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Why Amazon Allows Repricing?

As you may imagine the constant repricing of products take a toll on the servers of Amazon. In the same time the sellers who have a good repricing strategy gain an unfair advantage over the sellers who offer high quality services when it comes to customer experience and shipping speed. So just why do Amazon allow it?

The goal of Amazon is to offer a great customer experience and low prices are an important part of this. By making it possible for sellers to practice repricing, the prices will become more competitive, which increase the chances of a buyer ordering from Amazon instead of some other website. According to Amazon's algorithm, sellers should not sacrifice excellent customer experience and fast delivery time for lower prices; however price undeniably is the main factor in gaining more sales and the buy box status. This is why Amazon themselves …

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Why Reprice Amazon Listings?

Repricing on Amazon is more common than you would think and it is driven by three main factors: the Amazon catalogue, the Buy Box, and Amazon's support for repricing.

Things to know about the catalogue

Since the beginnings, Amazon has been based on a catalogue. You can't possibly list a product that isn't linked to the catalogue. However, there is the possibility to add new items to it. Once you add new items, they will become a part of the catalogue and other sellers will be able to sell them too. This structure makes it easy to find products. When everything works as they should, each product should only appear once in the catalogue, along with the details page. This aspect represents one of the main differences between Amazon and eBay; on eBay a search can result in thousands of hits for the same product.

Since …

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