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How to Integrate Repricing into Your Amazon Growth Pipeline

Many sellers pick up the fundamentals of one of the selling models, such selling wholesale or engaging in online arbitrage or retail, quit...

Amazon Growth

Many sellers pick up the fundamentals of one of the selling models, such selling wholesale or engaging in online arbitrage or retail, quite quickly. A common problem for many is scaling their business.


This post will explain what a growth stack is, how to apply repricing inside that model, and the systems mindset you should have in order to consistently improve sales month over month.


Taking a systems approach

Two books drastically altered my perspective on my company. Sam Carpenter, "The E-Myth Revisited and Work The System" They both impart the same idea, though I think Work The System is more applicable: your company is a collection of processes that you can adjust to get the outcomes you want.


Do you want to raise your net profit per unit on average? Adjust your pricing and sourcing procedures.


Would you like to manage the whole company from any location using a laptop? Adjust your physical systems, such as getting ready.


By the time you finish both volumes, you will have a clear understanding of the three main functional domains of any Amazon company: sales, operations, and sourcing.


The term "sourcing" is rather self-explanatory; it refers to the process of selecting suppliers for your inventory, determining whether it will be profitable to buy, and other critical business decisions.


A number of systems, including those that are used for inventory preparation, tracking of goods coming in and going out, hiring new staff, and tax management, can make operations a little more complicated.


Sales, however, is a rather simple process. The goal is to increase sales and profitability each and every month.


Sales and sourcing have the most potential for automation of the three main sectors; these tasks can occasionally be managed totally by software and automated rules.


Applying leverage when it's feasible

You have to do something with this newfound understanding as soon as you start to view your company as a collection of systems. That's the situation when leverage is useful.


Making one plus one equal more than two is the idea of leverage. It's critical to realize that leverage has practically endless applications. Leverage is not a fixed resource where our time is. This is where our success is measured, not by the number of hours worked but by the results produced.


A few potential sources of leverage are as follows:


People: Hiring the right people can have a big impact on achieving your objectives.

Systems: create once, utilize always!

Technology: start utilizing software, which we cover in more detail in the post that follows.

Rule-based decision-making: make a judgment once and use it repeatedly to prevent decision fatigue

Elimination: getting rid of stuff that isn't essential or valuable

Learning can save you a lot of time. It only takes a little effort to become more efficient or to use a product better.


Now that you have your systems in front of you, you can start thinking critically about what kind of leverage I should be using on each system.


For instance, you can have a lot of trouble finding profitable merchandise. Maybe you should concentrate on improving your skills.


On the other hand, you can be an expert at finding products, but you have trouble allocating enough time to the work. In this situation, you should start employing rules to expedite your decision-making, minimize duties to free up more time, and consider hiring someone to source for you.


Upon completion, you will have a list of items that require improvement along with a menu of choices for each item. Say goodbye to being indecisive and wondering what to do next or what's preventing you from hitting your sales targets for the year.


It's all about carrying out that map after that.

Assembling your growth stack

For a moment, I'm going to borrow a tech term from the startup industry and apply it to Amazon. All that a "stack" is is a grouping of items, which could include rules, frameworks, systems, tools, etc.


A stack is a word used by the supplement industry to refer to a collection of supplements that complement one another nicely.


A group of technologies or tools is referred to as a "stack" in the startup industry; examples include a tech stack, marketing stack, customer service stack, etc.


I believe it makes sense to think about your Amazon business using this word for our purposes. Which sourcing stack do you use? Do you source your Online Arbitrage inventory using techniques such as Tactical Arbitrage?


How is your stack for operations? Do you write SOPs in a program like Notion to record your various processes? Do you outsource all of your prep work to a prep center? How does one go about dealing with them?


Which sales stack do you use? Do you use a repricing technology like GoAura to make sure inventory sells for a competitive price and funds keep flowing, or do you ship product into FBA and forget about it?


At first, all of this may seem daunting, but start with one area (sales, in my opinion) and work your way through the others. In a few months, your company ought to be operating smoothly. No more restless evenings speculating about possible problems.


The role of repricing tools

An advanced repricing solution such as Aura is one of the easiest things you can add to your growth stack. With the help of pre-configured repricing techniques, you can optimize your pricing for maximum sales and profitability across the board.


You may also guarantee that funds continue to flow into your company, since far too many Amazon merchants have tens of thousands of dollars' worth of product stashed away. Rather, make sure that never happens by using the repricing method, which will free up more of your time to focus on other aspects like sourcing!


Suggested initial tactics

Repricing can seem intimidating when you first start. It's almost a strategy sandbox that you could start experimenting with. 80% of our inventory may be easily covered by just two techniques, as opposed to developing and testing every strategy that could possibly be thought of.


The Oscillation Strategy and the Liquidation Strategy are those two tactics.


When working with both new and seasoned vendors, we always use the oscillation method. It makes use of the way Amazon operates, which is to cut prices to boost sales volume and raise prices to keep average net profit margins high.


Overcoming the notion that you're "tanking the price" is crucial when using this tactic. There is no way that this is not the case. We must be in the Buy Box if we want to improve sales volume. We need a slightly greater offer in order to be in the Buy Box. Profit and sales are high due to the straightforward reasoning.


After the price reaches the minimum, it is "reset" to a marginally higher amount. This contributes to keeping the average net profit per unit high. The end result is higher sales while keeping overall net profit levels healthy. It's quite difficult to defeat!


For many vendors, our second tip is less thrilling. Naturally, I'm referring about the Liquidation Strategy. Even though nobody enjoys the thought of losing money on inventory, it happens when a firm is run.


We occasionally make poor purchasing choices and must recoup our investment. The number of vendors we encounter holding tens of thousands of dollars in "stale" goods is uncountable.


A liquidation strategy aims to return your capital as soon as feasible so you can use it for profitable spending right away. Additionally, you save money by avoiding long-term storage costs, which further reduce your earnings.


Generally speaking, we advise setting a maximum period of time (three to four weeks) for merchandise to be put up for sale before implementing a liquidation strategy.


Final Thoughts

We are systems thinking nerds, as you can see. It's difficult to locate a prosperous business leader who didn't use systems to help them accomplish their goals.

To get a great deal more information on how your business is doing and where you can have the most growth impact, we strongly advise you to finish the above-mentioned research.

Read More:

Top 10 Unique Ecommerce Business Ideas for 2023

Top 10 Crucial E-Commerce Pricing Techniques to Outperform Your Competition

You Can Launch These 5 Small Businesses for Less Than $20,000.

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