How do we compete with competitors who are using an automated one-penny price drop strategy on featured offers? This tactic makes winning the Buy Box a real challenge.
I’m looking for solutions to handle this situation, any advice would be appreciated!
Thank you!
You can still get sales if you don’t reduce penny by penny. Wait for sometime if your sales ceases then drop a little.
You need a repricer that can do the same and will yoyo.
My repricer will bounce up and down by cents and try to raise prices when it can.
If you are using the Amazon repricer you are cooked.
But competitors are using the same automated repricing. If we use the same, they keep decreasing by 1 penny each time and end up getting the Buy Box.
Frequently, if there are many sellers sharing the same listing, they will match each other’s price. Once this happens the Buy Box will start getting switched so that everyone gets sales.
When someone is greedy, they will keep dropping their price, the listing tanks and a war starts. This is what people who do arbitrage are saying. But I am doing private label, which means that I don’t have competitors.