Repricing Strategies

SellerMagnet currently offers 6 different Repricing strategies: 4 made for Resellers and 2 made for Brand owners (private label sellers).

Here’s a detailed explanation of why each repricing strategy might be used, including practical examples to show how each one works in real-world situations.

A. Strategies for Resellers

1. BuyBox Strategy:

Maximize Visibility and Sales Volume

Why Use It: The BuyBox is the holy grail for Amazon sellers. Around 80% of all Amazon sales go through the BuyBox. Winning it significantly boosts your product's chances of being purchased. This strategy dynamically adjusts your price to improve your chances of winning the BuyBox while considering essential factors like fulfillment method (FBA/FBM), shipping speed and seller rating.

How It Works: The repricer automatically analyzes the BuyBox price and sets your price to be competitive without necessarily being the lowest. It balances competitiveness and profitability. Once the BuyBox is secured, the repricer tries to increase the price without losing the BuyBox.

Best For:

  • Sellers using Fulfillment by Amazon (FBA).

  • Sellers with strong seller performance metrics (high feedback score, fast shipping).

  • Products with high competition where visibility matters most.

Practical Example: You sell Wireless Earbuds for $29.99, but the BuyBox price fluctuates between $27.99 and $30.50. The repricer adjusts your price to $28.99, enough to remain competitive and win the BuyBox without undercutting unnecessarily.

Why This Helps: You boost sales without sacrificing your entire profit margin.

2. Default (Lowest Price) Strategy:

Attract Price-Sensitive Customers

Why Use It: This strategy is designed to always make your product the cheapest available. It’s perfect for highly competitive markets where customers choose based on price.

How It Works: The repricer constantly monitors competitors’ prices and ensures your price remains the lowest on the listing. However, this can sometimes result in a "race to the bottom."

Best For:

  • Clearing out old inventory.

  • Selling commoditized products where differentiation is minimal.

  • Attracting price-sensitive buyers.

Practical Example: You sell Phone Chargers that cost $3.00 to produce. Your competitors price between $4.50 and $5.50. The repricer sets your price at $4.49, ensuring you’re always the lowest-priced option while keeping a small margin.

Why This Helps: Great for quick inventory turnover, but watch out for shrinking margins.

3. Position Strategy:

Control Your Pricing Position

Why Use It: Not every seller wants to be the cheapest. Sometimes, maintaining a specific position in the pricing hierarchy can be more profitable and sustainable, especially if your main competitor is Amazon (with unfair low price or if another seller is doing a liquidation of that product). This strategy lets you choose to be the 2nd lowest, 3rd lowest, and so on.

How It Works: The repricer monitors competitor prices and positions you at the exact rank you prefer. This avoids unnecessary price drops while keeping you visible.

Best For:

  • Sellers aiming to avoid price wars.

  • Products with medium to high margins where being second or third is still competitive.

Practical Example: You sell Organic Protein Powder priced at $39.99. The lowest competitor price is $36.99. Instead of undercutting to $36.98, you choose to be the 2nd lowest at $38.49.

Why This Helps: Keeps you competitive without slashing prices unnecessarily.

4. Same Price As Strategy:

Match Your Key Competitors

Why Use It: When you’re in direct competition with a specific seller, matching their price can help you stay competitive without undercutting each other. Keep in mind that if you have better metrics than your competitors, you will win the BuyBox.

How It Works: You input the Seller ID of the competitor you want to match. The repricer automatically adjusts your price to mirror theirs.

Best For:

  • Sellers in niche markets with few competitors.

  • Ensuring compliance with MAP (Minimum Advertised Price) policies.

Practical Example: You sell a High-End Gaming Mouse priced at $89.99. You want to match Seller X because they have the same product and strong brand presence. By using their Seller ID, your price will always mirror theirs, ensuring fairness and parity.

Why This Helps: Creates a stable price environment and avoids unnecessary price wars.

B. Strategies for Brand Owners (Private Label)

1. BrandGuard Strategy (Strategy ID: 5)

What is BrandGuard?

The BrandGuard strategy is designed to protect your brand’s pricing by dynamically adjusting your product’s price based on:

  • Competitor pricing for similar products (identified by their ASINs).

  • Your product’s sales velocity (how quickly it’s selling).

  • Your inventory levels (how much stock you have).

  • Predefined minimum and maximum price thresholds to ensure profitability.

This strategy is ideal for brand owners who want to maintain competitive pricing while avoiding price wars, ensuring prices reflect demand and inventory, and staying within safe profit margins.

How Does BrandGuard Work?

The BrandGuard strategy follows these steps to calculate a new price for your product:

  1. Fetch Your Current Price: The system retrieves your current Amazon listing price for the product (ASIN) and checks if your listing is active. If your listing is inactive (e.g., out of stock), the strategy stops and logs “STOCK.”

  2. Calculate Sales Velocity: The system queries your sales data for the product (SKU) over a user-defined period (e.g., 7 days).

    • Sales velocity is calculated as the total units sold divided by the period (e.g., 10 units sold over 7 days = 1.43 units/day).

    • If no sales data is available, sales velocity is set to 0.

  3. Fetch Inventory Level: The system checks your current inventory for the product (SKU) in the specified marketplace.

    • If no inventory data is available, inventory is assumed to be 0.

  4. Fetch Competitor Prices: For each competitor ASIN you provided (up to 5), the system retrieves the lowest offer price (excluding shipping) from Amazon.

    • If competitor prices are available, the system calculates the median price (the middle value when sorted) to represent a fair market price.

    • If no competitor prices are found, the strategy proceeds without this data.

  5. Set Price Thresholds:

    • The minimum price is your defined min_threshold, ensuring you don’t sell below your desired profit margin.

    • The maximum price starts as your defined max_threshold but is adjusted:

      • If competitor median price is available, the maximum price is capped at the median price multiplied by a factor (e.g., 1.2×).

      • If sales velocity exceeds 1.0 units/day, the maximum price is increased by 20% to capitalize on high demand.

  6. Determine Target Price: The system starts with your current price and adjusts it based on inventory and sales velocity:

    • Low Inventory & High Demand (inventory < inventory_threshold_low and sales_velocity > 0.5 units/day): Increase price by up to 10% (current_price × 1.1), but not above the maximum price.

    • High Inventory & Low Demand (inventory > inventory_threshold_high and sales_velocity < 0.2 units/day): Decrease price by up to 5% (current_price × 0.95), but not below the minimum price.

    • Competitor-Based Adjustment (if competitor median price is available): Set the price to the competitor median price minus a small subtraction amount (e.g., $0.01), ensuring it stays within the minimum and maximum thresholds.

    • If none of these conditions apply, the current price is retained.

  7. Limit Price Changes: To avoid drastic price swings, the system ensures the new price doesn’t change by more than a maximum percentage (e.g., 10%) from the current price.

    • If the target price exceeds this limit, it’s adjusted to the maximum allowable change (e.g., current_price ± 10%).

  8. Validate and Apply Price:

    • The target price is rounded to two decimal places.

    • If the price is outside the minimum or maximum thresholds, the system logs the issue, sends a webhook notification, and does not change the price.

    • If the target price equals the current price, no change is made.

    • Otherwise, the new price is applied to your Amazon listing.

Inputs You Need to Provide

When setting up a BrandGuard repricer, you’ll need to configure the following fields in the repricing tool:

  • Competitor ASINs (competitor_asins): A comma-separated list of up to 5 ASINs for similar products to monitor (e.g., B0ABC12345,B0XYZ67890). Each ASIN must be a valid 10-character alphanumeric code.

  • Sales Velocity Period (sales_velocity_period): The number of days to calculate sales velocity (e.g., 7 for a week). Default: 7 days.

  • Low Inventory Threshold (inventory_threshold_low): The inventory level below which prices increase due to scarcity (e.g., 10 units). Default: 10 units.

  • High Inventory Threshold (inventory_threshold_high): The inventory level above which prices decrease to clear stock (e.g., 50 units). Must be greater than the low threshold. Default: 50 units.

  • Minimum Price (min_threshold): The lowest price you’re willing to sell at to protect your margins (e.g., $10.00).

  • Maximum Price (max_threshold): The highest price you’re willing to set (e.g., $50.00).

  • Price Subtraction Amount (configured in backend, not frontend): A small amount (e.g., $0.01) subtracted from the competitor median price to stay competitive.

  • Maximum Price Multiplier (backend): A factor (e.g., 1.2) to cap the maximum price relative to competitor median price.

  • Maximum Price Change Percent (backend): The maximum percentage change allowed per repricing cycle (e.g., 10%).

Example Scenario

Setup:

  • Your product: ASIN B012345678, current price $20.00, SKU PROD123.

  • Competitor ASINs: B098765432,B054321098.

  • Sales velocity period: 7 days.

  • Low inventory threshold: 10 units.

  • High inventory threshold: 50 units.

  • Minimum price: $15.00.

  • Maximum price: $30.00.

  • Backend settings: Price subtraction amount = $0.01, max price multiplier = 1.2, max price change percent = 10%.

Execution:

  1. Current Price: $20.00 (fetched from Amazon).

  2. Sales Velocity: Over 7 days, 14 units sold → 14 ÷ 7 = 2.0 units/day.

  3. Inventory: 8 units (below low threshold of 10).

  4. Competitor Prices: ASIN B098765432 lowest price = $22.00, ASIN B054321098 lowest price = $18.00 → median = $20.00.

  5. Thresholds:

    • Minimum price: $15.00.

    • Maximum price: min($30.00, $20.00 × 1.2 = $24.00) = $24.00.

    • Since sales velocity > 1.0, max price = $24.00 × 1.2 = $28.80.

  6. Target Price:

    • Inventory (8) < 10 and sales velocity (2.0) > 0.5 → Increase price to $20.00 × 1.1 = $22.00.

    • Competitor median adjustment: $20.00 − $0.01 = $19.99, but low inventory rule takes precedence → $22.00.

    • Price change limit: $22.00 is within ±10% of $20.00 ($18.00–$22.00), so it’s allowed.

  7. Final Price: $22.00, reflecting high demand and low stock while staying competitive.

2. Competitor ASIN-BuyBox Sync Strategy (Strategy ID: 6)

What is CompetitorASINBuyBoxSync?

The CompetitorASINBuyBoxSync strategy synchronizes your product’s price with the Buy Box price of a specific competitor’s product (identified by its ASIN), adjusted by a user-defined factor. This strategy is perfect for sellers who want to closely match or undercut the Buy Box price of a similar or identical product sold by a competitor, ensuring competitiveness while maintaining control over pricing.

How Does CompetitorASINBuyBoxSync Work?

The CompetitorASINBuyBoxSync strategy follows these steps to calculate a new price:

  1. Fetch Your Current Price:

    • The system retrieves your current Amazon listing price for the product (ASIN) and verifies that your listing is active.

    • If inactive, the strategy stops and logs STOCK.

  2. Fetch Competitor’s Buy Box Price:

    • The system queries the Buy Box price for the specified competitor ASIN.

    • If no Buy Box data is available (e.g., no active Buy Box), the strategy stops and logs NO_BUYBOX.

    • If no competitor ASIN is provided, it logs INVALID_ASIN and stops.

  3. Calculate Target Price:

    • Multiply the competitor’s Buy Box price by the price adjustment factor (e.g., 0.99 to price slightly below the Buy Box).

    • Round the result to two decimal places.

  4. Check for Price Change:

    • If the target price is within $0.01 of your current price (to account for floating-point precision), no change is made.

    • Otherwise, the target price is applied, provided it falls within your minimum and maximum price thresholds (enforced in the backend).

Inputs You Need to Provide

When setting up a CompetitorASINBuyBoxSync repricer, configure the following:

  • Competitor ASIN (competitor_asin): A single ASIN for the competitor product whose Buy Box price you want to sync with (e.g., B0ABC12345). Must be a valid 10-character alphanumeric code.

  • Price Adjustment Factor (price_adjustment_factor): A multiplier applied to the competitor’s Buy Box price (e.g., 0.99 to price 1% below, 1.0 to match, 1.05 to price 5% above). Must be between 0.5 and 1.5. Default: 1.0.

  • Minimum Price (min_threshold): The lowest price you’re willing to sell at (e.g., $10.00).

  • Maximum Price (max_threshold): The highest price you’re willing to set (e.g., $50.00).

Example Scenario

Setup:

  • Your product: ASIN B012345678, current price $25.00.

  • Competitor ASIN: B098765432.

  • Price adjustment factor: 0.99.

  • Minimum price: $20.00.

  • Maximum price: $30.00.

Execution:

  1. Current Price: $25.00 (fetched from Amazon).

  2. Competitor Buy Box Price: $24.50 (fetched for ASIN B098765432).

  3. Target Price: $24.50 × 0.99 = $24.255 → rounded to $24.26.

  4. Price Change Check: $24.26 differs from $25.00 by more than $0.01, so a change is needed.

  5. Threshold Check: $24.26 is within $20.00–$30.00.

  6. Result: Your price is updated to $24.26 to stay just below the competitor’s Buy Box price.

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