Reseller Strategies
Repricing for resellers focuses on dynamic competition within shared listings, where multiple sellers compete for the same ASIN and the BuyBox. Each strategy is designed to maximize visibility, BuyBox share, and profitability while minimizing unnecessary price wars.
Understanding the BuyBox
The BuyBox is the main “Add to Cart” section on an Amazon product page. More than 80% of all Amazon sales happen through it, which means that if your product is not in the BuyBox, most buyers will not see your offer.
How Amazon Determines the BuyBox Winner:
Price: Competitive, but not necessarily the lowest.
Fulfillment Method: FBA offers usually have an advantage over FBM.
Seller Performance: Includes feedback rating, order defect rate, and shipping reliability.
Stock Availability: If you are out of stock, you cannot appear in the BuyBox.
Delivery Speed: Faster shipping options improve your chances of winning.
Having the lowest price does not always mean winning the BuyBox. Amazon rewards overall performance and reliability.
1. Lowest Price Strategy
The Lowest Price Strategy automatically adjusts your price to stay slightly below the lowest active competitor on the same ASIN.
How It Works:
The repricer scans all active offers for your ASIN.
It identifies the lowest competitor price, excluding your own.
Your listing price is updated to remain just below that competitor, within your configured minimum and maximum profit margins.
Example: If the lowest competitor price is $24.99, your repricer will set your price at $24.98, provided it stays above your minimum threshold.
Be careful when using this strategy. It can trigger price wars, especially if other sellers also use automated repricers. SellerMagnet’s guardrails ensure your price never drops below your minimum profit margin, protecting your profitability.
Important: The BuyBox is not determined by price alone. Even if your offer is cheaper, a competitor with better performance or FBA fulfillment (if you use FBM) may still win the BuyBox.
When to Use:
Highly competitive listings with frequent price changes.
Fast-moving, commodity-type products such as electronics accessories.
Avoid When:
Competing with other automated repricers.
Selling products with limited margins or low sales velocity.
2. BuyBox Strategy
The BuyBox Strategy continuously analyzes your competitors in real time, evaluating price, reviews, stock, and fulfillment type to win and maintain the BuyBox.
How It Works:
The repricer analyzes all competitor metrics.
It sets an initial price within your minimum and maximum thresholds.
If the BuyBox has not yet been won, it gradually lowers your price until your offer gains it.
Once the BuyBox is secured, the repricer carefully increases your price to improve margins while maintaining the BuyBox.
Example: If you are an FBA seller and your competitors are FBM, you might win the BuyBox even at a higher price, since Amazon tends to prioritize FBA listings for better delivery reliability.
When to Use:
When the BuyBox share is your main sales driver.
When you are an FBA seller or have high account performance metrics.
Avoid When:
Operating in low-margin markets.
Competing in listings dominated by automatic repricing tools.
3. Position Strategy
The Position Strategy allows you to maintain a stable price ranking, such as being the second or third lowest offer on the listing.
How It Works:
The repricer monitors all active competitor prices.
You set a target ranking, such as position number two.
SellerMagnet dynamically updates your price to stay in that chosen position.
Example: If the lowest offer is $19.99 and the second is $20.49, selecting position two keeps your price at $20.49.
When Amazon Is the First Seller: If Amazon is the primary offer on the listing, it is often very difficult to compete directly on price. In that case, set your minimum and maximum thresholds slightly above Amazon’s offer but below the next external competitor. Maintaining position number two ensures that you automatically win the BuyBox once Amazon’s stock runs out.
When to Use:
Listings with consistent pricing behavior.
Scenarios where Amazon or major resellers dominate pricing.
Avoid When:
Market prices change unpredictably.
You need to win the BuyBox immediately. Use the BuyBox Strategy instead.
4. Same Price Strategy
The Same Price Strategy synchronizes your product’s price with a chosen competitor’s listing. It is ideal for MAP (Minimum Advertised Price) compliance or for maintaining parity agreements.
How It Works:
You select a competitor’s Seller ID to mirror.
The repricer monitors their price continuously.
Your price automatically matches their offer, within your safety limits.
Example: If your competitor lists a product for $34.99, your repricer automatically matches that price.
Competitive Advantage Case: When your seller score, fulfillment method, or delivery time is superior, you will often win the BuyBox even when your price is identical to the competitor’s offer.
When to Use:
When enforcing MAP or maintaining partner price consistency.
When your offer is objectively stronger due to better seller metrics.
Avoid When:
Competing in listings with highly volatile pricing.
Facing sellers who frequently alter their prices.
🧩 Summary Table
Lowest Price
Undercut competitors
High-competition listings
Price wars and reduced margin
BuyBox
Win and maintain BuyBox
FBA or top-rated sellers
Requires consistent stock and metrics
Position
Maintain stable price rank
Compete with Amazon or major resellers
Potential missed sales if competitors drop prices quickly
Same Price
Maintain price parity or MAP
Premium or regulated listings
Reduced flexibility in fast-changing markets
Select your repricing strategy according to your business model, inventory status, and competition level. Combine your strategy with SellerMagnet’s Alerts to react quickly when market conditions change.
Last updated