eBay Repricing Tools – The Quickest Way to Boost eBay Dropshipping Profits
If I asked you to name some ways to increase your eBay dropshipping profits, you might say:
- “List more items”
- “Research new niches”
- “Source items from a different supplier”
All important, but none of these can make as quick an impact as using a repricer.
- Having an eBay store where your prices automatically change to win every sale yet still make you the maximum amount of profit that you possibly can
- Being able to make an extra $100, $500 or even $1000+/month of profit without sourcing any more items to dropship
- Never worrying about a sudden drop in sales when new competitors come along and start selling the same item as you.
Even better, eBay repricing software is usually very simple to setup, and once configured, can be left running in the background doing all the work for you.
So let me show you a tactic that the top 10% of dropshippers use to win 90% of the sales on eBay.
What is eBay repricing software and how does it work?
When you’re dropshipping from Amazon to eBay, you’re very likely to have competitors selling the exact same item, so it’s essential that you have a competitive advantage to win the sale.
This competitive advantage could be that you have the fastest shipping or more feedback than your competitors.
But most of the time, what buyers really care about is getting the lowest price.
However, there’s one big problem.
You run a dropshipping business with hundreds of listings. You find a hot new item on Amazon that seems very profitable to dropship on eBay. Your pulse races as you check your competitors and see you can price yourself as the lowest. Success!
Excitedly, you rush to list it and for the next few days, all you hear is the constant “KERCHING!” noise from eBay as the sales pour in.
But all of a sudden, something happens…
Another seller starts selling the same item as you but undercuts your price causing your sales to slow to a trickle. Instead of “KERCHING!” noises, you peer out of your window and all you see is tumbleweed.
A competitor that was selling the same item as you leaves the market. Whilst your sales continue to flow in, you realize that you could easily make more profit if you raise your prices because you’d still be the lowest priced seller!
In both of these situations, the solution is obvious. You need to change your price.
But the kicker is that if you run an eBay store selling hundreds of items it would take huge amounts of your time to manually check your prices every hour.
Enter… eBay Repricing Software!
Repricing software automatically checks the prices of other sellers and then adjusts your own prices so that your listings remain competitive when new sellers enter the market, leave the market or competitors change their prices.
This way you can ensure you’re always making the most profit you possibly can from every eBay item you’re selling.
Did you know: If you’ve ever used a site like Skyscanner to compare prices before buying, then you’ve probably experienced “repricing”. It’s very common in industries where buyers mainly choose based on price, such as with flight tickets and insurance.
How it works
Here’s a couple of examples to show you how an eBay repricer works to get you more sales.
Example 1: Let’s say you’re selling some window blinds for $20.00, but there’s a lower priced competitor selling the exact same window blinds on eBay for $19.50. The repricing software will detect the competitor and then lower your own price by $0.01 – so your price changes to $19.49. This way your listing will remain the lowest priced and rank highest in “lowest price” searches when buyers search for your item so you attract more sales.
Example 2: However, now let’s say you’re selling the window blinds for $20.00 but the nearest competitor is charging $25.00. You might be raking in loads of sales but you’re leaving a lot of potential profit on the table by charging too low a price. This time the repricing software will the competitor and raise your price to $24.99. Now you’re still the lowest priced, but every sale will net you around $4.99 more profit than before!
Obviously, you want to make sure that you don’t end up making a loss when chasing sales, so most repricers have one particularly important parameter:
Above: The general repricing settings on Salefreaks. You can click here to signup for your free trial and try it yourself!
The profit range
This is the minimum and maximum amount of profit you’re willing to allow the repricer to change your item price too. Usually as either a percentage or monetary value.
Once you’ve chosen your settings, you can sit back and relax whilst the software automatically checks and changes your prices for you!
Just remember: Most software allows you to set a minimum profit amount, which whilst useful, can mean you might not always be the lowest priced seller.
For example, if your total item cost (including all Paypal and eBay fees) was $10, and you set a minimum profit value of $2, then your repricer would never reduce your price below $12 – even if a competitor listed the same item for less!
Choosing your pricing strategy
One of the great things about repricing software is that you can use it to set different repricing rules for different items – and on eBay that can be a HUGE advantage.
For some items in your store, your strategy should be to prioritize SALES instead of profit.
For example, take a look at this listing:
What are the general characteristics you notice?
- A very low price point – making it an easy impulse buy for customers
- A mass market appeal – most people need a case for their phone after all
- A very high STR (sell-through rate) – 2230 sold!
It’s safe to say this eBay seller is making a tiny profit, or no profit at all, from selling this phone case. But that’s not the point.
Instead, they’ve purposefully set their price very low because their strategy for this item is to is to generate lots of feedback and a higher sales ranking.
Now the clever part: The sales ranking and the feedback that this item generates means more sales and a higher sales ranking for all the other items in their store too – and of course the other items will be repriced with high profit margins.
How you can use this to build a highly profitable eBay store:
- Find a few items from a niche with a very high sell-through rate (e.g. phone cases, packaging, chargers), then list them on eBay and set your repricer settings to accept a very low minimum profit (e.g. $0.20) per item. Focus on getting sales and let the repricer keep your listing super competitive.
- But on the other items in your store, set your repricer to focus on maximizing profits instead to benefit from your store’s increased sales ranking.
The #1 Repricing Myth – “It’s just a race to the bottom” Some people falsely believe that using a repricer is just about lowering your prices to get more sales. However, a lot of the time your prices are actually too low! The thing is, it’s harder to notice when your prices are too low because you’re still making sales. Repricers are invaluable tools at raising your prices as the competition changes and making you more profit per sale.
The #1 reason you need to start using eBay repricing software
Dropshipping success has focussed a lot on building the best SEO titles and descriptions to get your listings seen above others. That is, until now.
This spring, eBay started the rollout of “product based listings” where listings of the same product are grouped together. For now, it’s limited to a select few categories, but with time you should expect it to change the entire site.
Above: An example of the new “product based listing”
What this means for you:
- eBay is creating an experience just like Amazon where all the sellers of the same product share the same listing.
- This makes it much easier for buyers to compare prices of items than before, meaning your price is likely to have a much larger impact on your sales.
- eBay will display their “top pick” amongst all the sellers. Their choice is largely influenced by price along with other factors such as feedback.
- Being eBay’s “top pick” means a far greater chance to win sales. On Amazon where sellers already compete to “win the buy box”, it’s estimated that 80-90% of sales go to the sellers that are Amazon’s suggested choice.
All of this means that more than at any time before, using eBay repricing software is vital to having the most competitive price possible and succeeding on eBay.
Soon, repricing software won’t just be a tactic a few of the best dropshippers use to get ahead. It’ll be the tool you must have to survive as a seller.
Started using a repricer for your eBay store? Any tips you’d like to share? Leave your comments below!
P.S. Ready to start repricing your own items? Click here to start a 14 day free trial of Salefreaks today.