Equipped with advanced machine learning algorithms, the BQool AI Repricer can construct the most optimal price point to win the Buy Box while increasing the price to maximize profit.
The Goal of the AI Creation
The goal of the AI-Powered Repricer is to streamline the creation of the Repricer rules. It will automatically factor in a wide range of competitors’ metrics that will impact the Buy Box win rate, including ASIN, fulfillment, the list price, seller metrics, and more. This enables the AI to outperform and compete more effectively against competitors with different seller profiles under every ASIN.
The Logic behind the AI Repricer
The system filters the price adjustments based on historical data to construct a range that we think has the highest chance of winning the buy box. This range represents the price adjustment based on competitors. The more data we collect, the smaller the range will be, until we know the most favorable price to acquire the buy box. The image below illustrates the list price configuration process of BQool’s AI repricer.
Even more impressive, the AI can track and store the full history of sellers’ list prices and Buy Box prices, meaning it analyzes real-time market trends and historical pricing data for every Amazon ASIN. It can learn and predict the competition’s repricing patterns and call for a more aggressive repricing approach if needed.
3 AI Strategies
There are 3 variations of our AI Repricing rule, based on the level of competition.
These are intense, moderate, and low competition.
AI Buy Box Winner I – Intense Competition
Reprice aggressively. Recommended fulfillment type: FBM
The AI Buy Box Winner I: Intense Strategy is sales volume-oriented while also keeping profit margin in mind. Our AI-Powered Repricer can be used to maximize sales aggressively and go for the buy-box. This is suitable for the following scenarios:
- There are over 15 sellers in each competition and there is a combination of FBA/FBM sellers.
- When a lower per-unit profit is acceptable.
- There is a lower min price, which gives more repricing leverage to AI.
- The repricing activities are dramatically changing every 5 minutes (ultra-competitive).
- During inventory liquidation.
- Amazon is present.
- There are lower-priced competitive products with an abundant inventory.
AI Buy Box Winner II – Moderate Competition
Reprice moderately. Recommended fulfillment type: FBA, FBM
- There are 10-15 sellers.
- When selling products that are less price-sensitive.
- A higher per-unit profit is the goal.
- Recommended for FBM/FBA Sellers
- Ideal for quick sales with the possibility of occasionally selling higher than the Buy Box price, driving up your profits.
- Aiming more for profits and ROI than immediate sales.
- After winning the Buy Box, this strategy will also attempt to raise the price incrementally when possible.
Finally, we have our low competition AI rule. This is suitable if you are selling the same items. Perhaps you're in the same arbitrage group, and you're sharing the buy box and you are all trying to maximize your profits per unit. You are not buying in large quantities and don't have a very large inventory. This is also very suitable for you if you're selling high ticket items that don't quickly depreciate, and the price has been constant.
AI Buy Box Winner III –Low Competition
This is best for the following scenarios:
- There are less than five sellers and your goal is to maximize profits.
- When the goal is to maximize the profit per unit.
- There are only a few products or items left in inventory and not a lot of competitors.
- You’re selling high ticket items that don’t quickly depreciate, and the price has been constant.
Certain situations are most favorable for using the AI Repricer. This is when there are less than 20 competitors. If it's over 20, it's too saturated. Second, when price below the minimum. This is when the competitor’s buy box price is lower than your min price.
Additional Repricing Scenarios:
Users can further fine-tune if/then competition scenarios as outlined below:
When no one owns the Buy Box:
This scenario indicates Amazon has suppressed the Buy Box on this ASIN.
When you are the only Seller:
This scenario indicates you are the only seller under the ASIN.
When your Product is backorder:
When the Amazon fulfilled inventory is in transit between different fulfillment centers, Amazon will mark the corresponding listing as ‘on backorder’ status. During the inventory transit period, the AI might determine to go to lower pricing to stay competitive for the Buy Box owner. Users can determine how to reprice in this given scenario to avoid any unexpected price drop.
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