Repricing

Repricing – what is it?

Repricing is simply the continuous process of adjust your products’ prices so that they aren’t too low or too high. For e-commerce brands, the main goal of repricing is to stay competitive and always be up-to-date with different market changes.

As simple as repricing method may seem, it’s sometimes misunderstood as running for the bottom and always appearing as the cheapest offer on the market. Moreover, being “always the cheapest” may cause dangerous price wars in which there is no winner.

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Repricing – who should benefit from it?

Basically, every business operating in the e-commerce market should benefit from implementing repricing method into its’ structure. Repricing is particularly helpful for e-shops with a wide range of different products.

If you are wondering what benefits does this method provide, take a look at these:

Higher profits – Repricing spots opportunities for higher profits much better than anyone could do it manually. What’s more, it automatizes the pricing process and adjusts it by given circumstances such as lack of availability in stores of your competitors
Time savings – Manually adjusting prices is nothing but a nightmare and a real energy drainer. Our system will match the prices accordingly, and you can always control the results of recent repricing actions in a transparent panel

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How does Repricing work?

First, you have to determine the products for which you want to use repricing.
Then, you have to specify the rules according to which the prices are to be set (see below for some examples). You can define different ones for different product categories, sales channels and locations.
Based on data collected from the market, ERP systems, etc., the system will propose prices for your shop. You can choose to have your prices changed automatically based on Dealavo repricing calculations, but you can also require that every proposed change be approved before it is applied to the sales channels.
It is also important to follow up on the results of your actions – you might want to check if the rules you use to define the prices are optimal. You can also test various repricing rules.

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We monitor your competitors prices

Google Shopping Repricing

The Google search engine is the most powerful tool worldwide when it comes to searching for specific products. No wonder Google Shopping is the second, after Amazon, the most popular platform for customers and retailers to search, compare, buy, and sell.

Even though Google Shopping provides price comparison features, the engine promotes products of companies that cooperate with Google Corp on a wider scale. Thus, using an independent monitoring and repricing tool shows you the bigger and real picture of how the market actually looks like.

Moreover, being the second most popular platform, Google Shopping is a highly competitive marketplace for retailers, especially those who just kickstarted offering their products. But it doesn’t matter whether you are an experienced merchant or a beginner – will need to respond to dynamic market changes anyway.

There’s where repricing comes in handy. With a proper repricing tool, you can track prices, employ strategies, set pricing rules, and react immediately when your competitors’ offers or assortment change.

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Amazon Repricing

Amazon is now the most dominant company in the e-commerce branch having the biggest market share in the United States reaching 43% in online sales and ca. 44% of all product searches in the U.S. The platform gives a lot of opportunities when it comes to increasing sales results or gaining new clients. But the dark side is the harsh competition that might take actions and negatively influence the brand image and enterprise revenue.

Dealavo software solution for e-commerce allows you not only to monitor prices on Amazon but also to set dynamic pricing rules to overtake your competitors. It’s not a secret that Amazon is a price-oriented platform. That is why kicking off with price monitoring is simply a must if you want to be a successful Amazon vendor.

Due to a double verification conducted by our Machine Learning algorithms, we guarantee to provide real value through the highest data quality. Moreover, Dealavo allows you to monitor various product pages, not only these included in BuyBox.

By using repricing you can control your margin and increase sales volume on Amazon easily and error-free. Try out Dealavo to implement price optimization in your e-store.

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eBay Repricing

With over 150 million active users, eBay is still one of the biggest marketplaces and the largest auction website. According to the statistics, eBay:

Offers over 1.5 billion listings
Generated 10.2 billion USD in revenue in 2020
Has over 109 million visitors each month
Is popular on several markets, including the US, Canada, Australia, France, Italy, Germany, and Spain.

Therefore, it’s also a good place for your business to enter. Nevertheless, you still need to remember to monitor and optimize your pricing. This way, you will ensure sufficient profit and good exposure of your listings. But that’s the role for Dealavo. With our repricing feature, you can set predefined rules, e.g., for your product to be visible in TOP5 in a specific product category on eBay. And because our platform uses AI-powered algorithms, it is all automated.

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Repricing Software

When it comes to running an e-commerce business using repricing software is a must. The repricing tool helps you out with:

identifying price fluctuations,
planning and implementing pricing strategies,
setting pricing rules,
price automation,
increasing your profit,
controlling the margin,
and many more…

Give it a try, and make your business grow.

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Which pricing automation rules can be used?

The rules for automatic pricing frequently depend on the nature of the particular industry, company or sales channel. Below, we have provided examples of the most popular rules:

TOP 3 on the particular platform – use this rule to be included among the first 3 offers in a specific sales channel, e.g., Google Shopping.
Between two competitors – the rule allows for automated price setting between the selected competitors.
Below/above selected numerical attributes – this option offers the possibility to set the target profit margin as a specific amount or percentage (e.g. the specified product price should include a margin of at least 5%).
Below/above selected competitors – if we use this rule, the algorithm will generate lower or higher prices than the prices of our selected competitors.
Increase/decrease by a specific amount/percentage – this option allows you to decrease the price by a specific amount or percentage in a specific period of time. This means that, for example, the price of a product will be reduced by PLN 1 every three days.

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Additional pricing automation rules

By cost – this rule is based on the “cost-plus” method.
Based on competitor market position – if you use this option, the prices of the products will be based on the market position of your competition. You can, for instance, set prices that will be higher than those offered by the cheapest competition.
Low inventory – this option is very useful with end-of-line products and clearance sales; it allows for automated price reduction until your inventory level is low.
Profit optimization – AI and exploration – this rule is particularly interesting. It allows you to have your prices optimised by artificial intelligence (AI). The algorithm learns from the gathered data and adjusts the prices to the market conditions in the most optimal manner.

Use Case

The Use Case describes how we managed the repricing system in a highly competitive market of Consumer electronicsgoods.

Our Repricing system can optimise the prices to set our client’s products among 5 cheapest available offers at Amazon, as long as the margin is not lower than a specific percentage. If this rule cannot be met, a different rule is used, ensuring that the product is not the most expensive product on the platform (in this case, too, there is a specific limit).

Initially, our client applied this rule to only one product group, using different rules for other categories. Thanks to A/B tests of repricing rules, however, the client found out that the described pricing method provided the best results, and they decided to use them for a wider range of products.

You might also be interested in the best tracking tools on the market.

See more information about dynamic pricing on our blog and

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FAQ

How reliable is the data that Dealavo collects?

In data collection business quality is a very important issue. Making decisions based on wrong data may be very costly for businesses. On the other hand putting resources into collecting, cleaning and processing lots of data without understanding its significance for the business decisions may be extremely cost ineffective.

In Dealavo we make sure that the data that we provide will help our clients achieve their business goals and we can guarantee it under SLA. To make sure that you receive the quality you expect we may use 3 frameworks:

automatic data cleaning – Machine Learning and Natural Language Processing algorithms – lowest price but highest error rates
manual data cleaning – all data points will be manually verified by our QA/Data Cleaning human operators – highest cost and highest quality
hybrid – Algorithms + Human operators – acceptable quality at a competitive cost

At Dealavo we are very up-front about data quality and we help you decide which solution and framework will be the best for your needs.

Why should I use Dealavo when I can collect all the data manually?

Compared to manual processes Dealavo is much faster and saves you time and money. In most typical settings Dealavo probably will be also less error-prone than manual work since we specialize in this field.

We developed custom back-office tools, algorithms and streamlined processes to make sure you have good quality data on time.
Besides data collection is just the beginning – You need business insights and support in decision-making, not data.

How often can the system update the prices in my shop according to the price rules?

Thanks to the Dynamic Pricing platform and all the collected data, our algorithm can recommend a price that will attract the client and guarantee optimal profits. The system update may occur even a few times a day.

What input does Dealavo need?

Essential parameters are:
– product name,
– EAN (CounterPrice only),
– product ID from Woocommerce.

Gross purchase price is also highly recommended, as that enables the user to set limits of suggested prices based on a minimal margin or markup.

Where does Dealavo share price recommendations?

Dealavo generates gross retail price recommendations according to the price rules set by the client and shares them in a gross retail price for the shop field.

We ensure a successful cooperation

Kasia, Customer Success Manager
I believe that better relations with clients equal a greater success for both sides. It’s very satisfying when I can help a client to maximize his values with Dealavo and achieve his long-term goals.
Ola, Customer Success
When it comes to contact with clients, the crucial part is kindness and an individual approach – an attempt to build a strong business relationship based on the client’s needs. At Dealavo we care for our clients success, that is why we do our best to make their work easier, by providing accurate data to simplify decision making process.
Kasia, Customer Success
In my job with clients, the most important factors are good relations and trust so I can show them the actual benefits of the cooperation. It’s hugely satisfying to implement solutions together and assist the clients with their daily work as well as their business development. It’s amazing to watch them growing.
Monika, Customer Success
The favorite part of my job is contact with people. It’s satisfying to help the clients and meet their needs. I enjoy being the client’s “voice” at Dealavo and taking care of the constant growth of our product. Happy client = happy me 🙂