How can you be more competitive? Increase sales? Optimize margins and boost profits? These are questions every business has—but that doesn’t mean there are very many easy answers.
One area you can focus on to address the above concerns is pricing. Specifically, setting the right price at the right time. For many, this is achieved through repricing. But what is repricing? And what should you look for in the best repricing software for your needs?
Let’s dig into these questions and more.
What is Repricing Software?
Repricing is used by eCommerce sellers to raise or lower prices on select SKUs based on a set of rules or conditions. Repricing software computes suggested SKU prices based on your business requirements, directly integrating with marketplaces and webstores to automatically reprice.
When used effectively, repricing software helps you remain competitive online, where marketplace sellers are often changing prices every few minutes or even seconds. It can also increase sales and margins by setting the best price for that moment—or even buyer—but we’re getting ahead of ourselves.
Repricing software computes suggested SKU prices based on your business requirements, directly integrating with marketplaces and webstores to automatically reprice.
How Does Repricing Software Work?
Not all repricers are created equal. Some are basic, letting you set only a few rules on a few SKUs across a limited number of marketplaces. Others are much more advanced, more akin to dynamic pricing or price optimization. Here, you can manage hundreds of thousands of SKUs across many marketplaces, repricing based on multiple rules or algorithms that factor in sales data, demand, and other market conditions.
In general, though, repricing software will:
- Integrate with your desired marketplace(s) so you can reprice where your products are sold, naturally.
- Allow for multiple inputs, such as SKU, minimum price, and maximum price.
- Let you set rules that fit your pricing strategies.
- Automatically reprice SKUs on a regular cadence.
So then, what sets the best repricing software apart from the rest? Here’s what you should look for.
What to Look for in Repricing Software
Repricing needs to work for your business. In most cases, a one-size-fits-all approach won’t work here, as you have unique needs, products, and marketplaces. To find the right repricer for you, make sure it meets the following conditions.
Software Works on the Right Marketplace or Store
The first, and perhaps most important consideration, is whether or not the repricing software integrates with the marketplace or store where you sell. For example, many businesses are Amazon sellers and need a tool that works great with that very-important webstore. Other popular integrations include eBay, Magento, BigCommerce, Shopify, and Channel Advisor. The bottom line is that whatever repricing software you choose, it has to work where you need it to.
It Can Reprice All Your SKUs
Another massively important feature of any repricer is whether it can actually, you know, reprice all your SKUs. Some tools have limits on the number of products they can handle, while other vendors might cap SKUs based on what level of access you purchase. Either way, you need software that fits your needs and can reprice your entire catalog, not just a select few.
You Can Set Min and Max Prices
It might seem obvious, but this isn’t a feature you want to overlook—your chosen repricing software must let you set minimum and maximum prices. This prevents the automation from dropping your prices too low on a certain SKU, potentially driving you into a price war, eating into your margins, or eroding your price position. On the flip side, too-high prices can have a similar effect, plus the added bonus of decreasing sales. Setting these price bounds gives you confidence that any repricer rules you create will operate within healthy margins.
Repricing Happens in Near Real-Time
We all can’t be Amazon, which has the tools and capabilities to reprice its products every second if the company desired. However, your repricer should still be fast enough to implement price changes competitively, which means in near real-time. For example, at Wiser, we like to be able to reprice every 15 minutes if needed. This ensures that you can keep up with the competition.
Software Gives You Added Context
You can’t reprice in a vacuum. While the core functionality of a repricing tool is above, the best software can give you a little extra insight into what’s going on around you. For instance, you should look for a partner who can provide visibility into key products during price-sensitive periods, such as promotional cycles. You also want to monitor competitor prices to influence your own data-driven pricing strategies or set rules that respond directly to what a competitor is doing.
Automates What Needs to Be Automated
At its core, a good tool—whether an Amazon repricer, an eBay repricer, or something else—removes manual workflows from your daily life. It needs to streamline your process with the option to automate pricing changes based on your rules or provide its own suggestions based on contextual data that make your prices better and your life easier. You shouldn’t be doing more work with a repricer.
At the end of the day, choose a tool that makes you confident in your repricing strategy, gives you enough resources to remain competitive, and provides data-driven insights into your market that make you smarter and more effective at your job.