B. Strategies for Brand Owner (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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