The Liquidation Repricing Method

What is the Liquidation repricing method?

Is there a Minimum Price Marker to avoid losing money on?

Why Am I Not at My Floor Price, When I Set My Products to ‘Liquidation’ Repricing?

What is the Liquidation repricing method?

When it comes to repricing, Liquidation is the term used to sell out of a product (or groups of products) by a certain date.

How does the 'liquidation' repricing method work?

The Liquidation repricing method (AKA 'Target Out Of Stock Date') is based on the Target Velocity method. The difference is, that with 'Liquidation', it is the repricer that determines the optimal velocity target, automatically. This is calculated according to the (Total items quantity)/(days until liquidation date).
This determines what the required velocity per day is in order to liquidate by the 'out of stock date' you define.

The velocity target is set for 24 hours at which point, the calculation is run again.

This ensures that the repricer reacts optimally to cases where the velocity set was under or overachieved and will set a new velocity accordingly.

(*Premium & Enterprise plans only)

Key Qualifiers

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

Specifically, Liquidation mode (target out of stock date 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:

1. The number of items sold in the past 24 hours.

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

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

Advanced Repricing tab

You can see the 'Current State' in the 'Repricing' -> 'Advanced Repricing' sub-tab

You will be able to see the Current State = "Velocity between [Minimum value] and [Maximum value]".

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 the current state= Price will increase by 2% (configurable)

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

3. If Target equals the current state= Price will not change.

This calculation happens ONCE daily, meaning there may be a price change (or not) *once daily.

How to set an item on Liquidation

For individual items, use the product Slider

The Price section
Configure Liquidation from the drop-down
Input the desired date till which you would like to liquidate your inventory
Click on the Save button

You will now be able to view your items repricing by velocity in the Repricing Tab under the sub-tab Advanced Repricing. View recommendations in the Recommendations field, and export a report showing your complete listings with price velocity.

For multiple items in Bulk

Export the Inventory & listing configuration file
Click on the Listing sheet
In column Repricing Method, choose Target velocity
In column Repricing Method Value, input the desired number of items to be sold per day
Save the file and import it.

Is there a Minimum Price Marker to avoid losing money on?

Feedvisor will always reprice within your set price range, i.e your Floor and Ceiling prices.

This is applicable 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 take caution before clicking 'Save' when setting a 'Fixed Price'

Why Am I Not at My Floor Price, When I Set My Products to ‘Liquidation’ Repricing?

The liquidation repricing method is intended for assisting liquidation for items with no competition. This repricing method is programmed to assess the price needed to liquidate the product in time to meet the defined Target Out of Stock date. It will not simply decrease the price to the floor, it will algorithmically and methodically decrease the price in a way which will not cause too much noise to the listing and potentially set of any ‘alarms’ on Amazon’s end which may result in either a suppressed buy box or the listing becoming inactive.

Should you feel the price is not decreasing rapidly enough you can set a more aggressive Target Out of Stock date. In addition, you can contact support and ask to have the number of repricing iterations for the products you are liquidating. This can assist in more aggressive price movements.

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