CASE STUDY
Can Repricer.com Help Amazon Sellers Generate More Sales?
In this case study, we analyzed the data from a sample of Amazon sellers who use our repricer to examine how it impacted their sales over time.
The results were fascinating! We found that sellers who utilized our repricing tool experienced a substantial increase in sales between their first week and the end of the experiment. Not only that, but they were also able to maintain a competitive edge against other sellers in the long term.
Objective
Our objective was to investigate how Amazon sellers utilizing our repricer were able to enhance their sales and gain insights into specific periods of growth.
Method
We analyzed a random sample of 300+ Amazon sellers using Repricer over a 30-week period
Outcome
We found that sellers experienced an average increase of 143% in weekly sales during this timeframe. Our sellers were able to scale their Amazon sales at a rapid rate in a short period, while also maintaining this increase in sales volume over a sustained period.
The long-term impact of using a repricer is measured against sales generated in the first week of repricing. To preserve the integrity of the analysis, we deliberately did not measure against sales volume prior to using a repricer.
The revenue growth experienced immediately after repricing software is introduced is often considerably higher, so actual growth would in fact be understated in this report.
Automated Pricing - The 4 Stages of Revenue Growth
Over the course of the 30-week period, we analyzed 4 key stages of revenue growth:
Immediate Growth
Accelerated Sales
Sustained Growth
Longevity
Immediate Growth
Accelerated Sales
Sustained Growth
Longevity
Week 1 - Immediate Impact
In week one, online sellers will typically start by adding pricing rules to a portion of their SKUs.
After they experience growth in sales, sellers then usually add rules to more products and optimize their pricing strategy across all products.
The majority of sellers in this case study used automated repricing on multiple Amazon marketplaces, including the US, UK, Canada, Japan, Germany, Italy, France and Spain.
Weeks 2 - 4 - Accelerated Sales
From when repricing commences right through to week three, Amazon sellers experience a rapid increase in sales of 64% as automated pricing optimizes product prices on the hyper-competitive Amazon marketplace.
By week four, this increase in sales reaches 87% in comparison to sales volumes in their first week of using a repricer.
You’ll notice a small decline in sales volume in Week 2. This can be due to a short period of repricing inactivity noticed by a few sellers during the trial-to customer transition period when the 14-day trial ends.
Sellers are now regularly adding new rules, with 58% of these rules focused on fulfillment method. The other 42% of rules were related to:
Weeks 4 - 20 - Sustained Growth
In this period, sellers have developed a refined repricing strategy across the majority of their products on multiple marketplaces.
During this period, sellers start to reap the benefits of our powerful analytics to inform repricing strategy. Some of the high-impact features include Buy Box competitor targeting, price movement tracking and sales performance analysis.
Sellers continue to add repricing rules, allowing them to maintain a healthy growth in sales. Repricing strategies become more tailored for each product in this period too.
In comparison to the initial period (Weeks 1-4), the focus on targeting competitors by fulfillment method reduces. FBA-related scenarios now only account for 39% of active repricing rules.
As sellers improve their understanding of the competitive landscape, the development of more targeted repricing rules drives this sustained period of sales growth.
Weeks 20 - 30 - Longevity
The data also shows that the impact of repricing isn’t just a short-term boost in revenue.
Amazon sellers are able to sustain this new level of sales in the long run.
Our repricer has allowed sellers to maintain a significantly higher volume of sales after 30 weeks of automating prices.
Sellers have grown their Amazon businesses and now have the capacity to make more sales, identify and sell more products, and become consistent top performers in their niche.
With an average revenue increase per seller of $203,000 over the 30 weeks of the study, our customers have the capacity to invest more in their business, expand internationally and become major players on multiple Amazon marketplaces.
Extra $200k in Amazon Sales
The average weekly sales volume for the sample of Amazon sellers stood at $5,936 in the first week of using repricing software.
The study showed a significant increase of 64% in average sales from the first week to the second week of using a repricing tool.
After 30 weeks, the average weekly sales volume rose to over $14,500, representing a 143% increase in just over six months of using our repricing tool.
This growth amounts to an average increase in revenue of $203,000 for each seller over the 30-week period.
