Behind the scenes at Splitly, we have been working away creating the most powerful solution for automated pricing for Amazon private label sellers. So it is with great pride that I would like to announce a new tool that we are offering to all of our users… enter Profit Peak!
Powerful Amazon Automated Pricing Optimization
We set out to build a reliable automated pricing optimizer for FBA private label sellers. One which would enable sellers to simultaneously optimize their product pricing, increase profits, maintain stock levels, without any time consuming work on the sellers part.
Splitly users are already optimizing many elements of their product listings to great effect, and seeing some incredible sales and profit increases. This includes running A/B experiments on price, images and product copy. But when it comes to price, we wanted to add some extra functionality to the Splitly toolkit to enable FBA sellers to maximize their time and profits.
Let’s take a look at the power of Profit Peak:
- Automatically tests random prices based on the current best known price
- Recalculates the best known price constantly, so Profit Peak knows where you can get the maximum profit
- Reacts to sudden supply/demand events, which can include competitor movements or seasonal fluctuations
- Handles stock quantities effortlessly, helping you to run out of stock on a specific date and reduce the risk of going out of stock
- Set it and forget it – Profit Peak does all the hard work for you, giving you more time to prioritize other things
Profit Peak In Action
We’ve been furiously testing the Profit Peak tool before we launched it this week and I want to share some of the results with you, as well as give you an insight into what the tool looks like.
First of all, it is worth mentioning that to set Profit Peak up for your product is easy. You will need to enter the following information:
- Fees & Costs (such as your FBA fees per order, referral fee and unit cost)
- ASIN (optional)
- Min – Max price (optional)
- Stock Deplete Date (optional)
This is all information you will have ready and waiting for you as a private label seller and it only takes a couple of minutes to dig it out of your (nicely organized, of course) spreadsheets and enter into Profit Peak.
Example #1: Optimum Price Was Lower Than Original
This Splitly user had a price of around $38.50 before turning Profit Peak on. The product was performing well but as we later find out, this price was certainly not optimum.
At the moment, optimum price is $34.46, but this will fluctuate based on demand and stock levels. You can see in the following graph from Profit Peak how the optimum price has been continually tested and automatically altered since the beginning of November to the start of December:
And also take look at the pricing scale in terms of performance and sales:
Due to the fact that Profit Peak will be continuously testing the best known price, the price that has had the most sales historically may not always be the optimum price at any one point in time. But, by proactively finding the best price and automatically repricing your product, you will always remain ahead of the game.
Particularly during the festive season, for example, Profit Peak will handle supply and demand changes instantaneously.
Although many factors can be taken into account for increases in sales and profit, (such as PPC and promotions), you will soon be able to see how Profit Peak can assist you in improving your bottom line. Particularly if you have products that have been selling for several months, you will be able to see your sales history reported directly within Profit Peak.
Example #2: Optimum Price Was Higher Than Original
Profit Peak will not just decrease the price. In some cases, the best price may actually be higher than what the product was listed at before firing Profit Peak. Here’s an example of where this happened with some of our beta tests:
This Splitly user had their price at around $13 before turning Profit Peak on, and the best optimum price at the time of writing was over $14 – a whole dollars difference that can make a large impact on your sales.
The tool clearly states the optimum pricing fluctuations over the past month, which is useful to see how the pricing trends have shifted. In this example, the price has fluctuated by 11.73%:
It will also show you the current price that the product is selling at – this will be constantly shifting, in the direction of the most optimum price:
So in this example, we have seen how Profit Peak could potentially increase your price instead of decrease it, as well as how the tool shows you the current and optimum prices as well as monthly fluctuations.
This example also shows how quickly Profit Peak will react when it realises that your price is not the best known price, and continue to test and automatically alter the price accordingly.
If you’re a data nerd and you really want to know every move Profit Peak is making on your behalf, there’s the option to download the Raw data in a .CSV file, so you can see each and every update. We’ve got you covered!
Is Profit Peak A “Repricer”?
Profit Peak does function a little bit like a repricer, but has some distinctive differences (and advantages) over the average repricer, such as the one you can find within Seller Central, or other third party repricers.
So what is a repricer?
A repricer is generally a tool that helps sellers who are competing for the “buy box” alongside other sellers, to try and win more sales. Here’s an example below of where several sellers are competing for the yellow buy box that Amazon owns:
Amazon will rotate products that are within 2% of the lowest price, and that have good seller feedback, in this buy box. So in this case, these are wholesale sellers, who all want to get more sales by out pricing their competitors and by getting more time in that buy box. These are sellers who are competing with other sellers on the same listing!
Most consumers don’t even realise that this is happening, and are often looking for the best price and will hit the clearest call-to-action.
And why is Profit Peak different?
By comparison, Profit Peak is for sellers who have listing control, and are selling FBA or private label products. So in short, Profit Peak provides automated pricing for sellers who are not competing on price within the same listing, but with everyone on Amazon.
Essentially, for private label sellers, you will be able to maximize your chances of being competitive and staying ahead of supply and demand compared to everyone selling similar products on Amazon. This is a powerful advantage to have (alongside Split Testing your Amazon listings).
How Profit Peak can Benefit You!
Try Profit Peak with Splitly
Profit Peak algorithms have been crafted with great care to ensure they can take care of a number of situations automatically. It works to your advantage when there are supply and demand changes, such as over the festive period. But it can also get you out of a tight spot and prevent you from running out of stock.
Tip: Each product you set up on Profit Peak will use up one of your concurrent test allowance. If you have a Parent ASIN with many siblings, you can sync these together, so they would still use one of your test allowance. Check out our pricing and plans here.
Importantly, Profit Peak’s main responsibility is to be reactive when you would otherwise miss an opportunity, and contribute towards increased sales velocity and profit.
Splitly is the most sophisticated Amazon Split Testing software on the market, now with the powerful addition of a sophisticated automated pricing optimizer for private label FBA sellers.
If you are already a Splitly member looking for help in setting up Profit Peak, you can always email us at [email protected].