Do You Need an Automated Repricer for Private Label SKUs on Amazon?
Written by Ash, Published by Hani
Private Labelling
These are the brands that are legally owned by a supplier or a retailer. The suppliers and retailers need not produce the goods themselves but outsource them to a manufacturer under their private label. As a result, the manufacturing company has no legal rights over the brand or its products. However, they rightfully receive a share of the revenue from the sale of the product.
Private Labelling
These are the brands that are legally owned by a supplier or a retailer. The suppliers and retailers need not produce the goods themselves but outsource them to a manufacturer under their private label. As a result, the manufacturing company has no legal rights over the brand or its products. However, they rightfully receive a share of the revenue from the sale of the product.
How to private label products?
It would be a tedious task to create an ecommerce website to sell products from your private label inventory. Hence, it could be a comparatively easier option to create one on Amazon and sell. In brief, the steps to go about the same include:
It would be a tedious task to create an ecommerce website to sell products from your private label inventory. Hence, it could be a comparatively easier option to create one on Amazon and sell. In brief, the steps to go about the same include:
(a) Identify a suitable product or a product niche for your private label
(b) Search for a supplier or a manufacturer who produces the product
(c) Design a logo for your brand, finalize packaging and product design
(d) List the products on the website
(e) Sign up for Fulfillment by Amazon (FBA)
(f) Start selling products from your private label
(b) Search for a supplier or a manufacturer who produces the product
(c) Design a logo for your brand, finalize packaging and product design
(d) List the products on the website
(e) Sign up for Fulfillment by Amazon (FBA)
(f) Start selling products from your private label
Also Read: Why Do You Need An Automated Repricer On Amazon?
Do You Need an Automated Repricer for These Private Label Products as They Have No Competition?
Many private label sellers wonder why they should use an automated repricer when they sell their own brand and do not have a competitor. This question can be answered by understanding the difference between direct and indirect competition on Amazon. While you may be the only seller on your specific listing, a buyer searching for the item you are selling is likely to see many other offers from other private label sellers when they conduct their search.
For example, if you search on Amazon for "iPhone 15 Case", you will see that there are many listings from various sellers; some sellers are private label, and others are name brands (e.g., Apple) all selling essentially the same product with different branding and packaging.
The point here is that while you may be avoiding direct Amazon listing competitors, you are not eliminating competing offers for similar products. This situation is the reason why the idea that "private label products do not have competition" is a myth. And, like listings with multiple direct competitors, if you ignore these indirect competitor prices, you are likely missing out on sales and leaving money on the table in many cases.If you create catalog pages that only you exist on, you will need to find other ways to drive sales. One of the ways is to ensure that your prices are aligned with the current competitive landscape for similar products.
If you list a private label product at a fixed price with a predetermined profit margin and move on, the possibilities are high that other private label sellers offering similar items will make sure their product is priced lower than yours. Attracting those buyers who are looking for the lowest price or best value should be a priority in this situation. When that buyer searches for the item they want to buy, they are most likely to purchase the product that is priced the lowest when they see many different products that are essentially the same (except for the brand).
If your own listing is not within a competitive range, you will see the negative results in sales. Therefore, it is important to use an automated repricer to adjust your prices to be competitive.
Also Read: Common Reasons For Amazon Seller Account Suspension or Deactivation
Also Read: Common Reasons For Amazon Seller Account Suspension or Deactivation
Automated Repricing Strategies For Private Label Listings
a) Repricing Related ASINs
With this feature, you will be competing with the listings that are similar to yours, but from different brands. You need to research on Amazon what other listings are available for the buyers that are related to your products by using appropriate keywords. Then, set up a repricer strategy to target those competitor ASINs and adjust your prices accordingly on a regular basis. This will help the potential buyers see your listing priced competitively on Amazon.
b) Sales Velocity Strategy
A Private Label repricer that enables you to set a criteria for sales velocity thresholds is another way to reprice your private label SKUs. The automated repricer program would steadily raise your pricing until your sales velocity dips below the lower threshold figures or you achieve the highest profit margin with higher pricing.
Using an automated repricer like ChannelMAX, it will constantly monitor all of your listings and, once they meet the sales velocity threshold you defined, it should promptly raise pricing for high-demand products. Low-demand products can also benefit from the same strategy. For example, if you have less than one sale per week(or days specified), you may slowly lower your pricing (while staying above your minimum price) until you find a price point that attracts buyers. This way you are keeping your offerings competitive and moving with other sellers.
In a nutshell, I would say that using a repricer for your own brands too is a must. You may try ChannelMAX Repricer strategies mentioned above to achieve the desired results. It is all about maximizing your prices, increasing buy box, increasing the sales and being competitive with other private label offers. I believe all of these together should help a successful private label selling.
Disclaimer:
Amazon is the registered trademark of the e-commerce brand.
About ChannelMAX.NET :
Amazon is the registered trademark of the e-commerce brand.
About ChannelMAX.NET :
ChannnelMAX.NET has been helping sellers on various eCommerce platforms since 2005. Some of the eCommerce platforms supported by ChannelMAX.NET are Amazon, Walmart, eBay and Shopify. ChannelMAX.NET has been an Amazon technology partner since 2007. Some of its key offerings include its pricing management tool, the ChannelMAX Repricer, FBA Refunds Management offering, RefundMAX, and ChannelMAX Remote Full-Time eCom Assistants to help its seller partners run their business. The ChannelMAX Repricer is available at the Amazon Appstore.