A Walmart vendor at one point thought they had full control of their pricing. Every morning they would log into their dashboard, look at competitors’ listings, and make quick notes in their head before changing their own prices, which they thought was a very strategic move. Some days it worked out well; other days it was clear they had missed something. Sales would go up and down at random and just as quickly go back down. They saw fluctuations in profit margin with no set pattern. In the end what was apparent is that they were reacting to what was happening rather than proactively setting out a plan. In a constantly changing market, they were not able to keep up with the speed of it. What they required was a system that could react faster than any human ever could.
Discovering the Game Changer
At a certain point the seller had a change in direction, which came about as they began to look at automation in a different light. While they were familiar with the term, they had been—for the most part—ignoring it. Curiosity got the better of them, though, which in turn had them do some in-depth research, which led them to a Walmart repricer that claimed to do real-time price analysis and adjustment. Also at first they were skeptical that software could outdo years of experience they had in the game, which included understanding the ins and outs of their own catalog as well as what customers want and what the competition is doing. They didn’t see how a tool could improve upon what they already were doing to protect their margins and grow their strategy.
But the seller was at the point of breaking under the manual management of hundreds of listings. The market was moving too fast to guess which way it was going. The seller went from a trial of automation to a requirement for progress.
Setting It Up
The setup process turned out to be very easy. The seller’s team had to put in basic rules for each product, set minimum price thresholds, and determine the parameters that the prices could not go beyond to avoid large fluctuations. At first they kept it very basic to see the system’s response. To their surprise the repricer was up and running in a few hours and was put into live use almost immediately.
It went straight to competing price point research and adjusted the seller’s listings to fit the parameters set. At the end of the first day, the seller’s full catalog was running on a very fast and unrelenting system that also had a high degree of accuracy.
Immediate Impact
The biggest shift the seller saw was in speed. As soon as a competitor changed prices, the system went to work. Prior to automation it was common for the seller to not see that info for hours or, in some cases, never. That left the business with delays, which in turn lost sales, in particular when they were trying to win the Buy Box.
Once the repricer took over, the seller saw an end to missed opportunities. Revenue stabilized almost at once. Within the first week, what they saw was that sales didn’t just go up; they became very steady. That stability in turn removed a great deal of daily stress.
Compounding Advantages
In some cases the seller saw a small increase here, at other times a protective price adjustment there; also, they saw prices go up when competition lessened. Over time these minor changes added up to improve margins, which in turn made the catalog appear more economical to the customer.
The system identified when competition was reduced and increased prices to improve profit health. Also, it saw very competitive times and lowered prices enough to stay relevant, which at the same time did not hurt margins that much. These decisions were automatic, which in turn the seller saw play out in growth across the whole catalog.
Operational Freedom
One of the ignored benefits of automation is the freedom it brings. Before they had the reprice tool, the seller spent a large part of each day anxiously on price checks, seeing into changes, and making updates. Also when not directly at the desk, the issue of price shift was a worry. Weekends saw price checks still taking place, and for vacation there was no break from the routine.
After going to the automated system, that pressure that was there went away. The seller shifted to what would be termed as strategic efforts—researching into new product areas, working with suppliers, putting together better product listings, and improving marketing. Time that had been spent on day-to-day issues was now put toward growth.
Competitive Intelligence
Unforeseen by the seller, the repricing tool also proved to be a great resource as they went along. What it did was far beyond price change—it identified trends, competition’s moves, and which of the seller’s products performed in what seasons. They found out which competitors would drop prices at certain times, they filled in market voids, and they saw which products had which price points based on demand.
Such systems took months to identify if they were noticed at all with manual processes. With automation these insights came out naturally, which in turn helped the seller make better inventory decisions and play defense on upcoming competition.
Psychological Relief
The emotional aspect of the issue was just as important as the financial. The seller did not feel forced to check in at 3AM or break up the weekend to pay attention to the prices. The robot didn’t get impatient or stressed out. It simply followed rules with precision.
By removing human error and emotion from the picture, the system brought in an element of peace and clarity to the seller’s operations. Also, they saw that in other areas the seller’s decision-making improved because mental energy, which was tied up in routine tasks, was freed up.
Scaling Without Limits
As the product catalog grew, the reprice tool scaled very well. Manual pricing was either a hiring issue or a sacrifice in terms of accuracy, but with automation the seller removed those issues completely. The same performance was seen whether they added 10 new products or 100; the system handled them all the same in terms of speed and reliability. This in turn made it easy to go after growth aggressively without increased operational strain.
Measurable Results
In the first month the seller saw an increase in their Buy Box share. Also, they noted that higher sales volume resulted from greater visibility. Margins stabilized, which in turn was a result of making smarter and faster decisions.
Consistent predictable trends, better forecast results, and in-depth info for when to restock or expand product lines. The seller saw steady growth, which was the result of regular automation.
Lessons Learned
The biggest lesson became clear: Pricing is a multi-faceted issue—it’s also a question of speed and consistency. While many a pricing strategy may be well thought out, they fall short in a competitive market in terms of response time. Automated systems break through the barriers of time, energy, and human attention. They run round the clock, follow rules to the letter, and adapt at a moment’s notice.
Looking Forward
Today the repricing tools the seller has are growing along with the seller’s business. With Automated price adjustments in place, they see in each new product, in each market shift, and in each competitive change the repricer responding. What they are seeing is a transformation in how the seller approaches growth. Instead of playing catch-up in the market, the seller is now able to plan strategic moves that they are confident will pay off.
