Billionaire investor Warren Buffett once said, “Price is what you pay. Value is what you get.” His words certainly apply to consumers and sellers in the age of Amazon and Walmart.
First things first: A Smart Repricer is a software that automatically optimizes prices of your products on Amazon, Walmart or Ebay according to factors like competition, cost and shipping to win the Buy Box.
Meanwhile, the coveted Buy Box appears on a product landing page where consumers can add the item to their online shopping carts. If multiple sellers offer the same product, they can compete for the honor of being featured in the product’s Buy Box. As Amazon states, “For many sellers, Buy Box placement can lead to increased sales.” And as many as 82% of Amazon sales go through the Buy Box, and the percentage is even higher for mobile purchases.
Smart repricers and the Buy Box matter because price point matters to today’s comparative shoppers. Today’s savvy, resourceful consumers can easily look around for the lowest price. Let’s look at what it takes for sellers to appear in the Buy Box – and how AI-driven repricers can help.
Buy Box status is like a World Cup win for Amazon & Walmart sellers
Among sellers, winning the Buy Box once benefits you over the long term. Once you’re in, you tend to earn more sales and product reviews, which increases your eligibility to be featured again. and using dynamic pricing can help you get that first ‘in’. Using a smart repricing strategy can give sellers a competitive advantage and make them more profitable by achieving timely, attractive prices that will win you the Buy Box.
The petite yet powerful “Add to Basket” button has emerged as the holy grail of retail. Why? It means Amazon’s & Walmart’s mysterious algorithms select your company among competing rivals who sell similar goods. Your company gets pushed to the top of the visibility ranking, dramatically improving your likelihood of converting online browsers into buyers.
That’s why every successful eCommerce strategy simply must include these large marketplaces because, “You can’t ignore a channel which has so much reach.” It’s a lucrative opportunity, yet it can be stressful because there’s so much competition. You want to win sales without compromising profit margin and Intelligence Node’s repricers do just that.
Sellers need to focus on overall value (not just price)
Although price matters to shoppers buying on Amazon or Walmart, sellers need to consider the overall value of a repricer solution (not just the lowest price tag.) Amid the sea of repricers, most retail sellers tend to choose according to their budget. Yet not all Amazon or Walmart repricers are equal. Sellers may be wasting their investment by focusing on bargains alone, as there is so much more you need, to win the Buy Box.
Here are four things your company needs to win the in-demand Buy Box:
1. Frequent pricing updates
On Amazon’s marketplace, product prices fluctuate as often as every 15 minutes and Walmart too has joined the dynamic pricing bandwagon and updates its product prices multiple times in a day . In response, a successful repricer can constantly monitor the global eCommerce landscape and update your pricing as often as every 10 seconds. Perpetual price scanning and data insights mean you are better positioned to deliver an optimal price at any time. Real-time market intelligence keeps you competitive and increases your chances of winning the Buy Box with the prices that consumers – and Amazon & Walmart – find desirable.
2. Predictive price & stock change
Too many marketplace repricers are backwards – literally. They focus on retrospective analysis of historical pricing information, whereas an ideal Smart Repricer looks forward and accurately predicts pricing changes. Winning Amazon & Walmart repricers excel at proactively anticipating price movements based on factors like seasonality, time of the day, demand, and product category.
For example, strong seasonal demand for hot packs (which consumers insert in their winter gloves to keep their hands warm) increases between Black Friday and Christmas, as consumers stock up before ski season starts. Effective repricers can anticipate how much the price of hot packs will rise during the last few weeks of the year as the demand increases and inventory decreases and also predict stock levels so you do not run out-of-stock and lose your listing on the buy-box.
3. A robust, holistic approach
Multiple factors matter when competing for the Buy Box. Your Buy Box status depends on much more than price and, as we know, the Buy Box drives purchases. That’s why robust repricer algorithms consider multiple factors, such as: the number of sellers, product and company reviews, product categories, delivery speed, time of the day and the number of products sold. Looking at all these characteristics leads to a rich big picture to ensure you are best positioned to win the Buy Box.
For instance, the faster you can ship a product and get it to an online shopper’s doorstep, the better your chances of winning the Buy Box. Fast delivery matters, especially among Amazon’s 100 million Prime members. On average, Prime members expect their free deliveries to arrive within a maximum of 3.8 days, as they have been conditioned to expect free 2-day shipping for many purchases. The same applies to Walmart who started offering express deliveries amidst the peak of COVID-19 and now there’s no going back.
Ultimately, these two retail giants reward the seller that can deliver the best overall shopping experience, including factors like pricing, availability, fulfillment, performance metrics and customer service. Although, winning the buy-box is slightly more straight forward for Walmart who gives maximum points to low prices and product availability. Notably, Amazon rotates which seller wins the coveted Buy Box, so there is always an incentive to compete for the sales spotlight.
4. Knowing (and adapting to) all your competitors
Great repricers can make price modifications based on the number of sellers, which reflects the market’s supply and demand. Specifically there tends to be an inverse relationship between the number of sellers and the price of a product.
Yet data can help you take things one step further. That’s because the number of sellers is also impacted by product attributes. For instance, rather than merely considering sellers with products that exactly match your product, you can use advanced similarity matching. Advanced similarity matching helps to see sellers with products that are similar (not just identical) to yours.
An exceptional repricer helps you to expand your competitive pool, with a 360-degree perspective to compare your offerings to exact and similar product matches. (E.g. An exact match might be a royal blue Adidas warm-up jacket; however, similar products might include royal blue, baby blue and navy jackets from Under Armour, Lulu Lemon and Danskin.) By adding similar matches, you get an even bigger picture of relevant products that your target may consider. More data means richer competitive insights, so you can respond to your entire competitive arena, not just a fraction of your rivals.
Why limit yourself? Instead you could access more accurate competitive product benchmarking, which factors in any number of relevant competitor products. As a result, you gain access to the best price, without bleeding out profit margins for the sake of staying competitive, while achieving top visibility ranking.
Bottom line: Amazon & Walmart are hot and are only getting hotter, with the accelerated shift to eCommerce. Since the competition to win the Buy Box is already fierce, repricing software has evolved into an essential part of online sellers’ eCommerce strategy.
If the best practices list seems too good to be true, it’s not. Intelligence Node’s 360°Pricing Amazon & Walmart repricer solution offers frequent price updates, predictive pricing, a holistic market view, and exact and similar product matching. 360°Pricing gives you the richest data insights so your price is always right without having to resort to deep discounts.
Using our proven 360°Pricing, the Smart Repricer makes competitive pricing analysis easy and stress-free with automated, AI-driven insights. You can sit back and relax knowing you are staying competitive by maximizing your attractiveness – and profitability – on the all-mighty marketplaces. Give it a try and see it for yourself by booking a demo with us.