As we mentioned in our previous post, any serious player in online retail arbitrage is going to have to take advantage of an automated repricing software to keep up with managing their pricing strategies. This business model is digital, and digital means automated. You’re going to have to trust your tech if you want to succeed on a platform that’s dependent on tech. Otherwise, you’re simply going to get left behind by competitors who are using repricers.
One of the most common complaints we hear about repricing software packages is that they are incredibly complex to use. Some complain that the repricing tool they purchased to make their lives easier is actually adding to their workload. And that, clearly, isn’t doing them any good. These tools are designed to reduce workload.
The truth is, there really are a lot of fields in settings where you can enter data and control specific details of your repricing strategies. You could spend a lot of time trying to fill them all in. And in the end, if you make mistakes because you didn’t fully understand everything, it could actually cost you money. That’s because any software tool is only as good as the person who’s using it. For this reason, a lot of people don’t trust repricers, and they do their best to avoid them for as long as possible.
But we’re here to tell you that you don’t have to be afraid of your repricing software. But know this: Despite their complexity, you don’t have to make entries in every settings field to get a satisfactory result in your pricing outcomes. Just because the software is complex doesn’t mean that the way you use it has to be. And that’s the basis for the tip we want to leave you with in this post. That tip is:
Keep it simple!
If you’re new to repricers, that means you’re starting to scale your business. That means your company isn’t huge, it’s growing. So, it’s not reasonable to expect that you’ll be an expert user with your repricer. So, start with the basics. As your business continues to grow, and as you develop your team, you will be able to support more time and effort in price management. Then you can refine the settings in your repricing strategy to do more. Remember that in big companies, the CEO doesn’t spend his time handling pricing policy. He has people for that. You can’t be the one constantly tweaking all of the fine details of your software settings every day – at least not after the very beginning stages. But at the start, all you really need are the basics. So, you can handle it if you keep it simple.
But what are the basics, anyway? Well, the combination of settings you choose to adjust and control are very much up to you. But here is a warning. There are two settings that are absolutely critical to ensuring your repricing software doesn’t wreck you. Two of the most basic and important entries in your settings are your minimum and maximum price settings. I’ve heard stories of people who have lost money because their repricer dropped the price too low. But that’s because they didn’t enter anything in the minimum price field. The software just did its job. But remember, it can’t do a good job unless it knows how low or how high you’re willing to go. So, be sure to fill in these fields.
Another important tip for using repricers is to stay on top of them every day. At the very least, set up a regular schedule for tweaking your settings, and check it daily to make sure it’s operating. For us, every time we ship a batch to Amazon, we assign a new repricing strategy. Remember, prices are constantly changing. Market conditions are always on the move. Frequent checking can keep you from being left behind.
In conclusion, you are right in thinking that repricing software packages are complex. They can even seem intimidating. Just remember that you don’t have to know everything about how a computer works to check your e-mail. In the same way, you can take advantage of the simplest features of your software and still get a big benefit from using it. Just keep it simple in the beginning, and as you scale your business, you can expand the complexity of your repricing strategies with help from your team.
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