Tag Archives: Amazon

Avoid Amazon Price Wars with the Game Theory Repricer: Seller Snap

Game theory turns repricing into a strategic battle, pitting you against your competitors to find a market equilibrium, not a race to the bottom

Repricing isn’t a new concept to marketplace sellers. Many sellers use automatic pricing tools, particularly on Amazon, to make sure that they are charging a competitive price and winning a share of the Buy Box.

But this isn’t without its drawbacks. Existing repricers, whether they are rules-based or algorithmic, are known for driving prices downwards. Why? Because they tend to treat repricing too simply, seeing it as an arms race, so instead of one seller with the best price “winning”, all prices are driven down and everybody loses.

Seller snap is a new tool on the market, that takes the innovative approach of applying mathematical game theory to the problem of Amazon marketplace repricing. This provides a way to treat pricing as a strategic game between players, with the goal of finding a balance or equilibrium, instead of a battle to the death with only one winner.

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Incentivized Reviews, Listing Restrictions and Cozying up to Brands

Review manipulation never really went away, listing blocks can be hard or soft, and Amazon is getting to be BFFs with brands. Whatever next?

This post is by Chris McCabe, a former Amazonian and founder of ecommerceChris.com. ecommerceChris shows Amazon sellers how to keep their accounts healthy, or, if the worst should happen, how to get their account back from a suspension.

The ban on incentivized reviews is over a year old, but the old adage on prohibition has held true: the practice hasn’t disappeared, it has just gone underground.

Amazon’s relationship with big brands has long been rocky, due to aggressive pricing and rampant fakes. But the times they are a changin’ as Amazon strikes a friendly deal with Nike. Who will be next?

HQ2 continues to make headlines, but while officials desperately bid for Amazon’s attention, are they leaving local small businesses out in the cold?

Meanwhile, “soft” listing blocks are common but not well understood. Do sellers ever need to do more than just edit and relist?

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Black Friday: Should I Follow the Sales Frenzy or Hold My Nerve?

Amazon want Keith to run Black Friday promotions. But will he benefit from taking part, or are Amazon just squeezing him to give lower prices?

Have a question for us? Send it to questions@webretailer.com. Readers’ Questions are in partnership with Emanaged and Online Seller Consulting.

Question

Hello,

I’ve been selling sports and fitness items online for five years through Amazon, eBay, Walmart and my own store.

For the last month, Amazon have been hounding me to set up big discounts on some of my products for Black Friday deals. They want me to knock my prices down by at least 20% for these deals, which is going to make my margins very low.

What I want to know is whether Black Friday deals are worth it. Am I likely to get a large increase in sales volume that means it will still be profitable? Will I get a knock-on effect after Black Friday because the increased sales will bump up my search rank? Or should I ignore it because the whole thing is just Amazon squeezing me to give lower prices?

– Keith T., Maryland

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Marketplaces Are Horrible, So Why Do We Sell On Them?

Every day marketplace sellers deal with returns abuse, unfair metrics, rude buyers and declining sales. Why do they put up with it?

Have a question for us? Send it to questions@webretailer.com. Readers’ Questions are in partnership with Emanaged and Online Seller Consulting.

Question

We have been selling smartphones, tablets and accessories on our website, eBay and Amazon for almost 3 years now. Our sales were very good last year but now they have almost halved. We are also opening our first outlet store in about a week’s time.

Let’s begin with eBay, where some buyers abuse loopholes in the money back guarantee to return damaged items which were delivered in full working order.

Now we come to Amazon which is an even bigger problem. We have four main issues:

  1. Other sellers on our listings keep changing the product details, meaning that the listing no longer matches our product. We only find out when buyers complain.
  2. Buyers are allowed to open A-Z claims up to 90 days after purchasing an item, but can also do it after 6 months and get a full refund!
  3. Amazon penalizes small sellers for a few invalid returns, negative feedback and A-Z claims when there are hundreds of other orders without any problem.
  4. Unlike eBay, buyers do not bother to leave feedback. The only time they will leave feedback is when they are angry.

What can we do to tackle the issues mentioned above and increase our sales on eBay and Amazon?

– Salma G., Surrey

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Amazon Inside Out: HQ2, Teens, Taxes, Bogus IP Claims and Australia

Chris McCabe casts a critical eye over Amazon stories that have been making headlines, from HQ2 to the much anticipated launch in Australia

This post is by Chris McCabe, a former Amazonian and founder of ecommerceChris.com. ecommerceChris shows Amazon sellers how to keep their accounts healthy, or, if the worst should happen, how to get their account back from a suspension.

Amazon has whipped officials across America into a frenzy as it invited invitations from cities wishing to be the home of Amazon’s new second HQ. How much will local officials hurt themselves to make long-shot bids?

The MTC has extended the deadline of their sales tax amnesty until November 1st, and the number of sellers being suspended for making bogus IP complaints is on the rise. What do both of these developments mean for sellers?

Meanwhile, over in Australia, the anticipation for Amazon’s new marketplace is building, as more than 500 Australian businesses have now signed up to sell on the marketplace when it launches next year.

And, will we be seeing an increase of teenagers shopping on Amazon, as they launch their new Amazon Teens service?

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