Are you an Amazon seller trying to optimize your pricing strategy? If that's you, perhaps, you want to see what Seller Snap can offer your business?
Well, rest assured, you're in the right place. In this review, we’ll cover everything you need to know about Seller Snap – more specifically, how the product works, its key features, and its pricing.
Hopefully, by the end of this Seller Snap review, you'll have all the info you need to decide whether this software is right for your Amazon business strategy.
Let's dive straight in…
Seller Snap Review: About Seller Snap
As we hinted at in the intro, Seller Snap is an app designed for Amazon sellers. Using game theory and AI, he app helps sellers optimize their Amazon store by automatically and constantly repricing your products on Amazon to get you the buy box at the highest possible price to maximize profits
Game theory is employed by Seller Snap, but initially, it was invented by John Nash in the 1950s. In short, this theory uses mathematical modeling to determine interactions between potential players to understand how players compete with each other. The founders of Seller Snap seized the opportunity to use this theory in an eCommerce setting. That’s why in 2016, they set out to do just that, the result – Seller Snap.
Seller Snap Review: How Seller Snap Works
The type of game theory Seller Snap uses is called a non-cooperative game, meaning that Amazon price matches are determined by seller competition. As such, to achieve the optimum pricing strategy, your pricing needs constantly regulating to compete effectively.
It goes without saying that on Amazon, often we’re competing with hundreds if not thousands of other sellers, making it challenging to analyze all these pricing regimes and respond accordingly.
This is where Seller Snap’s AI could lend a helping hand by doing the majority of the heavy lifting for you.
Seller Snap can predict changes in other sellers’ behavior and automatically modify your product's prices accordingly. This goes a long way to ensure your product hits the Buy Box on Amazon first. For the uninitiated, the Buy Box appears on the right-hand side of the product page and highlights the same or similar products available on other seller’s pages.
With that in mind, imagine that a customer is about to purchase a product, and they see in the ‘Buy Box’ the same product at a lower price; which product do you think they’ll choose? Of course, they’ll most likely go for the more affordable option.
In short, Seller Snap helps to ensure your product offers the most competitive offer in your customer’s ‘Buy Box’,resulting in increased profit margins.
Seller Snap Review: The Pros and Cons of Seller Snap
We've covered a fair amount of info here, so let's condense what we've talked about into a pro-cons list.
First off, the pros:
- You avoid price wars: Price wars occur when companies lower their product pricing to gain an advantage over competitors. Such rule-based repricing strategies can often lead to significant profit loss for businesses. The Seller Snap approach ensures you meet pricing thresholds more holistically by utilizing a flexible pricing strategy. Unlike rule-based repricing which often cuts your profits to the lowest level to make a sale, Seller Snap pushes to get you into the Buy Box to display a more competitive price range.
- Maximize profits: A study by Northeastern University concluded that while only 2-10% of Amazon sellers currently use an algorithmic pricing strategy, 60% of sellers that did capture prices up to $20 to $60 higher than their competitors.
- Less work: As Seller Snap automates your product pricing strategy, you free up your time to focus on other aspects of your business.
- Long-term benefits: Machine learning and AI can adapt your product pricing strategy over time to maximize profit.
- User control: Since Seller Snap automatically updates pricing on behalf of users, to some degree control over prices is left to the algorithm. It’s essential to understand that while AI can consider a vaster range of pricing variables than humans, those variables are still decided by the algorithm's creators. So, the question is – do you think you know more than the Seller Snap team?
- Pricing: While algorithmic and AI pricing software has many benefits, these features inevitably come at higher prices than manual rule-based pricing platforms. Amazon allows you to manually set your own pricing rules for free via Amazon Seller Central.
Seller Snap Review: Seller Snap's Core Features
Seller Snap has three mains offerings, and are as follows:
AI Amazon Repricer
As discussed above, Seller Snap’s most notable feature is its AI Amazon Repricer. Here you can ‘set it and forget it' leaving the Seller Snap algorithm to learn from the competitive environment and make tailored price adjustments to outsmart your competition. No set-up is required by the seller.
Therefore, to understand the true benefits of Seller Snap, you have to first understand the kinds of pricing strategies top Amazon sellers use. Generally speaking, there are two main types of repricing strategy sellers employ:
- Rule-based repricing: This is where you set a list of static rules that inform your pricing decisions. For example, you may have a rule that your prices should always be 10% under your competitor’s price. To compete using this method, you need a whole host of rules to effectively respond to the demands of the market. Not to mention, when new selling trends emerge, your rules need to reflect this. Moreover, this strategy only accounts for competitors' pricing. There may be other factors that ought to affect your pricing margin, such as the customer’s willingness to pay and changes in buyer behavior – to name but a few.
- AI or algorithmic repricing: This is the strategy Seller Snap uses. This method accounts for a wider array of variables such as your inventory, product performance, and other metrics (more about this below). In short, the machine learning used in AI empowers the software to learn from its own pricing strategy and improve over time. It also eliminates the human bias that sometimes crops up in traditional rule-based repricing, and can respond to market trends in real-time.
Custom Repricing Strategies
Seller Snap also offers a range of custom repricing strategies for sellers who have specific goals that they want to achieve. Some of these include:
- Win Buy Box: his approach allows sellers to set the buy box percentage that they want to achieve. The repricer will then drop the price until this specified percentage is achieved.
- Seller fulfilled prime: This approach is specifically for SFP Amazon sellers. These are sellers who fulfill prime orders from their own warehouse. Seller Snap allows you to compete with these sellers by auto-adjusting your maximum price to compete with SFP sellers.
- Follow a related ASIN: ASIN is short for Amazon, Standard, Identification, Number. This is a database Amazon uses to match products similar to your own. Seller Snap allows you to track similar ASIN competitors and outmatch them. The benefit of this strategy is that it can reprice bundled or similar items or labels simultaneously.
- Time-specific pricing: Here, you can change prices based on specific days or hours.
- Velocity-driven repricing: Here, you can program how much product you want to sell, and the software adapts the product’s prices to meet this threshold.
Seller analytics provide real-time data on how well your product sells in terms of revenue and profit, thus highlighting your best and worst-performing products. Seller analytics can also inform you of who your competitors are, providing a breakdown of your FBA, FBM, and SFP competitors. You can also see how you fare against these competitors in the buy box.
Seller Snap also tells you when your inventory levels drop and need replenishing. You can generate advanced data reports on the Premium plan, which includes inventory replenishment data so that you never run out of stock. These reports suggest how much stock you’ll need and how long the stock will last over a given period. But, it even goes a step further by calculating storage fees and telling you when products are close to expiry. Other advanced data reports include data about your product returns, such as how many items have been reimbursed and your return rate.
Seller Snap Review: Pricing
Seller Snap has a 15-day free trial to test out their product. After that, you can choose from one of the following plans:
The Accelerator Program
This plan is somewhat different from the others in that it's specifically designed to help small businesses. By small companies, we mean Seller Snap offers this service for sellers looking to publish under 1,000 active product listings and generate sales of less than $25,000 per month. You can find the full eligibility criteria on their website. But, essentially, it’s a plan offered at a reduced rate for growing sellers.
- Pricing starts at $250 a month for one online storefront
- You’ll get access to Seller Snap’s AI reprice, all additional repricing tools, and extensive seller analytics.
- The program operates on a six-month cycle. If your sales volume increases (above $25,000) after this time, you must upgrade to the Standard or Premium plan. If sales fall below this threshold ($25,000), you may be asked to leave the program or you might be given another six months to improve.
The Standard Subscription
The Standard program is ostensibly the same as the Accelerator program, but your user and listings limits are increased:
- Pricing starts at $500 a month for one online storefront
- This plan facilitates three registered users managing 15,000 listings.
- You receive 24/7 customer support.
The Premium Subscription
- For $800 a month*, you’ll receive everything included in the Standard plan, plus these additional features: advanced metrics – including replenishment data, return data, and information on your sales rank compared to competitors.
- The plan includes three online stores with access for up to ten users managing up to 30,000 listings.
- In addition to 24/7 customer service, you’ll also have a dedicated accounts manager who can offer expert advice tailored to your business.
- You also have access to Seller Snap’s API, enabling you to integrate the Seller Snap app with third-party platforms.
The Unlimited Program
- This plan is best suited to larger enterprises.
- To receive a custom quote, contact Seller Snap directly.
- However, you can expect to be able to manage multiple stores with unlimited users for more than 30,000 listings. Not to mention, custom features based on your business needs.
*All Seller Snap plans are billed on a rolling monthly subscription.
Is Seller Snap The Right Choice for You?
In response to those who criticize AI pricing methods for lack of control, this, in some instances, could be a good thing for avoiding confirmation bias. This is a term used in behavioral finance to describe how people naturally reaffirm information they already know. These tendencies can show themselves where merchants set product prices genuinely thinking it’s the best thing for their business, but they don’t end up reaping the highest possible profits.
We often lean towards strategies that have worked for us before, without using all the data and latest market trends at hand to make the best decisions. Whereas, with AI software, you can account for more variables and reduce this bias to hopefully, launch the most fruitful pricing strategy possible.
If you’re concerned about the legitimacy of Seller Snap’s algorithm, the credentials of the inventors may provide some reassurance. The co-founders bring over ten years of experience in marketplace-based eCommerce, specializing in the Amazon marketplace. You may also find some merit in the long-established field of game theory on which the app is based.
Given these points, there’s certainly evidence to suggest that algorithmic pricing is a legitimate way to increase profits. As such, if you have the budget we conclude that Seller Snap is a good bet for Amazon Sellers. But why not sign up for the free trial and judge for yourself?