Repricing for Private Label Sellers – Nice to Have or Necessity?
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Those who choose to earn their livelihood by selling on Amazon usually believe that the easiest way to generate revenue is to resell products by established brands. That is not always the case, especially if you discover a product with a unique component that distinguishes itself from others. In this case, selling over Private Label would be your best bet. You don’t have to fight over the Buy Box, you get to construct your own marketing from the ground up, and the pricing … Wait, what about the pricing? Assuming that you already have experience in Private Label selling on Amazon, we will not cover such questions as “how to register Private Label on Amazon” or “how to sell over Private Label on Amazon” in this article. However, we will focus on the Private Label Amazon business and the importance of using a Private Label repricer.
But let’s start with some basics. What is Amazon Private Label, and how does it work?
Private labeling is a straightforward idea. You purchase your goods from a manufacturer, but you label and promote them under your own name.
Competition may be strong, and in some areas, there are so many Amazon sellers of famous branded items all vying for the same market that earnings might dwindle to zero. You may completely sidestep this competitive arena by sourcing white label items and then private labeling them.
You can profit from other special Private Label related advantages in addition to the lower competition:
You’ve undoubtedly spent a lot of time looking for a clever repricing solution to assist you produce more lucrative sales if you rely on Private Label products to promote your Amazon business, haven’t you?
Assume you’ve just released a new Private Label or white label product and aren’t sure how much the market is prepared to pay for it.
Before you learn how to use the Amazon repricer, let’s dive deeper into what it can do for you. Firstly, it can assist you in determining the ideal Private Label amazon selling price in this case by changing your price up or down based on your goal velocity. The Private Label repricer will also find the happy medium that yields the quantity of sales you’re looking for after a few days of market testing. You can drop or raise that aim over time, and the repricer will alter your pricing as needed to meet your new objectives.
You’ve Probably Heard of the Business Strategy of “Private Label Items,” but What About Private Label Repricing?
The growth of Amazon’s Private Label sellers stemmed from a desire to stand out among the ever-increasing crowd of third-party vendors. Many Amazon listing sites are flooded with several offers, which might be confusing for a customer.
Sellers quickly discovered that being one of many competing offers made it increasingly difficult to stand out and retain sales and profits. So, what’s the solution?
On a listing page that is all yours, sell things under your own brand. Take out the competition. Sounds good? Yes, it is a completely practical and solid business move in many respects.
However, there are a few typical misunderstandings among Private Label sellers that are unlikely to produce the best outcomes. Specifically, the widespread misconception that Private Label products do not require a Private Label repricer.
Let’s look at why this way of thinking hurts Amazon Private Label sellers’ financial performance.
If you think that you don’t have to reprice your Private Label products because there isn’t any competition, you are wrong. There are a lot of Private Label sellers out there. It goes without saying that everyone wants to remove time-consuming and attention-demanding processes. Unless you’ve discovered a niche, the item you’re advertising is very certainly being branded by other sellers. Therefore, though you may be the sole seller on your specific ad, a customer searching for the item you’re offering is likely to come across several additional offers from Private Label and name brand sellers.
While you may be removing direct Amazon listing rivals, you are not removing rival offers for identical items. This scenario explains why the misconception that “Private Label items have no competition” is false.
A smart place to start is to make sure your prices are in line with the current competitive environment for similar items. If you list a Private Label goods at a predefined price with a defined profit margin and then walk away, other Private Label sellers providing comparable things are likely to price their goods lower than yours. In this case, attracting buyers who are seeking for the greatest deal or the best value should be a top focus. When the consumer looks for the thing they want to buy, they are more likely to pick the cheapest goods when they see a lot of items that are practically the same. So, it’s worth thinking about the benefits of a Private Label repricer.
Well, How to Reprice Private Label Product Listings?
This is the most enjoyable part! The following are two of the most effective strategies:
Using a Private Label repricer that allows you to establish criteria for sales velocity thresholds is the ideal approach to implement these tactics.The program should keep increasing your pricing until your sales velocity drops below the lower threshold figures or you continue to get all those sales at much higher pricing.
When you put this up in a Private Label repricer, it will continually monitor all of your listings and, once they match the sales velocity threshold criteria you specified, it should begin to boost pricing for hot selling products right away.
Slow-moving products can benefit from the same method. Should you see less than one sale per week, you may gradually lower your pricing (while maintaining above your minimum price) until you discover a price point that works. If you discover a pricing point that works for you, continue with it until the item becomes more popular.
Any Private Label repricer must have this functionality: you’ll look for listings that are similar to yours but are on other catalog pages.
Make sure you run your own Amazon searches to see what type of listings and deals come up when you search for product keywords that match what you’re offering. Tell your tool which vendors and pricing you’d want to keep an eye on. Then, using those other price values as upper and lower bounds, or based on the averages or lowest costs of other similar offerings, devise tactics for your own pricing.
This technique will guarantee the following: In this pool of similar listings, your pricing will stay competitive. Where applicable, you can even be the lowest-priced offer, which is crucial for increasing Private Label sales. Buyers will almost always choose the item with the lowest price among a set of comparable things.
Repricing under your own brand name is a must! On Amazon, the Private Label repricer has come to be associated with following rivals around, causing price wars, and forcing prices down. It’s a different story for Private Label sellers. It’s all about maximizing revenues, increasing sales velocity, and remaining competitive against other Private Label sellers’ identical offers. All of these things are necessary for a successful Private Label business. You can read about the biggest mistakes in repricing here.
Final Thoughts
Maintaining your rates in the Goldilocks zone for maximum sales while competing against other Amazon Private Label sellers in the same category can be difficult unless you have a repricing system in place to ensure that your listing is always the most attractive among many.
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