What was rather unknown among Amazon sellers a few years ago is now a household name for almost all retailers on Amazon. And it looks like the sale of Amazon private label products has just begun.
The rise of private-label merchants on Amazon stems from a desire to stand out from the ever-growing crowd of other third-party sellers. Many Amazon listing pages are flooded with a variety of listings, which can be overwhelming for a buyer.
For many retailers, the private label business offers a welcome source of income in addition to the sale of merchandise.
So what is the solution?
You offer articles under your ownbrand names, have your own details page and can design your offers as you see fit.
However, there are some common misconceptions among retailers that often lead to the anticipated results not materializing. Mostnotably, the common belief that private label products do not automatically need to be repriced.
Let's take a closer look at why this way of thinking is costing private label merchants sales and profits on Amazon, and we'll look at some ideas on how you can get better results for your business and your bottom line.
"I don't need to reprice my private label products, they have no competition!"
If you sell private label products, you have most likely either said this yourself or heard it from someone else. But is this statement true?
Many private label sellers agree with this statement, because who doesn't wish they didn't have to price match their products anymore.
However, as a retailer, you should know best: It's virtually impossible for you to be the only seller of an item on Amazon.
If you haven't found a niche for yourself, in many cases your branded item is already being offered by other sellers under a different brand.
Even if you are the only seller in your listing, a buyer searching for the item you sell is likely to see many other listings from other retailer brand and brand sellers.
For example, do a search on Amazon for "charging cable iPhone." Youwill see that there are many listings from different sellers; some sellers areprivate label, others are branded (e.g. Apple), all selling essentially the same product with different brands and packaging.
The point is that while you eliminate direct competitors to Amazon's offerings, you do not eliminate competing offerings for similar products. This situation is why the idea that "private label products have no competition" is and will remain a myth.
And, as with multiple direct competitor listings, if you ignore these indirect competitor prices, you will miss out on sales or, in many cases, leave money behind because competitor listings have increased in price or sold out.
If you remove the buybox from the equation by creating catalog pages where you exist alone, you need to find other ways to increase sales. A good start is to make sure your prices are in line with the current competitive situation for similar products.
If you offer a private label product at a fixed price with a certain profit margin and then leave product or price optimization to the left, chances are that other private label suppliers offering similar items will ensure that their product is priced below yours.
In this situation, the priority should be to find the buyers who are looking for the lowest price. When this buyer is looking for thedesired item, he will most likely buy the product with the lowest price if hesees many different products that are essentially the same.
Through metaprice's private label repricing, you can preventthis problem and compare yourself with up to 10 competitor asin's and their BuyBox prices.
You tell our system with which Asin's it should compare itself and define a price upper and lower limit, the rest is done automatically by the system 24h a day.
This strategy will ensure the following:
Your price remains competitive in the long term.
If necessary, you can even offer the lowest price, which is the key to more private label sales. In most cases, shoppers will choose the lowest price in agroup of similar items.
Private label repricing: an absolute need and a must!
The aim here is to maximize profit, optimize sales speed and remain competitive in the broad mass of similar offers from other private label sellers.
These are all important prerequisites for a successful private label business.
Do you have any questions about private label repricing?
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