1、Winning with AI:New Repricing Strategies for Todays Amazon Seller2 FEEDVISORWinning with AI:The Benefits of Enhanced Repricing on AmazonIn the early days of the Amazon Marketplace,it was relatively easy for sellers to compete for and win the Buy Box.The market was less crowded,competition was less c

2、omplex,and the frequency of price changes was lower.As the marketplace evolved,Amazon developed a hyper-sophisticated,near real-time system that notifies sellers via an API on every intended price change,allowing sellers to respond intelligently and timely.This change resulted in an environment more

3、 dynamic and competitive than ever before,where sellers now utilize repricing technology to constantly respond to market changes.The Opportunity for AIThe heightened awareness and increased responsiveness of sellers to price fluctuations have forged an unprecedented opportunity for advanced AI syste

4、ms to comprehend how competitors react to such changes.Armed with this knowledge,these intelligent systems can strategically influence the market in a predetermined direction.Imagine a seller who wants to increase their profitmargin.Feedvisor saw this opportunity to leverage AI,engineering its advan

5、ced algorithmic repricer to be able to:1.Analyze the patterns of their competitors pricemoves.2.Learn that competitors tendencies.For example,Feedvisors AI can follow an increase or a price decrease,and gauge that the competitors typically alter their price within 15 or so minutes of the change.This

6、 knowledge enables the AI to execute autonomous price changes that will eventually trigger competitors to move their prices in the direction of the AIs choice while maintaining or increasing Buy Box share through hyper-fast price changes.These higher prices can lead to better profit margin,meeting t

7、he business objective of the seller.In another example,lets say that the Feedvisor AI detects a competitor that configured their repricer to raise the price periodically,wait for a specific time,and return to the original price.The AI can learn this pattern and leverage this knowledge by either reci

8、procating with a price increase if the objective is to increase profits or ignoring it if the aim is to focus on sales.This unique ability to learn and predict competitors moves enables Feedvisors customers to be in a position where they lead the market to comply with their own business strategy rat

9、her than blindly follow others moves.3 FEEDVISORWINNING WITH AI:THE BENEFITS OF ENHANCED REPRICING ON AMAZONBuy Box Competition and Consumer DemandMost merchants that compete for the Buy Box do not take consumer demand into consideration.They assume that the competition between sellers will always d

10、rive the market to the most competitive price.This might have been the case when the Amazon marketplace was less sophisticated and responsive and might still be the case today for the most popular and competitive products.However,highly responsive sellers obsessed with Buy Box share alone often rais

11、e prices in unison.For example,when one seller raises the price,another seller sees the opportunity to win the Buy Box at a higher price and reciprocates by raising the price as well and so forth.All this may result in a significant price hike in a very short period.A rapid price hike often leads to

12、 significantly softer consumer demand,and eventually,the very same Buy Box share will lead to much lower sales volume.In some cases,the drop in volume may exceed the increase in margin,resulting in the drop in the overall profit dollars.Buy Box Competition and Price WarsLike price increases,competit

13、ive price drops,known as price wars,can develop quickly.When one seller drops the price and wins the Buy Box,other sellers programmed to respond will lower the price even further,creating a vicious cycle of rapid price drops.At the same time,sellers and their prices are highly reactive,with little e

14、ffort in trying to change the dynamics.A result of such a cycle is a rapid drop in margin,which may exceed the gain in volume and result in lower profit dollars.Win on Amazon with advanced AI-Driven repricing: FEEDVISORWINNING WITH AI:THE BENEFITS OF ENHANCED REPRICING ON AMAZONA Unique Advantage:AI

15、-Driven Optimization Strategies for Buy Box SellersEvery seller has different goals,and every item in their catalog has unique goals and competitive dynamics.Precision is needed.Being an autonomous AI optimization system,Feedvisors platform can be tuned to meet sellers specific business goals.The re

16、pricer includes three objectives for sellers to instruct the AI,from which the system will autonomously execute optimization actions to achieve the objectives.Increase margin,maintain unit salesIncrease unit sales,maintain marginMaximize unit sales regardless of marginTHE FIRST BUSINESS OBJECTIVE:In

17、crease margin and maintain unit salesAllows sellers to optimize overall profit through margin increase.Feedvisors AI will execute a sequence of autonomous price changes,eventually leading the competition to raise prices.The Feedvisor AI will continuously monitor the demand as a function of price cha

18、nges.If it detects that the demand is inelastic and consumers keep buying at the higher price range,it will keep raising the price.However,if it detects that demand starts to drop,it will stop leading the market higher and direct it to the optimal price range from the demand perspective.While execut

19、ing this strategy,Feedvisors AI continuously monitors Buy Box share and competitive response.It does not allow for a drop in Buy Box share as it can learn if competitors do not reciprocate to the price increases.THE SECOND BUSINESS OBJECTIVE:Increase unit sales and maintain marginsAllows sellers to

20、achieve higher sales velocity by exploring lower price ranges.Under this strategy,Feedvisors AI will continuously search for opportunities to win more Buy Box by lowering the price without engaging in a price war.The moment Feedvisors AI detects that the price war has begun,either because of Feedvis

21、ors or competitive actions,it will immediately act to slow it down by raising the price and signal a consistent unwillingness to engage in the price war.This strategy is a great fit for a seller who wants to move their inventory faster but doesnt want to engage in price wars or see massive drops in

22、margin.Feedvisors AI will always analyze the impact of a price drop versus a decline in margin and will pursue price drops only if an increase in sales exceeds the decrease in margin.THE THIRD BUSINESS OBJECTIVE:Maximize unit sales regardless of marginAllows sellers to move inventory as fast as poss

23、ible without considering margin impact.Under this strategy,Feedvisors AI will not shy away from price wars.In addition to its objective to win the Buy Box,the AI will explore lower price ranges to determine price elasticity.If it detects that demand is elastic,it will act to determine the optimal pr

24、ice point where demand is maximized.Combining maximal demand and maximal Buy Box share allows the seller to maximize sales velocity.5 FEEDVISORWINNING WITH AI:THE BENEFITS OF ENHANCED REPRICING ON AMAZONPrime vs.Non-Prime Buy BoxUnlike before,Amazon now awards Buy Box differently to Prime and non-Pr

25、ime buyers.Prime offers are typically cheaper than non-Prime offers,and therefore,Prime users will normally see Prime offers in the Buy Box.Non-prime users,who pay extra for prime shipping,will often find non-prime offers more attractive,and Amazon will typically award Buy Box to such offers for non

26、-prime users.However,if the price of the Prime offer is low enough,Amazon may still decide to offer a non-Prime Buy Box to such a Prime offer.A similar logic works for a non-Prime offer that wants to compete for the Prime Buy Box.Feedvisor allows sellers the flexibility to either compete for the Buy

27、 Box in their own fulfillment channel or for both Prime and Non-Prime.In most cases,sellers want to compete in their own fulfillment channel:sellers that fulfill via FBA or seller-fulfilled Prime compete for Prime Buy Box,and sellers that fulfill FBM(non-prime)compete for non-Prime Buy Box.In some c

28、ases,it makes sense for sellers to compete for both Prime and non-Prime Buy Boxes.For example:If sellers want to move their inventory faster and are less margin-sensitiveWhen a seller detects that they own a high degree of Buy Box in their own fulfillment channel,but their sales volume declines.This

29、 can be caused by the relatively high demand for the product outside their fulfillment channel,which“eats your lunch”.In such cases,competing for both Prime and Non-Prime Buy Boxes makes a lot of sense.6 FEEDVISORWINNING WITH AI:THE BENEFITS OF ENHANCED REPRICING ON AMAZONNational vs.Regional Buy Bo

30、xesWith the evolution of Amazon FBA infrastructure and various 3PL solutions,delivery speed and cost now vary substantially between regions.It enables sellers to offer more attractive prices for their products regionally.As a result,depending on the consumers zip code,the offers in terms of price an

31、d speed can differ substantially.Amazon has responded to this trend by allowing different offers to win the Buy Box in different regions.From the sellers perspective,it means multiple concurrent Buy Box winners.A super-aggressive seller,however,can force only one winner of the Buy Box across all reg

32、ions.It would require more aggressive pricing and potentially compromise the margin,but it is a viable strategy for sellers looking to move their inventory or dominate the market aggressively.Feedvisor enables sellers to define their strategy regarding regionality.A seller can either aim for a highe

33、r profit margin while potentially losing the Buy Box in some regions or aim for aggressive market domination at the expense of the margin.Win on Amazon with advanced AI-Driven repricing: FEEDVISORWINNING WITH AI:THE BENEFITS OF ENHANCED REPRICING ON AMAZONInventory Management:A Bigger Focus for Merc

34、hants in 2024In 2023,Amazon achieved its quickest global delivery speeds for Prime members by prioritizing regional fulfillment centers,marking its fastest shipping speeds to date.Looking ahead to 2024,the e-commerce giant is determined to enhance its supply chain and inventory management throughout

35、 its marketplace.For instance,Amazon is rolling out a new low-inventory-level fee to encourage sellers to enhance their inventory management and speed up distribution within fulfillment centers.This fee is designed to tackle situations where sellers keep insufficient inventory compared to their unit

36、 sales,which can hinder Amazons ability to efficiently distribute products through the FBA network.This,in turn,affects delivery speed for customers and raises shipping costs for the company.New Inventory Health Reports Amazon has also recently upgraded its FBA(Fulfillment by Amazon)Inventory report

37、ing,introducing more dynamic,real-time data and additional metrics for sellers.This enhanced system now categorizes inventory with different states and provides insightful fee forecasts based on these states.Notable improvements include:Fresher Data:The data refresh rate has been increased to 1 day,

38、a significant improvement from the previous 10 days.Inventory Tagging:Items are now tagged with labels such as Healthy,Excess,Low Inventory,and Out of Stock,allowing sellers to quickly assess their stock status.Comprehensive Metrics:Numerous metrics have been incorporated to calculate the various in

39、ventory states mentioned above,providing sellers with a more comprehensive view of their stock performance.Fee Forecasting:The system now forecasts fees based on the inventory states and metrics,helping sellers anticipate costs more accurately.Recommendations:Sellers will benefit from a range of rec

40、ommendations,including replenishment suggestions,enabling them to optimize their inventory management strategies.These enhancements aim to empower merchants with valuable insights and tools for better decision-making and improved overall efficiency within the FBA system.Leverage inventory-aware repr

41、icing to mitigate fees: FEEDVISORWINNING WITH AI:THE BENEFITS OF ENHANCED REPRICING ON AMAZONFulfillment fees make up a substantial percentage of these costs;FBA fees make up to 35%of a typical sellers total fees.2 With this in mind,its more important than ever for sellers to protect their profits a

42、gainst inventory fees.Using this updated data,Amazon gains improved insights into inventory states,influencing both past and predicted fees.In light of these new capabilities,sellers need to swiftly adapt to safeguard their profits.Its crucial for sellers to accurately grasp the inventory status per

43、 SKU and take appropriate actions to mitigate fee-related risks.Failure to do so could lead to:Increased Fees:Amazons charges are directly linked to inventory states.For instance,excessive inventory or low stock levels can impact fees related to storage,fulfillment,and other services.Negative Buy Bo

44、x Visibility Impact:While current penalties like visibility restrictions or Buy Box(BB)ineligibility may not be in effect,theres a potential for Amazon to introduce such measures in the future.Amazon now takes 45 cents in fees out of every dollar of third-party sales at its marketplace.1*Projected f

45、or the full year based on the first two quarters.Referral FeesSeller Advertising FeesFulfillment(FBA)FeesOther FeesAmazons Revenue from Seller Feesin the U.S.by Type of Fee1 Prospect2 Marketplace Pulse3 Amazons Monopoly Tollbooth in 2023New Fees9 FEEDVISORWINNING WITH AI:THE BENEFITS OF ENHANCED REP

46、RICING ON AMAZONLeveraging Repricing Technology to Protect ProfitsTaking action based on Amazons new recommendations is akin to threading a needle.The ideal solution not only optimizes current fees but also safeguards against possible future penalties or restrictions that Amazon might impose on sell

47、ers who neglect proactive inventory management.Since moving inventory takes time and is often challenging to rectify,its essential to swiftly comprehend the inventory situation,identify necessary actions,and implement them in a timely manner to prevent incurring fines from Amazon fees.Sellers need a

48、 solution that can not only provide invaluable information about their inventory,but also turn this information into actionable strategies that impact how quickly products move off the shelves,ultimately influencing profitability and efficiency.In the wake of these new fees,sellers must grasp their

49、inventory status using Amazons metrics,allowing them to maintain a healthy inventory and steer clear of fees tied to excess or low stock.Feedvisor is evolving to not only assist sellers in pricing and Buy Box strategies but also to dynamically respond to changes in inventory states,automating action

50、s for optimal results.What sets Feedvisor apart is our ability to not just present this information analytically,as most vendors will do,but to empower sellers to take action based on it.Were not just providing insights;were enabling sellers to influence and optimize their inventory velocity-essenti

51、ally,how fast their products move.How do we do it?Feedvisors differentiation lies in its capacity to act on the data provided by Amazon.While other vendors may offer similar insights,very few can translate them into actionable strategies.Fedvisor,on the other hand,is building off of its ability to h

52、elp sellers with pricing strategies and profitability by integrating the inventory velocity dimension.10 FEEDVISORFinal ThoughtsThe Amazon Marketplace has evolved substantially over the last few years:it has become more competitive,dynamic,and sophisticated.To win in such an environment,sellers need

53、 a technological solution that can help them better analyze the market,predict competition,and be able to lead the market to comply with their business strategy.Adaptation is the key to survival.Proactive inventory management is a strategic imperative for online sellers looking to thrive in an envir

54、onment where fulfillment fees continue to increase.By integrating a dynamic pricing system that considers the interconnected web of e-marketplaces and inventory levels,sellers can position themselves as leaders in the online retail arena.The time to embrace the future is now,and it begins with the a

55、doption of advanced repricing technology.Feedvisors AI can learn the competitors behavior and predict their response;it is the only solution capable of directing market moves per seller-defined business strategy,delivering revenue and profit increases and overall business growth.See the power of AI-

56、based repricing,free for 14 days.Drive Demand and Sales with AI-Powered,Inventory-Aware Repricing and Advertising Optimization,Starting at$100 a MonthThe Top AI-Powered RepricerHarness the power of the most advanced AI technology to gain a competitive advantage and optimize your pricing strategies.M

57、aximize Campaign Performance Leverage impactful advertising optimization,driving keyword harvesting and campaign optimization.Data-Driven Insights Make informed decisions with access to real-time market data and performance analytics.64%increase in revenue 40%increase sales51%improvement in sales ra

58、nkOur clients see results:Start your 14-day free trial: have used Feedvisor for almost 5 years now.I can clearly say that we would not be as successful as we are on Amazon without Feedvisor.We have been able to reliably grow our sales year over year and stay competitive without increasing our invent

59、ory liability,thanks to the reporting and repricing feature in Feedvisor.-Steven L.,E-Commerce Specialist“REPRICING OPTIMIZATION|ADVERTISING OPTIMIZATION|POWERFUL ANALYTICSExperience the power of Feedvisor with:Increased Profitability Maximize profit margins by automating pricing strategies and iden

60、tifying revenue opportunities.Pre-Built Optimization Strategies Customize your repricing strategy to your unique business needs with an array of profit to revenue-oriented strategies.Optimize Inventory ManagementManage your inventory levels to steer clear of fulfillment fees with intelligent,inventory-aware repricing.Try Us Free Today