Using repricing tools is an excellent way to keep your e-commerce store’s prices updated based on your parameters and conditions, and according to the real market situation. But, what does it mean?
Repricing software is one of the best solutions to set and adjust prices according to the current market status. This means you can automate the process of calculating pricing and optimize your sales strategy in a much more straightforward way than traditionally done.
These tools have different functionalities, but most of them base the repricing according to several rules or conditions set by person in charge of managing the pricing. That means that you can put specific parameters to a particular product to optimize your pricing strategy.
Set up your parameters and optimize your pricing strategy
For example, these are some of the possible scenarios you may find yourself in when using repricing tools:
You can establish a general rule that applies to all the products you have in common with certain competitors. Here you can choose some of your direct competitors or all of them and set, for example, that you want to limit your profit margin up to 15% concerning the purchasing cost.
Thus, if your competitors (the ones included under this general rule) lower their prices for a particular product and its value stays under the limit of your margin profit; then, this rule will not apply for this product, and its price will not go under the marked limit.
Apart from this general rule that applies to a much more extensive segmentation of products, you can also add other more specific rules. These additional rules can apply to a range of products that share a feature such as brand, product type, tag or a particular list of products. Let us explain clearly:
Imagine we want to monitor products of our most direct competitor. By selecting it, this rule will only apply to those products tagged as this competitor. Then, we want our product to be 3% cheaper than this competitor, as well as keep our margin profit limits respected to15%, as set by the general rule.
Another method of repricing could imply, for instance, a price rise. We set a rule that for the products of a particular brand, we want to equal their prices. It turns out that our prices are already the cheapest in the market, and if we want to equal them, we need to raise the price. It would be interesting to know, as we could be losing profits unnecessarily.
The repricing tool’s calculator will automatically set your prices, taking into account all the parameters you want to include. Besides, these rules are applied in order of preference; being the more specific rules the ones that weight more in comparison to the general rule.
Another attractive characteristic of this repricing software is the fact that you can even add a rule that prohibits the program affect any certain products or brands. If there is any brand which prices you want to keep untouched, you can determine so and all the products of that brand will not be affected by any of the rules above. Only you will be able to change them manually if needed.
Have an overview of price history and apply the right rule
By using pricing monitoring tools, businesses can have a much more comprehensive insight into the current situation of their products over the internet. Having an overview of the history pricing chart, they can comprehend better how the price of a particular product fluctuated.
Another interesting feature of repricing tools is the final price confirmation. The software will calculate the price according to your conditions; however, to safely set your final prices, you may have to confirm that value before updating the price in your e-commerce feed.
SET YOUR OWN
YOUR NEW PRICE
UPDATE YOUR FEED
Once the prices have been approved, the software will automatically update the new price in your feed, so you do not have to do so manually. By speeding up repricing methodologies, you can offer more competitive prices according to the real market situation.