Guidelines of Pricing
Pricing limit – The people who are the owner of their Individual Seller Account are limited to the amount of $10,000 that they can list their item. This limitation is not applied to the holders of a Professional Seller Account and people who are registered under the category of Collectible Books.
Fair price – There should be fair pricing of every product so that the customers are willing to buy those products. The pricing of the product should be set by looking at a rival’s product too, like the price of the product should be less than or equal to the products which are being sold through other sites or channels.
Setting the item’s price
Several things should be taken into deliberation and should be kept in mind of the seller. They are:
Handling costs – Any type of handling costs or the time required for processing the product should be calculated by the seller itself. All these should get comprehended within the price of the product.
The process of undercutting the rivals is known as ‘repricing’. Generally, the sellers who want to make their place in the top position of the market choose this process where they undercut their rivals by $00.01. The repricing can be done through:
Repricing tools – There are various repricing tools like Xsellco, Repricelt, and RepricerExpress used to undercut the rivals automatically. With the help of repricing tools, a minimum price can be set by the seller so that the system does not go below the profitability level.
There are two methods by which the repricing tools work. They are:
Algorithm repricing – The algorithm-based tools are used by weighing several metrics to determine the perfect price of your product. These tools are expensive and are suitable for professional sellers.
Rule-based repricing – A seller sets the rules in which these tools work. They are a little time-consuming too.
Manual Repricing – With this method, you can clearly understand the strategy of a rival’s product and pricing of your own. By Manual Repricing, you can undercut yourself. It is a time-consuming process and is eligible for a few products.
What is Dynamic Pricing?
When the price of a product fluctuates based on Contemporary market conditions, it is known as Dynamic Pricing. Dynamic Pricing can be defined as the changes of pricing like, when a buyer searches for any product in the morning then he will see the different price of the same product in the evening. Dynamic Planning is beneficial for the seller as the seller can maximize their profits by adjusting the prices.
