Intelligent Repricing Rule: Competitor Conditional Variances
Sections of an intelligent repricing rule include:
- Select Rule Type
- Competitor Conditional Variances
- Price Adjustment
- Floor Price
- Optional Ceiling Price
An intelligent repricing rule uses Amazon competitors’ pricing to determine your listing price. Competitors are other sellers that are listing the same products you are listing on Amazon.
If a product exists with the same condition, the base match price is the lowest competitor price with the same condition. If no competitor product matches your condition, the base match price then goes through other available competitor conditions starting with New, Refurbished, and continuing down through available conditions. After a condition is found, the base match price will be the lowest price within that condition.
If you have a product listed with the condition Used; Good and the base match price, and a competitor has the same product in the same condition at a lower price, the competitor price is used. If a competitor does not exist with the same condition, the system checks for a competitor with the next condition, which is New. If a competitor is found with that condition, the lowest price is used.
Configure competitor conditional variances
Define your condition variances in the Competitor Conditional Variances section.
For Conditional Variance, choose an option:
-
Use all competitor's product conditions- (Default) Choose when you want your product to compare against any available condition (if a match does not exist for the condition you are listing). -
Use Only Matching Competitor's Product Condition- Choose when you want your product to compare only against competitor’s products in the same condition. If no match exists, the product is priced at the Magento Price Source defined in your Listing Price. -
Apply Variance (if competitor's product condition differs)- Choose to first try to compare against your matched product condition. If no matching condition exists, a variance (as a percentage) is applied relative to your product condition and the lowest competitor’s condition.When the Apply Variance feature is chosen, additional variance fields display for each of your Amazon conditions. This feature allows you to use intelligent repricing rules when you offer products that are in a different condition than your competitors. To understand the calculation behind conditional variance, you must first understand that all variance is determined from a base match price.
Conditional variance options that appear are based on your listing settings for
Conditionthat are mapped to condition values using a Commerce product attribute. For all mapped conditions, you can define a variance percentage of 1-100. The exception is collectibles, in which case a percentage greater than 100 may be applied.
Options:
- Use all competitor’s product conditions - If a match does not exist for the condition you are listing your product with, this option matches against any available condition. It first attempts to match your condition, and then works its way from the
Newcondition toUsed; Acceptable. - Use only matching competitor’s product condition - This option matches against your product’s condition. If no match exists, the product prices at the Magento Price Source.
- >Apply variance (if competitor’s product condition differs) - This option first tries to match against your product condition. If no matching condition exists, it applies a variance (as a percentage) relative to your product condition and the lowest competitor’s condition.
The conditional variance options that appear based on your listing settings for Condition that are mapped to condition values using a Commerce product attribute. For all mapped conditions, you can denote a variance percentage of 1-100. The exception is collectibles, in which case a percentage greater than 100 may be applied.
This feature allows you to use intelligent repricing rules when you offer products that are in a different condition than your competitors. To understand the calculation behind conditional variance, you must first understand that all variance is determined from a base match price.
Calculate the conditional variance base
- Base Match Condition Variance (BMC) = The variance for the condition of your base match price competitor. Using the earlier example, BMC is the variance for the
Newcondition. - Merchant Condition Variance (MCV) = The variance for the condition of your product. Using the earlier example, MCV = the variance for the
Used; Goodcondition. - Base Match Price (BMP) = $7.99 (explained above)
The formula for calculating conditional variance base is as follows:
Example
The conditional variance settings are as follows:
- BMC = 100 (Competitor condition = New)
- MCV = 80 (Merchant condition = Used; Good)
- BMP = $7.99 (Base match price = The lowest price of the matched competitor condition)
Using the conditional variance base calculation from above, your conditional variance base = $6.39. This calculation is the competitor price source used for your price rule actions, explained further in Price Adjustment.