Repricing Methods and Strategies for FV360 Explained

Repricing Method	Optimization Strategy	When to Use	Description
Buy Box	Increase margin, maintain unit sales	When competing for the BB	Enables sellers to win the Buy Box at the optimal price, such that it will yield the maximum overall profit. This optimization strategy is capable of assessing the tradeoff between the sales velocity and margin at every repricing iteration and uses this assessment to determine the optimal price point. This strategy is the best default strategy when competing for the BB
Buy Box	Maximize unit sales, regardless of margin	When competing for the BB	We have made enhancements to the “Dominate the BB” repricing method. This repricing method will now weigh more heavily on price elasticity/consumer demand rather than focusing mainly on winning the Buy Box. This means that once we win the Buy Box we may price more aggressively to win more sales. Note: we may engage in price wars if necessary. When utilizing this repricing method, it is critical to review your floor prices as we may test prices below the current BB price to maximize unit sales.
Buy Box	Increase unit sales, maintain margin	When competing for the BB	A new repricing method that is revenue-focused and allows sellers to achieve higher sales velocity by exploring lower price ranges, while avoiding price wars. This strategy is less aggressive in lowering price than “Maximize unit sales, regardless of margin.”
ProductSphere	Increase margin, maintain unit sales	When owning the BB	ProductSphere’s method enables optimizing pricing for the overall demand. The ProductSphere algorithms look at the multiple factors such as competition, discoverability, seasonality, and consumer demand to build dynamic demand curves. “Increase margin, maintain unit sales” is a Profit Optimization strategy that targets price optimization, yielding optimal overall profit. If competition is detected on the listing, by default we will enable the Buy Box (Increase Margin, Maintain unit sales repricing algorithm) until the competitor is off the listing. This automatic change can be configured on the Advanced section of the slider as well as in the configuration file. This repricing method is the default algorithm and best for most products with no competition. This strategy optimizes overall profit through margin increases.
ProductSphere	Increase unit sales, maintain margin	When owning the BB	ProductSphere’s method enables optimizing pricing for the overall demand. The ProductSphere algorithms look at the multiple factors such as competition, discoverability, seasonality, and consumer demand to build dynamic demand curves. “Increase unit sale, maintain margin” is a revenue optimization strategy that enables price optimization which yields optimal overall sales. If competition is detected on the listing, by default we will enable the Buy Box (Increase unit sale, maintain margin repricing algorithm) until the competitor is off the listing. This automatic change can be configured on the Advanced section of the slider as well as in the configuration file. This repricing method is revenue focused and allows sellers to achieve higher sales velocity by exploring lower price ranges. This strategy is less aggressive in lowering price than “maximize unit sales, regardless of margin.”
ProductSphere	Maximize unit sales, regardless of margin	When owning the BB	This new repricing method will price very aggressively to win more sales at the expense of margin. This repricing method is best used for product liquidation or product category domination where margin is not a consideration. We will explore price points that result in the highest unit sales.
ProductSphere	Follow Competitor	When owning the BB	This strategy enables to tag price to a particular competitor product in a certain ratio and will update the price when the competitor price changes.
Fixed Price	Fixed price	For products where you do not want to change the price dynamically	Enables setting the product to the fixed price.
Inventory Velocity	Target Velocity	This is an inventory-oriented strategy. Regardless of owning (most common) or competing for BB, use this strategy when you want to control inventory velocity.	Inventory Velocity method enables repricing based on the inventory velocity rather than demand or buy box competition. Target Velocity strategy is useful if a customer wants the pricing strategy to reflect their inventory situation, by selecting target velocity based on inventory availability. This strategy helps to prioritize inventory velocity over external factors such as demand or buy box competition. This is a good strategy for someone having limited or excess inventory, which needs to be moved at a certain pace.
Inventory Velocity	Liquidation	This is an inventory-oriented strategy. Regardless of owning or competing for BB, use this strategy when you want to liquidate the inventory by a certain date.	Inventory Velocity method enables repricing based on the inventory velocity rather than demand or buy box competition. Liquidation strategy is useful if a customer wants the pricing strategy to liquidate the inventory by a certain date. This strategy prioritizes on-time liquidation over profitability and revenue targets.