{"id":19515,"date":"2018-08-15T16:00:02","date_gmt":"2018-08-15T21:00:02","guid":{"rendered":"https:\/\/www.shipstation.com\/?p=19515"},"modified":"2024-10-10T12:05:07","modified_gmt":"2024-10-10T17:05:07","slug":"ai-repricing-boost-turnover-profit-ebay","status":"publish","type":"post","link":"https:\/\/www.shipstation.com\/blog\/ai-repricing-boost-turnover-profit-ebay\/","title":{"rendered":"Use AI-Based Repricing To Boost Your Turnover And Profit On Ebay"},"content":{"rendered":"\n

This blog was contributed by Cardy Chung from StreetPricer.com<\/a>. Cardy Chung founded StreetPricer in 2016 after 13 years in online retailing and developing software for exclusive use in his eBay and online business. Prior to online retailing, Cardy was an executive in the IT industry and Board Member of an ASX-listed technology company. He holds a B.Sc. (Hons) Computer Science (1st Class) with a major in Artificial Intelligence.<\/span><\/em><\/p>\n\n\n\n

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If you are aiming at pricing your products for optimal turnover and profit, eBay\u2019s listing-based platform is totally different to Amazon\u2019s catalog-based platform. On Amazon, there is no need to locate competitors for your items, as they are right there – all under the same ASIN numbers. However, finding and identifying competition on eBay is almost an art form, as it is up to eBay\u2019s \u201cBest Match\u201d algorithm to bring up competing listings using Titles, Brand, MPN, UPC, and the endless combination of Item Specifics.<\/span><\/p>\n\n\n\n

eBay is a competitive marketplace, especially for mainstream branded products. Whereas Amazon customers may make their purchase decisions based on reviews, delivery and customer service, eBay customers love deals. \u201cTop Brands\u201d and \u201cBest Prices\u201d has been the mantra at eBay and their marketing team push the messages.<\/p>\n\n\n\n

On eBay, the market is price driven. If your pricing is out, you\u2019re out. Price-monitoring on eBay on every SKU is an impossible task. Thankfully, there are automated price tracking and repricing tools to put you ahead of your competitors.<\/span><\/p>\n\n\n\n

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A good eBay repricer tool finds the competition for you based on your data and your competitors\u2019 listing data. It tells you who your competitors are, what are they selling, when they are selling, how much the items were sold for, and how many. With such data, you can implement your pricing strategy effectively to achieve the best balance between turnover and profitability. You\u2019re in control.<\/span><\/p>\n\n\n\n

Repricing is one of the latest and fastest growing tools on eBay selling. We are seeing an astonishing monthly compound growth rate of 30%. Let\u2019s have a look at the reasons why.<\/span><\/p>\n\n\n\n

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  1. It\u2019s all about the price <\/b><\/li>\n<\/ol>\n\n\n\n

    We all love the hunt and  eBay customers are expert at it. They google the product specs, the model, and the color. They decide what they want to buy, and that\u2019s when their fun begins \u2013 who\u2019s got the best price on eBay? It is too easy for buyers to compare. It\u2019s too transparent with eBay\u2019s Best Match and Group Similar Listings. <\/span><\/p>\n\n\n\n

    With structured data on listings such as Brand, Model, MPN, and UPC, there is little room for product differentiation. The products are all the same, and they are all protected by eBay\u2019s refund and return policies, why should anyone pay more other than the lowest price?<\/span><\/p>\n\n\n\n

    I see this all the time. One eBay seller ambushes another by sneaking in a listing with the same Title but one cent cheaper. The result? The seller who is losing the sales won\u2019t know about it for days, sometimes even weeks.<\/span><\/p>\n\n\n\n

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    1. Price Monitoring: You don\u2019t have the time<\/b><\/li>\n<\/ol>\n\n\n\n

      Ideally, you\u2019d want to do price monitoring for your eBay store regularly, say, at least once every couple of days. But in practice, once your store grows beyond several hundred SKUs, it will no longer be possible to do manual price monitoring. It\u2019s too complex and tedious. You could employ staff to do the job, but it is expensive, and after all, price monitoring is most suited for automation with algorithms.<\/span><\/p>\n\n\n\n

      Because it is \u201ctoo hard\u201d, most sellers either don\u2019t do it or do it only to find it\u2019s too late. Once you start losing sales, your Best Match search ranking drops, which in turn further reduces your page impressions and conversion. You could find yourself in a downward spiral very quickly.<\/span><\/p>\n\n\n\n

      If you don\u2019t do price monitoring on eBay, you\u2019re exposed. Someone could be eating your lunch. We don\u2019t want that. We want a tool that can help you build your sales momentum, and always put you in the driver\u2019s seat. <\/span><\/p>\n\n\n\n

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      1. AI-based Solution from StreetPricer<\/b><\/li>\n<\/ol>\n\n\n\n

        StreetPricer is the latest ShipStation solution partner. It scans eBay for competitors of your store listings. Its \u201cRadar\u201d uses artificial intelligence (AI) algorithms so it can handle catalog or non-catalog items. For catalog items, operations can be highly automated, and in some cases, completely automated, depending on the product categories your items are in. For non-catalog items, you can use AI Scan to give you results, without supplying product keywords. Alternatively, if you are willing to spend the time to come up with keywords for your items, it always gives more targeted results.<\/span><\/p>\n\n\n\n

        The results from AI Scan vary, and it is quite dependent on what information you supply with your own items, and similarly what item-specific data is supplied in your competitors\u2019 items. In any case, you can set filters and parameters to tailor the results to your business.<\/span><\/p>\n\n\n\n

        A unique feature is its support of eBay\u2019s multi-variations. It has a \u201cShow MultiVariations\u201d feature, which cuts down the amount of time you have to spend sorting out all the various combinations between your items and your competitors\u2019.<\/span><\/p>\n\n\n\n

        Conclusion<\/b><\/p>\n\n\n\n

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        The #1 question I get asked all the time is \u201cIs this a race to the bottom?\u201d The answer is \u201cDefinitely not\u201d. I can see from the data coming from over 25 eBay and Amazon sites, 50,000+ sellers, almost 1.5 million listings that we are currently tracking, and 200,000+ reprices we do each day, that 49.3% of the reprices are upward movements, vs 50.7% of price reductions.<\/span><\/p>\n\n\n\n

        Why? Because you if your competitors are no longer discounting or if they are out of stock, you\u2019d want to know about it so you can move your prices up immediately.<\/span><\/p>\n\n\n\n

        \u201cUp\u201d reprice means increased profit, and a \u201cDown\u201d reprice means an increased turnover. AI-based automated repricing is the best- kept secret eBay tool for 2018. You should definitely check it out. <\/span><\/p>\n\n\n\n

        ShipStation and StreetPricer are partnering to ensure your marketplace\u2019s growth. Together, we plan to assist you in pinpointing the best prices for your ecommerce store. Learn more about the \"StreetPricer<\/a><\/span>