The Target Velocity Repricing Method

• What is the Target Velocity repricing method?
• Key Qualifiers
• How to set an item on Target by Velocity?
• Can I set a Minimum Price to avoid losing Negative Profits?
• Why Am I Not Achieving My Defined Target When I Set My Products to 'Target Velocity' Repricing?

What is the Target Velocity repricing method?

The Target Velocity repricing method automatically adjusts prices to achieve a user-defined sales velocity target (units sold per day). The solution works on the premise that price impacts demand. The algorithm will automatically adjust the price in order to reach the velocity target.

By creating a more predictable sales velocity, this method allows for more accurate purchasing decisions and replenishment forecasting.

(*Premium & Enterprise plans only)

Key Qualifiers

Repricing by velocity is best utilized for items with no direct competition (private label, white-label, or other exclusive/unique products). This gives the algorithm freedom to increase and decrease the price carefully, making it easier to slow/speed up sales velocity based on the price.

Specifically, Liquidation mode will work on both competitive and no competition items. Items with competition might sell faster than target out of stock date, due to the competitive landscape preventing an increase in price) BUT it is usually NOT a concern with liquidation items.

When an item is set to Repricing by Velocity, the algorithm takes into account average daily velocity over three different time periods:

The number of items sold in the past 24 hours.

Average of items sold per day over the past 7 days.

Average of items sold per day over the past 14 days.

 

These three values will define the 'Current State' range and defined as the average of them.

• You will be able to see current state = "Average of the three values of average velocity per 24H, 7D, 14D".

• Then, you also have the target velocity you set, which we will call 'Target'

The relationship between the 'target' and 'current state' will determine which one of three possible price change scenarios will take place:

1. If Target is smaller than current state = Price will increase by 3% (configurable)

2. If Target is larger than current state = Price will decrease by 3% (configurable)

3. If Target is within the min-max range of current state = Price will not change.

This calculation occurs ONCE per day, so by default, there will be a maximum of one price iteration applied per day. 

How to set an item on Target by Velocity?

For individual items, use the product Slider

1. The Price section
2. Choose Inventory Velocity as the method
3. Configure Target velocity from the drop-down
4. Input the desired number of items to be sold per day
5. Click on the Save button
   

You will now be able to view your items repricing by velocity in the Repricer Tab under the sub-tab Repriced products.

View recommendations in the Recommendations field, and export a report showing your complete listings with price velocity.

For multiple items in Bulk

1. Export the Inventory & listing configuration file

2. Click on the Listing sheet

3. In column Repricing Method, choose Velocity

4. In column Repricer Strategy, choose Target Velocity

5. In column Repricing Method Value, input the desired number of items to be sold per day

6. Save the file and import it.

Can I set a Minimum Price to Avoid Negative Profits?

Feedvisor will always reprice strictly within your set price range, i.e your Floor and Ceiling prices.
This applies to all methods of repricing, including 'Liquidation', 'Target Velocity' and 'Buy Box Optimization'.

The only exception is when using the 'Fixed Price' option which can be set outside of your price range.

*Please be cautious when applying a 'Fixed Price' configuration to ensure the effective profit at the desired price aligns with your business strategy/goals.

Why Am I Not Achieving My Defined Target When I Set My Products to 'Target Velocity' Repricing?

While the repricer is making its price direction decisions based on the defined Target Velocity, the absolute volume of daily sales is subject to popularity, stickiness, etc.

 It is important to set realistic targets when using this repricing method and ensure it is used to reprice products without direct listing competition only.