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

By Alex Knight

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

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

Game theory provides a nice buzzword but in the current environment I do not see this providing any advantage over other repricers. Game theory relies on rational behavior of participants. The other players in Amazon’s BuyBox war are not playing a rational game. They do not follow the same rules. Additionally, the rules for obtaining the BuyBox (from what we can tell) rely on downward price pressure. The optimum price for any seller is along a demand curve at various prices against competition, setting a profitable floor price and the letting it increase incrementally to the optimal price (without competitive… Read more »

Eli Engelberg

Replying to Jack Phillips

Dear Jack, My name is Eli Engelberg and I am one of the Co-founders of Seller snap. I agree with you that Game Theory is a buzzword in so far as the idea of Game Theory Repricing is not an academic paper or a new economic theory. The intent was to use a well-known concept to explain how we tackle the challenge or repricing competitive products on Amazon. We believe that Amazon sellers ARE rational as far as their ultimate business goal which is to make more money. In Game Theory, a non-cooperative game involves two or more players in which… Read more »

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