Why Amazon Repricing makes sense for private label products

You've probably already heard of the business model.”private label“heard, but what about the price adjustment for private brands?

What was rather unknown among Amazon sellers a few years ago is now known to almost all retailers on Amazon. And from the looks of it, selling Amazon private label products has only just begun.

The rise of private label Retailers on Amazon were born out of the desire to set themselves apart from the ever-increasing number of other third-party providers. Many Amazon deal sites are flooded with a wide variety of offers, which can be overwhelming for a buyer.

For many retailers, the private label business offers a welcome source of income in addition to selling merchandise.

So what is the solution? You offer items under your own brand name, have your own detail page and can design your offers as you see fit.

However, there are some common misconceptions among traders, which often result in the hoped-for results not being achieved. In particular, the general belief that private label products do not have to be automatically repriced.

Let's take a closer look at why this typical private label retailer costs sales and profits on Amazon; we'll also look at a few ideas on how you can get better results for your business and your bottom line.

“I don't have to reprice my own brand products, they have no competition!”

If you sell private label products, you've most likely either said this statement yourself or heard it from someone else. But is this statement true?

Many sellers of private brands agree with this statement because who doesn't want to have to adjust the price of their products anymore.

However, as a retailer, you should know best: It is virtually impossible that you are the only supplier of an item on Amazon.

If you haven't just found a niche for yourself, in many cases the item you have branded is already being offered by other sellers under a different brand.

Even though you're the only seller in your listing, a buyer looking for the item you're selling is likely to see lots of other offers from other retailer brand and brand sellers.

For example, do a search on Amazon for “LadekabeliPhone.” You'll see that there are lots of offers from different sellers; some sellers are private brands, others are brand manufacturers (such as Apple) who all sell essentially the same product with different brands and packaging.

The crux of the matter is that you eliminate direct competitors from Amazon offers, but not the competing offers for similar products. This situation is the reason why the idea of “own-brand products have no competition” is a myth and will remain so.

And as with offers with multiple direct competitors, if you ignore these indirect competitor prices, you lose sales or, in many cases, leave money behind because competitor offers have risen in price or sold out.

If you remove the Buy Box from the equation by creating catalog pages where you alone exist, you'll need to find other ways to increase sales. A good start is to make sure that your prices match the current competitive situation for similar products.

If you offer a private label product at a fixed price with a specific profit margin and then ignore the product or price optimization, chances are good that other private label providers who offer similar items will ensure that your product is priced below yours.

In this situation, the priority should be to capture buyers who are looking for the lowest price. When this buyer searches for the desired item, they will most likely buy the product with the lowest price when they see many different products that are essentially the same.

Through the Private label repricing of Metaprice You can prevent this problem and compare yourself with up to 10 competitor ASINS and their BuyBox prices.

You tell our system which ASINs it should compare with and define an upper and lower price limit, the rest is done automatically by the system 24 hours a day.

This strategy will ensure that:

Your price remains competitive over the long term.

You may even be the cheapest offer, which is the key to more private label sales. In most cases, buyers opt for the lowest price in a group-like item.

Repricing of private brands: An absolute need and a must!

The aim here is to maximize profit, optimize sales speed and remain competitive among the wide range of similar offerings from other private label sellers.

These are all important prerequisites for a successful private label business.

We are always available for inquiries about e-commerce

by e-mail at: support@metaprice.de

via WhatsApp at: 0178 1195990

by telephone at: +49 214 33010250

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