Will Tjernlund, Greg Mercer and Bernie Thompson talk about private label pricing, from costs and competitors to products and positioning
There is a common misconception about private labeling on Amazon that simply taking a generic product and slapping a logo on it is a recipe for success. In most cases, there are other factors that play a key part.
One of these is price. Unlike wholesale or reselling models, where a manufacturer will often provide you with a retail price, and there are usually many competitors selling the same product, there are no such guidelines with private labeling – the price is totally down to you.
This can be daunting, as not only do you have to analyze market pricing, and decide on your initial place within it, but you also need a strategy for altering your price to react to market changes and your competitors.
To shed some light on this topic, I spoke to three private label experts – Will Tjernlund, Greg Mercer and Bernie Thompson – to get their advice on how to price private label products.
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.
This post is by Todd Ryan, a Florida-based IT manager who has been selling online since 1999. He currently concentrates on the Amazon marketplace, growing 100% year-on-year and employing three people in the business. Todd uses a range of applications, including automated repricing software since 2012. He has tested more than a dozen repricers in the sub-$500 per month range including RepriceIt, Appeagle, Sellery, ChannelMAX and BQool, and regularly advises other sellers on repricing.
For an up-to-date list of repricers, with reviews, see the repricing category in the Web Retailer directory.
On the Amazon Marketplace, the Buy Box reigns supreme. Almost all sales go to the seller who is “in the Buy Box”. Few buyers even realize that they can choose to buy from another merchant, because it’s an integral part of the experience to trust that Amazon has already found the best offer for you.
So as a seller, you really need to “win” the Buy Box to make sales, and one of the most important factors in deciding who wins is price. For better or worse, price also happens to be a factor that you, as a seller, have complete control over. By regularly adjusting prices you can potentially make a huge difference to your sales.
It’s quite common now for Amazon sellers to use automated pricing tools, and dozens of repricers have sprung up in recent years to meet that need. Most repricing tools use preset rules and algorithms to frequently adjust prices.
However, there are still many sellers who are wary of repricers, for a variety of reasons – some of which are way off the mark! In this post, I will tackle the most common myths I hear about repricing. I’ll try to pick apart the reality from the myth, and address the biggest concerns which sellers often have.
This post is by Lahav Gan, CEO at CampaignGo. CampaignGo develops tools to increase eBay stores’ traffic and boost revenues while saving substantial time and money. Their flagship tool is the Markdown Guru that provides deep store insights and lets you create eBay sales easily and quickly.
It’s no secret that buyers LOVE sales. They are drawn to good bargains and are always looking to pay the lowest price they can get.
For sellers though, creating markdowns and sales promotions can be a difficult and time-consuming process. It’s challenging to select which items to put on sale, set up the discounts for each, and track the results to know if it even paid off. Unfortunately that means many sellers don’t even try to reach the full potential of using promotions to boost their eBay store revenue.
At CampaignGO, we have been eBay Sellers for the past decade, having two successful eBay stores, with over 10,000 listed items, 15,000 positive feedbacks and thousands of satisfied customers. So we know what works!
By reading this guide you will learn how to create markdowns with ease and in less time. We will explain why markdowns are beneficial to your eBay business, present various markdown options and strategies, and provide helpful rules and tips for markdown creation in the easiest and fastest way possible.
The key to success on Amazon’s Marketplace is simple: you need to win the Buy Box.
But there’s only space for one seller in the Buy Box. And that’s decided by a complex algorithm, running constantly behind the scenes. All the other sellers competing on that particular product are much less obvious to the buyer.
There are many factors used in the Buy Box algorithm, but one is crucial: price. Not only does price have the strongest weighting, but it’s also the only Buy Box factor that sellers can change easily and immediately.
So finding the right price to win the Buy Box, without going lower than necessary, is absolutely vital to a successful business. That’s where automated repricing software comes in. Repricers have been around for a while, but in the last few years the industry has exploded. There are now dozens of repricing tools and, for many of them, it’s hard to see how they’re different to the rest.
But one that has always stood out to me, since their launch in 2011, is Feedvisor. This company has always gone against the grain. While other repricers tout the benefits of dozens of configuration options, Feedvisor boasts that it has none at all. Other repricers compete with low subscription fees, but with Feedvisor the fees start high and add on a percentage of sales.
Yet Feedvisor is successful, growing 200% in just the last year. The company now has almost 1,000 customers, who sell a total of $1 billion of products through the Amazon marketplace. On their behalf, Feedvisor makes 75 million pricing decisions daily. And their reputation is outstanding, with a five-star average rating in the Web Retailer directory.