It’s a new year with a new attitude. We start the year making resolutions to lose weight, stop smoking, exercise more and most importantly make more money. Ideas arrive like a flitting bird or a rampaging bull depending on the person but when it comes to pulling income, it matters more how we approach the ideas than how they approach us. No one understands this more than business owners due to having to constantly evolve with a changing marketplace. eCommerce entrepreneurs are specifically in a place where change is a necessity. This includes altering and switching the tools we use to fit our business needs.
Although StreetPricer includes software that helps sellers find competitors and reprice their listings to offer buyers the best value at optimum pricing, we also offer velocity-based repricing. When trying to determine if this type of repricing is what you need as an eBay seller, first you should understand what it is. In sales, velocity is how fast your product or service is selling, therefore, determining how quickly money is exchanged. This same concept can be applied to eCommerce inventory. Sellers want a high inventory turnover rate to make sure cash isn’t being tied up in their companies. They want a high velocity. Velocity based repricing is a tool that reprices based on inventory versus on competitor pricing. How do you determine if velocity-based repricing is right for your business?
You Sell White Label Products
Sellers who list white label products tend to find velocity-based repricing helpful. White label products are sold by manufacturers to vendors that rebrand and label the merchandise as their own to sell to customers. White label sellers don’t often have competitors so it may seem like repricing is unnecessary. Velocity repricing is way around this since it’s based on inventory turn out instead of direct competition.
You Sell Used or Collectible Items
If you are a collector of antique cameras, you’re going to have a difficult time finding some else who is listing a pristine 1945 Kodak Junior Vigilant Six-Twenty. It wouldn’t do you much good to compete against one other person who is selling the same camera that needs repairs. Velocity-based pricing in this case allows you to price based on the length of time it has been listed or how often you turn other items.
You Don’t Use Standard Item Numbers
What do you do if you don’t use a standard product code like UPC or ISBN and the repricing software can’t find matches for your items? Your best bet is to take advantage of velocity repricing. Since it’s based on what you are selling and the rate of exchange, there isn’t a need to search out specifics by keywords or descriptions. This is especially true for sellers who list military surplus and car parts.
You Sell Items in Quantity Packs
If you do have a UPC but are selling in quantity packs (twin-packs, 6-packs, or larger volume liquids) you can adjust pricing by inventory since people sell in different quantities. Searching through eBay for another seller who offers a 5-pack of aromatherapy facial cleanser can be challenging and time-consuming. Adjusting your price based on turnover allows you more time to focus on shipping, cleaning up your listings, or bringing in new products.
You Don’t Want to Compete with Other Sellers
Sometimes, it’s not a matter of necessity and matching or beating other vendors’ prices isn’t vital to your business model. Perhaps, you are selling more expensive items and don’t want them priced down based on other sellers. For example, you want to keep your items in the higher-priced range, but you still want them matched for your lowest priced listing. It also helps you avoid getting into a repricing and inventory war with other vendors. Velocity-based repricing allows you to reprice against yourself and it lets you monitor what prices work for your business.
You’re More Concerned About Inventory and Cash Flow
For example, you have a batch of 800 products that you want to get moving out quickly and claiming your cash. Just set your criteria and let the software do its work. Your pricing will automatically be set based on how fast or slow the products and money are being exchanged. If you find that your inventory is flying out the door the price is raised according to market data. If the item isn’t selling as well, the prices will be lowered to boost sales and keep up your sales momentum.
Basically, velocity-based repricing through StreetPricer has a variety of uses including time savers. Its use depends on how you run your business. It reprices based on your sales history so you can keep up with your goals and adjust accordingly. This also assists you with keeping up with replenishment, shipping, and supplier lead time. Being able to compete, not only with others but with yourself gives you more options to rake in that cash to keep your New Year’s money resolution.