Andy Geldman explains how to set competitive prices while minimizing effort and maximizing profit.
This posted was originally published in January 2014 and updated in June 2017.
For sellers who only have a few product lines in an uncompetitive niche, monitoring the pricing of competitors is easy – they can simply update their prices manually. This is a great position to be in, but it is not the reality for most sellers. The majority need many SKUs to be successful and often face stiff competition. These sellers need to automate repricing in order to survive.
Despite this, a number of sellers are concerned about using marketplace repricing software as they see automatic repricing as a “race to the bottom”. This is a logical argument, but not necessarily correct as repricing is about more than simply having the lowest price.
So in this post, I will demystify repricing software: what it is, how it works, the differences between repricing on eBay and Amazon and, ultimately, how to choose the right tool for you.
The company behind free eBay title optimization tool Title Builder has analyzed one million eBay listings to find out which factors make the most difference to sales.
They looked at:
- Title length in words and characters
- The use of keywords in titles
- The use of acronyms like “NWT” (new with tags)
- Using item specifics as title keywords
- Using brand names in titles
Read on for the infographic or see Title Builder’s original post for the most in-depth information and examples.
Marketplaces are hyper-competitive and ultra-demanding. Is it time to protect your business by building your own independent brand?
There’s no question that marketplaces like Amazon and eBay are powerful sales machines. Offer the right products at the right price, while keeping your service levels high, and the orders will roll in.
But competition is always fierce. Buyers don’t know who you are, so they will trust the marketplace to guide them to the best seller each time they make a purchase. That usually means whoever happens to be the cheapest. The marketplaces don’t play favorites.
Nor do they look after you. If you falter and stumble, they don’t pick you up and dust you down – they kick you out. It doesn’t take many complaints from their customers – the buyers – for you to become persona non grata.
What’s an online seller to do? How can you rise above the endless mass of competing sellers, all fighting to reach the top? The only way is to strike out on your own. Build a real, recognizable brand. Sell through your own online store. Build your own social media following. Unlike your marketplace selling accounts, those things really belong to you. They can’t be taken away easily, and they are a powerful asset to build your business on.
In this post I’ll walk you through the Online Stores & Social Media category of the Web Retailer directory. It covers store platforms, tools for creating Facebook stores, tools for feeding existing listings through to social networks, and connector apps between marketplaces and store platforms.
Software and services for efficient order processing, economical shipping, warehouse management, and third-party logistics
A successful ecommerce business has a lot to do: research the market, source products, list onto marketplaces and so on – all before getting a single customer order.
When the orders do start coming in, you get the satisfying buzz of making a sale and all that effort finally seems worthwhile. You just have to send the orders out the door. Should be simple, right? Print off the details, pick the items, pack the boxes, add packing slips, stick on shipping labels, arrange for a pick-up (or drop them off)… and now it doesn’t seem so simple after all.
Many sellers quickly go from waiting for their next sale with a feeling of excitement, to waiting with a feeling of fear. Will they have enough stock? Will they apply the right labels to the right boxes? Will they even be able to ship on time?
So that’s the bad news: shipping is a messy, complex, demanding process. It can be a huge challenge, and has been the downfall of many sellers. The good news? It’s a challenge that businesses have faced before, and there are plenty of solutions out there for making it easier, faster, cheaper and more accurate.
In this post I’ll walk you through the Shipping & Fulfillment category of the Web Retailer directory. It covers order management, shipping automation, fulfillment outsourcing (third-party logistics), shipping consolidators, dropship automation and warehouse management.
From a tiny cube office in Manhattan to exclusive deals with huge brands, this company has come a long way
Quantum Networks has achieved a huge amount since they launched their ecommerce business in 2010.
The company, which started out selling niche electronics like cell phone signal boosters, has featured multiple times in the Inc. 500 list of the fastest-growing companies in the U.S., reaching $23 million in sales in 2013. They’ve continued to grow since then, selling on five global marketplaces while maintaining a 99% feedback average and shipping 14,000 orders per month.
Which business model have they followed to grow to that size? Well, most of them! Reselling, drop shipping, exclusive brand relationships, managed services, private labeling – they aren’t wedded to any one way of selling online.
But if there is one key to the way Quantum does ecommerce, it’s their focus on finding great brands to work with. They aren’t flipping quick deals or throwing out me-too private label products, Quantum is building long-term relationships with innovative, high-quality manufacturers. They now work with over 200 brands, and the emphasis on quality shows in an average order value of $157.
I caught up with Quantum Networks’ Co-Founder and COO Eytan Wiener, to find out more about this impressive company. He was very open about the business, and generous with his advice for new sellers.