Are you an Amazon seller looking to optimize your pricing strategy. You might be an Amazon seller looking to optimize your pricing strategy.
You’re in the right spot, so rest assured. This review will cover all you need to know about Seller Snap, including its key features and pricing.
This Seller Snap review should give you all the information you need to make an informed decision about whether or not this software is the right fit for your Amazon Business Strategy.
Let’s get started…
What is Seller Snap
Seller Snap, as we mentioned in the intro is an Amazon seller app. The app uses AI and game theory to optimize sellers’ Amazon stores. It automatically reprices your products on Amazon so that you get the best price. This will maximize your profits.
Seller Snap uses game theory, but it was originally developed by John Nash back in the 1950s. This theory is based on mathematical modeling and uses it to predict how potential players interact with one another. Seller Snap’s founders saw an opportunity to apply this theory in an eCommerce environment. They set out to make Seller Snap a reality in 2016.
How seller snap works
A non-cooperative game is the type of game that Seller Snap uses. This means that Amazon price matches can only be determined by seller competition. To achieve the best pricing strategy, you must constantly regulate your pricing to be competitive.
It’s obvious that Amazon is a marketplace where sellers compete with hundreds, if not thousands of others. This makes it difficult to compare pricing and respond appropriately.
Seller Snap’s AI can help you do the bulk of the heavy lifting.
Seller Snap predicts changes in the behavior of other sellers and adjusts your product’s price accordingly. This will ensure that your product is first in the Buy Box. The Buy Box is located on the right-hand side product pages and highlights similar or identical products on other sellers’ pages.
Imagine a customer looking to buy a product and seeing the same product in the “Buy Box”. Which product do they think they will choose? They’ll probably choose the cheaper option.
Seller Snap is a tool that helps you ensure your product has the best offer in your customers’ ‘Buy Box’. This will result in higher profit margins.
The Pros and Cons of Seller Snap
There’s a lot of information here. Let’s simplify it into a list of pros and cons.
The pros are first:
Pros:
- Avoid price wars. Price wars are when companies lower product prices to gain an edge over their competitors. These rule-based pricing strategies can lead to substantial profit loss for businesses. Seller Snap uses a flexible pricing strategy to ensure you meet your pricing thresholds. Seller Snap is not a rule-based repricing system that can reduce your profits to the lowest level in order to make a sale. Instead, Seller Snap encourages you to enter the Buy Box to show a more competitive price range.
- Maximize profits. A study from Northeastern University found that although only 2-10% Amazon sellers use an algorithmic pricing strategy, 60% did capture prices between $20 and $60 more than their competitors.
- Seller Snap automates product pricing strategies, so you can focus on other aspects.
- Long-term advantages: Machine learning and artificial intelligence can help you adjust your product pricing strategy over time in order to maximize profit.
Cons:
- Seller Snap updates prices automatically for users. This allows the user to control some aspects of the pricing. It is important to remember that although AI can take into account a wider range of pricing variables than humans and make decisions about them, the algorithm’s creators still decide those variables. The question is: Do you think that you know more about Seller Snap than they do?
- Pricing: Although algorithmic and AI pricing software offers many advantages, they are more expensive than manual rule-based pricing systems. Amazon Seller Central allows you to set your pricing rules manually for no cost.
Seller Snap’s Core Features
Seller Snap offers three main offerings. They are:
AI Amazon Repricer
The most prominent feature of Seller Snap is its AI Amazon Repricer. You can simply’set it, forget it’ and the Seller Snap algorithm will learn from your competitive environment to adjust prices to match yours. The seller does not need to set up.
To fully understand the benefits of Seller Snap, it is important to understand which pricing strategies the top Amazon sellers use. There are two types of pricing strategies that sellers use.
- Rule-based pricing: Here you create a set of rules that will guide your pricing decisions. You might have a rule that says your prices must always be 10% lower than your competitors’ price. This method of competition requires a lot of rules in order to be able to respond to market demands. Your rules must also reflect new selling trends. This strategy does not take into account the pricing of competitors. Other factors could also affect your pricing margin such as customer willingness to pay or changes in buyer behavior.
- Seller Snap uses algorithmic pricing or AI. This method takes into account a larger range of variables, such as inventory and product performance (more details below). The machine learning in AI allows the software to learn and improve its pricing strategy. It eliminates human biases that can sometimes crop up in traditional rule-based pricing and can react to market trends in real time.
Custom Repricing Strategies
Seller Snap offers a variety of customized repricing strategies to help sellers achieve specific goals. These include:
- Win Buy Box: This approach allows sellers to determine the percentage they wish to reach in their buy box. Once this percentage is reached, the repricer will drop the price.
- Prime seller: This is a special approach for SFP Amazon Sellers. These sellers fulfill prime orders directly from their warehouse. Seller Snap makes it easy to compete against these sellers by automatically adjusting your maximum price in order to be competitive with SFP sellers.
- Follow a related ASIN. ASIN stands for Amazon Standard, Identification, Number. This database is used by Amazon to match products that are similar to yours. Seller Snap lets you track ASIN competitors to help you outmatch them. This strategy can also be used to price bundled items or labels together.
- Time-specific pricing: You can modify prices based upon specific hours or days.
- Velocity-driven pricing: You can set the amount of product you wish to sell and the software adjusts the price to match.
Seller Analytics
Real-time data from seller analytics shows you how well your product is selling in terms of revenue or profit. This allows you to highlight your most successful products. You can also get information from seller analytics about your competition, including a breakdown of FBA, FBM and SFP. In the buy box, you can see how your performance against these competitors.
Seller Snap can also notify you when inventory levels are low and that replenishment is needed. The Premium plan allows you to generate advanced data reports, including inventory replenishment data. These reports will show you how much stock and how long stock will last for a given time. It even calculates storage fees and tells you when products are about to expire. Advanced data reports also include information about product returns such as the number of items that have been reimbursed, and the return rate.
Pricing
Seller Snap offers a free 15-day trial for customers to try their product. You can then choose one of these plans:
The Accelerator Program
This plan is different than the rest because it is specifically tailored to small businesses. Seller Snap is a service that helps small businesses publish less than 1,000 product listings per month and generate sales of less $25,000 per month. The website outlines the eligibility criteria. It’s basically a plan that is offered at a lower rate to growing sellers.
- Prices start at $250 per month for one online shopfront
- Seller Snap’s AI price, all other tools and extensive analytics will be available to you.
- The program is available for six months. You must upgrade to either the Premium or Standard plan if your sales volume exceeds $25,000 after six months. You may be asked to quit the program if your sales drop below $25,000 or you could be granted another six-month period to improve.
Standard Subscription
Although the Standard program appears to be the same as the Accelerator, your listing and user limits are higher:
- Prices start at $500 per month for one online shopfront
- This plan allows three registered users to manage 15,000 listings.
- You receive 24/7 customer support.
The Premium Subscription
- You’ll get everything in the Standard plan for $800 per month* plus these additional features: Advanced metrics, including replenishment data and return data. Also, information about your sales rank relative to other competitors.
- The plan provides three online shops with access for up ten users to manage up to 30,000 listings.
- You’ll have 24/7 customer support and a dedicated account manager who can provide expert advice specific to your business.
- Access to Seller Snap’s API is also available, which allows you to integrate the Seller Snap App with third party platforms.
The Unlimited Program
- This plan is most suitable for larger companies.
- Contact Seller Snap to receive a customized quote.
- You can manage multiple stores and unlimited users, for more than 30,000 listings. You can also create custom features that are specific to your business.
All Seller Snap plans are charged on a rolling monthly basis.
Is Seller Snap the Right Choice?
This could be an answer to critics of AI pricing methods because they lack control. This term is used in behavioral finance to refer to how people reaffirm what they already know. These tendencies can be seen in situations where merchants set product pricing genuinely believing it is the best for their business. However, they don’t always reap the greatest profits.
We tend to lean toward strategies that have been successful in the past, even though we don’t have all the latest data or market trends at our disposal to make the best decisions. AI software can help you account for more variables and decrease biases to launch the best pricing strategy.
The credentials of the inventors can provide some assurance if you are unsure about Seller Snap’s legitimacy. The co-founders have over ten years experience in marketplace-based eCommerce. They are a specialist in Amazon’s marketplace. The app’s long-standing field of game theory may be of some value to you.
These points are enough to show that algorithmic pricing can be a legitimate way of increasing profits. If you have the money, we believe that Seller Snap is a great option for Amazon Sellers. You can sign up for the no-cost trial to see for yourself.
