Pricing Fallback Strategy

This article covers what a pricing fallback strategy is and when it is activated. The settings for your pricing fallback strategy can be found on the "Profit Protection" page when you are setting up for your pricing strategy.

There are times when an item's assigned pricing strategy does not have any qualified competitors to reprice against. In these scenarios, your pricing fallback strategy will kick in. For example, if you are using a Buy Box strategy on Amazon and there is no Buy Box available for your item's ASIN. Our system will then rely on the pricing fallback strategy you've selected to determine the appropriate price for your item.

You can select your Fallback strategy within your Pricing Strategy Settings under "Profit Protection":

Pricing fallback strategies:

1. Preferred Price

1. 1. You set a preferred price on a per-sales channel basis (i.e. one Preferred Price for Amazon and a different Preferred Price for Walmart) in the Pricing Manager or via a file upload.
   2. Your item's price will be set to the Preferred Price until there are qualified competitors for your main pricing strategy to reprice against.
   3. For more information on Preferred Price, CLICK HERE.
2. Pricing strategy
   1. You can create a separate pricing strategy that we will actively reprice with if your primary strategy lacks valid competition. 
   2. You can create as many strategies as you would like within Marketplace Management but you can only select one strategy as your Fallback strategy at any given time. 
   3. You cannot select Velocity Pricing or Mirror Pricing as a fallback strategy at this time. 
3. None

1. 1. Your item will stop repricing and will remain at its current price until there are qualified competitors for your primary pricing strategy to reprice against

Common Scenarios

1. The Buy Box is not available for a particular ASIN and your primary strategy is focused on capturing the Buy Box

• Preferred Price
  • Set your preferred price to a competitive price point where are you still capturing an acceptable ROI if your item is purchased
• Pricing Strategy
  • This will give you the best chance at capturing sales while no Buy Box is available
  • Apply a Target Rank method that is focused on being the lowest price for your item's condition.

2. You are competing against a single competitor using a target rank method and they run out of inventory

• Preferred Price
  • In the event that there are limited competitors on your ASIN you will want to set your preferred price to a higher price than you would normally sell your product for if you were competing against other sellers but low enough that buyers will still purchase your item and not deem the price unreasonable.
• Pricing Strategy
  • If there are a limited sellers then you will most likely achieve the BuyBox automatically after the competition is gone. Select the Algorithmic BuyBox method to not only focus on keeping the Buy Box, but also increase the price in an attempt to generate the highest ROI possible.