What are the reasons to resist using a repricing software?

Poster
Message
Supplier
London United Kingdom
Nick Tikhomirov
Kudos: 48
Joined: Jan 17, 2017
What are the reasons to resist using a repricing software?
30 Jan 2017
Well, let’s take a look at some retailers’ given reasons to be apprehensive about repricing software (I will try to show how these fears are neutralized by solutions with Competera):

Fear #1: We will do it better in-house, since we do it for ourselves.
Repricing software has 3rd party expertise in online retail data scraping. Successful pricing frameworks run through multiple online retailers, which has achieved a concentration of monthly costs for budget planning.

Fear #2: We are afraid of integration.
Most of the advanced competitive pricing solutions out there assist with integration, and have a ready-to-connect API for output data and pull back XMLs with any data set for input data.

Fear #3: We will control over-competitive pricing internally.
All you need to do is simply transfer commitment and responsibility for this business process to a third party. Signing up with them, you can always refer to a service agreement and additional guarantees.

Fear #4: It’s easy to write web scrapers. We will just hire a few programmers or outsource for them.
It’s quite a complex HR or product management task to find people or even teams with a certain ecommerce data scraping experience. Moreover, competitive pricing framework requires thorough tech support, which pushes you into a long-term commitment with those IT folks who developed your competitive pricing suite. They are highly unlikely commit to support it. Even if they commit, you can correctly imagine that the costs would be pretty brutal.

Fear #5: Our developers will take care of it.
Developers’ time is precious, and they are most likely not going to be happy with yet another project assigned to them. Add hoards of product managers hovering over them with request after request to explain how it works, and having to address some tech issue or fix the data, and you have a grumpy IT department.

You can read more about Reasons to hire a Repricing Software
written by Competera.

[Last edited: 31 Jan 2017]
Nottingham United Kingdom
Bigian13
Kudos: 3,095
Joined: Feb 21, 2014
Re: What are the reasons to resist using a repricing softwar
1 Feb 2017
Okay, lets look at the real reasons that people resist using repricing software. These are my own personal fears, kind of.

Fear #1 It is a race to the bottom. Many sellers fear that repricing software will do nothing more than get them to the lowest price that they can afford (or even lower) with no real reward. Repricing rules can increase sales and profitability when applied correctly.

Fear #2 They feel that there is nothing they can do that can take the Holy Grail of the Buy Box away from Amazon. Amazon do not get the 'Buy Box' all the time. Availability, delivery and price (among other factors) all affect who has it.

Fear #3 Repricing software will not help me. The only people that I have found this true of is those that have their own individual brand registered and trademarked items where they are the only seller and are very happy with the profit margin.

Fear #4 People that make posts promoting their own products or services without declaring themselves as a 'supplier' should not be trusted.

Fear #5 People that get others from their own company to like their posts should not be trusted. (See also Fear #4 above)

Fear #6 People that do not display prices on their website.

Nuff said.
E-commerce , love it or hate it, that's why we are here
Herts, England - Not specified -
Andy
Kudos: 12,387
Joined: Jan 1, 2001
Re: What are the reasons to resist using a repricing softwar
1 Feb 2017

Bigian13 wrote:

Fear #4 People that make posts promoting their own products or services without declaring themselves as a 'supplier' should not be trusted.
To be fair, they can't add the "official" supplier tag themselves unless they are using their main supplier login. This has now been done at our end. They can add a signature however, which would have made it clearer. That's what we recommend in our Posting Rules:

www.webretailer.com/forum/174-posting-rules.asp
Andy Geldman, Web Retailer
Please follow on Twitter, Facebook, LinkedIn or Google+
Supplier
London United Kingdom
Nick Tikhomirov
Kudos: 48
Joined: Jan 17, 2017
Re: What are the reasons to resist using a repricing softwar
3 Feb 2017
I love eCommerce, that’s why I am here

#1 I do appreciate your involvement, Bigian13. Indeed, there is no solution that fully takes responsibility for pricing decisions and guarantees a life-long BB monopoly unless you pay them tons of money, or it’s just a scam. My point is that along with a pricing suite, we share our repricing expertise. It’s like you continuously chat with multiple sellers who offer some tricks what worked in their experience. Anyway, the final decision is yours and it’s up to you adapt it the way it is not going to fall below your margin. We’re here to help and save you some time.

The fastest way to run your pricing into the ground is to be guided by the rule “change the price following the lowest competitor”. The repricing must be smart. Besides that, we can base it not only on the price, but also on stock availability, promotions of competitors, margins etc. For example, if the competitor don’t have a certain product in stock, we raise the price by X%, or we can set the barriers of margin and the repricing changes the prices within the framework. If you need to change the framework, the repricing will notify you.

#2 Given that attributes which influence getting into the BB are available, we have enough resources to preset rules and continuously change them with a view to a pricing strategy. No need to take away this BB from anyone, it is more like the matter of getting it but not pursuing Amazon.

#3 Repricing software will not help in paying the electricity bills though. What if one moves a bit from a monthly budget into it and utilizes it towards a specific goal, not setting the best prices on Amazon but have a thoughtful suggestions built by himself and those guys. The repricing is an acceleration of ongoing work. Still, if you change the prices simply following a competitor, you don’t need repricing. The challenge is to change 100 prices per day - to find every product at a competitor’s store, take the price, and check the availability of products,calculate a new price, and set it in a storefront.To do this you need to spend about 3 hours a day, and repricing do it every 5 minutes.

#4 I do not hide the fact that that I work for Competera. You can see this in my profile. It’s very important to obtain information from the audience, which we will be glad to cooperate and know how to help. At the moment, we make a profound research of concerns and pains faced by retailers. And yes, every feedback (including yours) helps us improve our solution. Regarding the tag Supplier, I am sorry, it is really my mistake (unintentional). Thank you, Andy, for the link on Posting Rules - in the future I will certainly have them in mind while generating content.

#5 In this case, I have to disagree with you, our team is actively using Web Retailer to generate insights and gather information. I'm grateful that my colleagues support this content, as well as other content.

#6 Pricing of the solutions for retailers is really unavailable on the site at the moment. First and foremost, the reason is the calculation of the effectiveness of implementation for each customer’s case. Everyone who left the application and provided the needed information for the calculation of the efficiency receives a detailed proposal with a detailed and transparent calculation throughout the 1st day.

StoreFeeder
xSellco 1
SellerCloud
plentymarkets