Dynamically Discount Products to Get into the Buybox
On Amazon, a dynamic price auction occurs across all products with multiple sellers. Who wins the Buybox depends on many factors, with the most important being the price. Our application can automatically adjust your selling price to ensure products sell while maintaining the highest possible price.
ℹ️ This is a case study with a client who uses the EXPANDO APP feature called Autopricer to dynamically adjust their selling prices in response to the competition.
How does it work?
The client sets up in our application how much we can lower product prices (provided in the feed) to get into the Buybox. This can be done either in bulk across the product overview or individually for each product.
What Can It Achieve?
Our client in the automotive accessories sector increased their presence in the Buybox by 21% through dynamic price reductions, which resulted in a 23% increase in revenue for March 2020. This was achieved with an average discount of 3.6%, where a total of 294 orders were discounted out of 632.
The red represents the revenue you're leaving to the competition.
What’s the Difference Compared to Amazon Pricing Tool?
With all due respect to Amazon’s tool, its goal is to sell as much as possible at the lowest price. Our approach ensures that price reductions don’t have to be so drastic, and when a competitor drops out, the price can quickly go back up. Amazon Pricing is used by everyone, which can lead to a discount spiral—our software takes a different approach.
ℹ️ The EXPANDO APP can also dynamically increase prices to generate more margin, and most clients combine both functions.