First of all, when do underprice another FBA bookseller (or reprice)? Is it:
- When you want to get quick sales?
- and/or increasing the likelihood of winning the BuyBox?
Now, let me tell you why it might be totally wrong and shortsighted.
1. You lose potential profits
When you underprice another FBA bookseller by a penny, the next FBA seller will do the same and the next one will use a repricing software to do the same thing every hour, and so on. The result: each seller would end up earning half the profit than what they would have if they had not repriced so frequently.
2. When you’re into a business, you don’t want a quick sale, but maximum money.
3. Even if you match the lowest FBA price, you still have a 50/50 chance of getting the top spot.
Amazon has their algorithm that determines which of two equally priced offers get the top spot on the listings. If your feedback is good and the condition of the book is good, your chances might be better than 50%.
And you didn’t have to sacrifice your dignity to get it. You didn’t have to contribute to the deadly “race to the bottom” to get it. You didn’t have to contribute to making FBA unprofitable for everyone to get it.
4. Avoid using the repricing softwares
If you’re using repricing softwares to underprice another FBA booksellers, you’re actually following an accelerated approach towards the “lowest possible profits”.
5. Aim for the highest priced sale and not the next sale
Why would you need the money so quick? If you’re here to make money, why don’t make the most out of it.
But let’s say you matched the lowest price and didn’t get the top spot.
First of all: Who cares? It’s not a race.
That aside, not getting the top spot doesn’t mean not getting the sale. Buyers will see there are two equally-priced FBA offers, and make a decision based on condition, feedback, and the product description.