How to Optimize Repricing Strategies on Amazon FBA

Introduction

In this blog, we will discuss advanced strategies for repricing on Amazon FBA, covering rules for different scenarios, processes for FBM and FBA offers, key points on FBM and FBA strategies, optimizing buy box performance, and the liquidation process.

Repricing Strategy Overview

• The repricing strategy discussed involves seven different repricing rules for various scenarios.

• The first rule applies to FBA vs. FBA offers, while the second rule is for FBm vs. FBm offers.

• A separate rule is used when the buy box rotates between FBm and FBA offers, and another for when there’s no buy box rotation.

• The strategy also includes a custom rule for rare cases when there are only FBm offers and no FBA offers at all.

• The individual explains that despite the availability of AI repricing rules, they opt for custom rules and find them sufficient for managing a monthly turnover of around $30,000.

• The video promises to send the exact repricing rules via email upon request.

Repricing Strategy Process

• The first step in the repricing process is to determine whether the offer is FBA or fbm, as different rules apply to each.

• For fbm listings, the initial consideration is whether the buy box is suppressed, as this affects the repricing rule to be used. If the buy box is suppressed, a specific rule called ‘FBA match buy box’ is used, which involves basic matching of the buy box price.

• If the buy box is not suppressed for fbm listings, other repricing rules are applied based on specific criteria and conditions outlined in the process flowchart.

• For FBA offers, the repricing process involves additional considerations and rules that go further down the line in the process, which are not detailed in this segment.

Key Points on FBM and FBA Strategies

• There are specific rules for cases where the buy box is suppressed or not when using Fulfillment by Merchant (FBM). If the buy box is suppressed, a different rule applies compared to when it is not suppressed.

• In the case of FBM with no buy box, the rule is to match the buy box and compete with other FBM offers to obtain the buy box. If the buy box is not suppressed, the same rule applies.

• The approach with FBM simplifies processes - if the buy box is not obtained, the product is either sent to Fulfillment by Amazon (FBA) or liquidated by reducing the price. This simplification is beneficial and eases decision-making.

• A good product sourcing strategy aims to minimize the occurrence of not obtaining the buy box with FBM, as it’s preferable to strategically designate which products will be listed as FBM or FBA to avoid this situation.

• For FBA offers, the initial focus is on whether the buy box rotates between Fulfilled by Others (FBO) and FBM offers. If this occurs, testing the ‘match buy box FBA’ rule is the next step.

• If the ‘match buy box FBA’ rule is successful in obtaining the buy box, the process is repeated, but if the buy box does not rotate, a different approach is taken.

• The straightforward process for managing FBA offers involves testing the ‘match buy box FBA’ rule, waiting for the outcome, and adjusting the strategy based on whether the buy box rotation occurs or not.

Optimizing Buy Box Performance

• Regularly monitor the performance of your listings to assess their sales potential. If a listing doesn’t sell after a week or two, consider reevaluating your strategy.

• When the buy box is not suppressed, a common rule to follow is the FBA (Fulfillment by Amazon) match buy box rule. This rule is applied to determine if your listing qualifies for the buy box.

• If your listing is not winning the buy box, check if other offers are fulfilled by merchants (FBM) instead of FBA. In some cases, being the only FBA offer with competing FBM prices can affect your buy box eligibility.

• In rare cases where your pricing is competitive and you still don’t win the buy box, it may indicate other factors influencing the buy box allocation, such as brand management companies or dominant sellers. In such instances, consider adjusting your strategy.

Liquidation Process and Repricing Rules

• When liquidating products, it’s not necessary to do it immediately; you can wait for three to four weeks before starting the process.

• To determine when to start liquidating, most people do it after 60 days, but the timing may vary depending on the situation.

• If your prices are not competitive, it can be the reason why you’re not getting the buy box, so it’s important to revise your minimum price.

• If the price is below your minimum, you have the option to wait for it to increase or adjust your pricing accordingly. This step is crucial as it ensures your prices remain competitive.

• Custom repricing rules can be effective for adjusting prices, and it’s important to regularly evaluate and update them to stay competitive in the market.

Conclusion

Mastering repricing strategies on Amazon FBA is essential for staying competitive and maximizing sales potential. By understanding the intricate rules, optimizing buy box performance, and implementing effective liquidation processes, sellers can achieve success in the dynamic marketplace.

undefined