competition. The conclusion to price wars? You lose money.

Intelligent

The basis of intelligent repricing is easy— Keep prices low enough to win the buy box, but high enough to gain a profit.  Intelligent repricing has become the go-to software of late because it not only automatically extracts your competitor’s pricing, but it puts you in a position to keep your margins. It differs from automatic repricing because it doesn’t just automatically lower every time your competitor does, but instead lower the price just enoughto earn you a profit, while keeping you in the running for the buy box. Intelligent repricing is using certain pricing strategies to win and retain the Amazon BuyBox at the highest possible price.

Pros: The biggest plus to using Intelligent repricing is keeping profits high, while still competing for the lowest price to win the sale.

Cons: The biggest drawback to this service depends on the provider, as most intelligent repricing software companies charge a profit percentage rather than a monthly fee. Sure, you won the sale but your profit is going right back to the provider.

Is your pricing strategy costing you?

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The Guys over at WisePricer have broken down three types of pricing strategies that could be perfect for your online business. Not sure what they could be? Read the article and find out!

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