Q&A: How can I avoid repricing scams?
QUESTION: I'm concerned that unscrupulous sellers on Amazon Marketplace might scam Marketplace vendors who automatically reprice their inventory to meet the lowest price.For example, assume the market price for a specific textbook is $80, but student X doesn't want to pay that much. He knows about automatic repricing, so Student X offers to SELL the book on Amazon for $45, even though he doesn't have a copy. He waits for the automatic repricers to match his price, then he buys it cheap. It seems like this could be just the sort of "insider tip" that could spread like wildfire across college campuses.
ANSWER: I think this type of thing is already happening and will only increase as more students buy books online. I wouldn't be surprised if some "real" booksellers are using this technique to see if they can outsmart (or even sabotage) their competition.
There are several ways to avoid this trap. It's smart for sellers to have a "rule" that any price change over a certain percentage or dollar amount won't be automatic. Here's another way to approach it: Set a minimum price for each item, so you're essentially preventing the price from going below your wholesale price or your target price.
Another safeguard is to eyeball the competing sellers. For example, any time I reprice a book over $20, I check the feedback of the sellers with lower prices. If someone without a track record is lowballing, I'll ignore that listing.
As third-party repricing software has gotten more sophisticated, they allow you to specify these types of rules. For example, AMan has a "Price Watch" feature which prevents major upward or downward deviations in price. And it has a graduated decline feature where you can specify that your price will be lowered by only by a certain amount.
Kevin O'Brien, who developed AMan, says there's another perhaps less-common shenanigan some sellers use. The seller will raise their price on a book temporarily, trying to get you to raise your price too. Then they'll come in at a much lower price, trying to get a quick sale while you're at an uncompetitive price.
If anyone has more techniques or tools for avoiding these kinds of scams, please add a comment.
Labels: automation, pricing, software













