What Is Game Theory Intelligence and How Can It Help Amazon Sellers
Many online retailers dream of having a successful eCommerce business. While some chooses to have their own eCommerce store, some choose to sell with one of the most popular and largest online retailer in the world, the Amazon. The primary reason why they choose Amazon is that the platform has already established a solid foundation in the market. In fact, if you get to ask a hundred people in the street about Amazon, more likely, they know the platform well and probably use it to buy products. This is the reason why most online retailers opt to become an Amazon seller to take advantage of this vast marketplace.
However, becoming an Amazon seller also comes with many challenges as well as struggles. Since the platform openly offers an incredible opportunity for people who wish to become an online retailer, millions have jumped onto the platform creating excessive competition. With this, it makes hard, especially for the new sellers, to break in. Furthermore, the competition often drags sellers into the price wars that sometimes lead to razor-thin profit margins.
But thanks to the innovative solution of Eli Engelberg, founder and current CEO of Seller Snap, they have created an Intelligent Amazon repricing software that is purely based on game theory intelligence. It changes the way sellers reprice their product listings as well as avoiding the price wars and keep their profit margin competitive.
What Is Game Theory Intelligence?
The game theory intelligence analyzes how Amazon sellers are changing their listing price with the current market situation. The program tries to understand their strategies and what motivates them to do such price change. By successfully figuring out your competitor’s pricing strategy, game theory intelligence helps the seller to react with a proper repricing strategy that could still potentially win the ‘Buy Box’ without engaging in a price war, thus keeping their profit margin high.
How Can It Help Amazon Sellers?
Thanks to the game theory principle, game theory repricer was born that provide Amazon sellers the capability to take control of their repricing strategies without starting a war. The repricer can automatically apply the best pricing strategy in any given situation. Below are some essential benefits of the game theory repricer and how it can help Amazon sellers.
Saves you more time and money
Time and money are essential if one wants to succeed in their Amazon business. Since most of your competitors are constantly changing their prices, you need to update yours also to keep your price competitive constantly. Every seller needs to update their price not only to win the eyes of the consumers but as well as winning the ‘Buy Box.’ However, without using a repricer software, one has to do their repricing manually and doing so would only at a significant amount of their time and effort.
On the other hand, by utilizing a repricer software, it allows you to manage hundreds, and even thousands of your listings easily and effectively eliminate the time-consuming task such as product repricing. The software can automatically adjust your listing prices even without lifting a finger. The software will intelligently scan the current market prices, especially your direct competitors, and automatically do the repricing process.
By successfully eliminating the time you have to spend on manual repricing, you’ll gain more time for more critical aspects of your business, like product research, etc. An intelligent repricing software provides a strategic advantage since you get to do more in the least amount of time.
Win the Buy Box without losing too much of your profit
If you didn’t know what the ‘Buy Box’ is, the Amazon buy box is usually located on the ride side of the screen containing the ‘Add to Cart’ or ‘Buy Now’ button. According to the platform itself, 80% of their sales were generated through the buy box. Having said that, almost all Amazon sellers are aiming to win the buy box as much as possible.
If you are not using a repricer software, chances are, you either price your listings too high or too low. Pricing your products too high would only blow away potential buyers since they’ll likely find someone else that offers a better price. Pricing your products too low, you’re at risk of stocking out without getting a good profit. Either way, it would be difficult for you to win the buy box. Using a repricer software, it helps you to determine the right amount you should sell for a given time and then automatically adjust the price when necessary. It helps you to maximize your profit by keeping your pricing in a competitive advantage.
Avoid Miscalculations and reduce typographical errors
Since there’s a constant change in Amazon pricing, manually changing your pricing could sometimes lead to price miscalculations and typographical errors. Just by making a single typo error could potentially lead to a huge loss of sale. If one mistakenly adds just one numeral in their pricing, buyers would tend to look for a more competitive price than yours. Or if one mistakenly put the decimal point in the wrong place, it could cause a major cash flow issues.
With the help of an intelligent repricing software, it can do all the complex calculations for you with just a click from your mouse. It will automatically calculate your maximum and minimum profits for you, thus saving you time and avoid any possible miscalculation and typographical errors.
Effectively compete with your competitors
As we have mentioned earlier, Amazon has the most intensely competitive marketplace. Being able to understand your competitor’s pricing strategies, it gives you a significant advantage to develop a stronger strategy. However, doing competitor research and analysis requires effort as well as time to collect the necessary information. Thankfully, an intelligent repricing software can also do it for you.
An intelligent repricing software doesn’t just do the repricing process, but it can also provide you with practical information about your current competitors such as how many competitors you have per listing, their current market pricing, their fulfillment type, and many more. With this data, you can create a strategy on how to make yourself ahead of your competition.
These are just some of the benefits that an intelligent repricing software can offer. So don’t waste your time on manual repricing and utilize the power of intelligent repricing software.
Since 2007, Patrick has devoted himself to the world of digital marketing and highly specializing in SEO for businesses and agencies. He handled an assorted array of projects and was able to contribute significantly to the success of each of his client’s digital marketing campaigns. Today, Patrick spearheads multiple digital marketing campaigns with the help of his team over at the Creative Working Playground.