profit peak announcement automated pricing optimization

Introducing Profit Peak: Automated Pricing Optimizer

andrew browne Product Listing Optimization, Profit Peak 15 Comments

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Behind the scenes at Splitly, we have been working away creating the most powerful solution for automated pricing for Amazon private label sellers. So it is with great pride that I would like to announce a new tool that we are offering to all of our users… enter Profit Peak!

Powerful Amazon Automated Pricing Optimization

We set out to build a reliable automated pricing optimizer for FBA private label sellers. One which would enable sellers to simultaneously optimize their product pricing, increase profits, maintain stock levels, without any time consuming work on the sellers part.

Splitly users are already optimizing many elements of their product listings to great effect, and seeing some incredible sales and profit increases. This includes running A/B experiments on price, images and product copy. But when it comes to price, we wanted to add some extra functionality to the Splitly toolkit to enable FBA sellers to maximize their time and profits.

Let’s take a look at the power of Profit Peak:

  • Automatically tests random prices based on the current best known price
  • Recalculates the best known price constantly, so Profit Peak knows where you can get the maximum profit
  • Reacts to sudden supply/demand events, which can include competitor movements or seasonal fluctuations
  • Handles stock quantities effortlessly, helping you to run out of stock on a specific date and reduce the risk of going out of stock
  • Set it and forget it – Profit Peak does all the hard work for you, giving you more time to prioritize other things

 

Profit Peak In Action

We’ve been furiously testing the Profit Peak tool before we launched it this week and I want to share some of the results with you, as well as give you an insight into what the tool looks like.

First of all, it is worth mentioning that to set Profit Peak up for your product is easy. You will need to enter the following information:

  • Fees & Costs (such as your FBA fees per order, referral fee and unit cost)
  • ASIN (optional)
  • Min – Max price (optional)
  • Stock Deplete Date (optional)

required fee information in profit peak

 

This is all information you will have ready and waiting for you as a private label seller and it only takes a couple of minutes to dig it out of your (nicely organized, of course) spreadsheets and enter into Profit Peak.

Example #1: Optimum Price Was Lower Than Original

This Splitly user had a price of around $38.50 before turning Profit Peak on. The product was performing well but as we later find out, this price was certainly not optimum.

At the moment, optimum price is $34.46, but this will fluctuate based on demand and stock levels. You can see in the following graph from Profit Peak how the optimum price has been continually tested and automatically altered since the beginning of November to the start of December:

optimum price chart profit peak
And also take look at the pricing scale in terms of performance and sales:

price performance table profit peak

Due to the fact that Profit Peak will be continuously testing the best known price, the price that has had the most sales historically may not always be the optimum price at any one point in time. But, by proactively finding the best price and automatically repricing your product, you will always remain ahead of the game.

Particularly during the festive season, for example, Profit Peak will handle supply and demand changes instantaneously.

Although many factors can be taken into account for increases in sales and profit, (such as PPC and promotions), you will soon be able to see how Profit Peak can assist you in improving your bottom line. Particularly if you have products that have been selling for several months, you will be able to see your sales history reported directly within Profit Peak.

sales history profit peak

Example #2: Optimum Price Was Higher Than Original

Profit Peak will not just decrease the price. In some cases, the best price may actually be higher than what the product was listed at before firing Profit Peak. Here’s an example of where this happened with some of our beta tests:

optimum price was higher than original price Profit Peak

This Splitly user had their price at around $13 before turning Profit Peak on, and the best optimum price at the time of writing was over $14 – a whole dollars difference that can make a large impact on your sales.

optimum price at any given point in Profit Peak

The tool clearly states the optimum pricing fluctuations over the past month, which is useful to see how the pricing trends have shifted. In this example, the price has fluctuated by 11.73%:

pricing fluctuations over the past month

 

It will also show you the current price that the product is selling at – this will be constantly shifting, in the direction of the most optimum price:

current price changes to be closer to the optimum price

 

So in this example, we have seen how Profit Peak could potentially increase your price instead of decrease it, as well as how the tool shows you the current and optimum prices as well as monthly fluctuations.

This example also shows how quickly Profit Peak will react when it realises that your price is not the best known price, and continue to test and automatically alter the price accordingly.

If you’re a data nerd and you really want to know every move Profit Peak is making on your behalf, there’s the option to download the Raw data in a .CSV file, so you can see each and every update. We’ve got you covered!

 

Is Profit Peak A “Repricer”?

Profit Peak does function a little bit like a repricer, but has some distinctive differences (and advantages) over the average repricer, such as the one you can find within Seller Central, or other third party repricers.

So what is a repricer?

A repricer is generally a tool that helps sellers who are competing for the “buy box” alongside other sellers, to try and win more sales. Here’s an example below of where several sellers are competing for the yellow buy box that Amazon owns:

 

repricers competing for the amazon buy box

 

Amazon will rotate products that are within 2% of the lowest price, and that have good seller feedback, in this buy box. So in this case, these are wholesale sellers, who all want to get more sales by out pricing their competitors and by getting more time in that buy box. These are sellers who are competing with other sellers on the same listing!

Most consumers don’t even realise that this is happening, and are often looking for the best price and will hit the clearest call-to-action.

And why is Profit Peak different?

By comparison, Profit Peak is for sellers who have listing control, and are selling FBA or private label products. So in short, Profit Peak provides automated pricing for sellers who are not competing on price within the same listing, but with everyone on Amazon.

example of a private label listing that could use profit peak

Essentially, for private label sellers, you will be able to maximize your chances of being competitive and staying ahead of supply and demand compared to everyone selling similar products on Amazon. This is a powerful advantage to have (alongside Split Testing your Amazon listings).

 

How Profit Peak can Benefit You!

How profit peak can increase profits and save time

 

Try Profit Peak with Splitly

Profit Peak algorithms have been crafted with great care to ensure they can take care of a number of situations automatically. It works to your advantage when there are supply and demand changes, such as over the festive period. But it can also get you out of a tight spot and prevent you from running out of stock.

Tip: Each product you set up on Profit Peak will use up one of your concurrent test allowance. If you have a Parent ASIN with many siblings, you can sync these together, so they would still use one of your test allowance. Check out our pricing and plans here

Importantly, Profit Peak’s main responsibility is to be reactive when you would otherwise miss an opportunity, and contribute towards increased sales velocity and profit.

Splitly is the most sophisticated Amazon Split Testing software on the market, now with the powerful addition of a sophisticated automated pricing optimizer for private label FBA sellers.

Try Splitly and Profit Peak for yourself!

If you are already a Splitly member looking for help in setting up Profit Peak, you can always email us at [email protected].

 

 

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andrew browne

andrew browne

Code Wizard at Splitly
Software developer and Amazon seller from Ireland. Constantly searching for travel adventures, greasy burgers, and all things tech.
andrew browne

Comments 15

  1. Sounds great, Andrew and looking forward to trying it. One question… You should usually only test one thing at a time. I’m testing my main product photo right now. I’m assuming I should wait for that test to finish before running Profit Peak and then when running Profit Peak, not run any split tests. Correct?

    1. Post
      Author

      Hi Jay,

      Thanks for reading. Great question… you are correct yes, it is best to test one thing at a time. In fact, Splitly won’t let you run Profit Peak and an AB test on a child asin at the same time, even if you’re AB testing a different field!

      Would love to hear how you get on with Profit Peak once your main photo Split Test has ended though!

      Cheers,
      Andrew

  2. I have been using profit peak for several days now , and its absolutely amazing .
    My margins are up and my profits are up , so far cant complain.
    The question is , whats next ? after 2 weeks of running profit peak , will it be wise to a/b test a main photo and then come back to the repricer ?
    Also , in what scenario will I use a/b testing for price if I have profit peak , isnt it useless now ?

    1. Hi Or,

      Glad to hear that you have had success with Profit Peak!

      Once you have honed in on a profit-maximizing price point, you suggest a good tactic–optimize anothe aspect of the listing, and then focus on the price again. Depending on the seasonality, market conditions, or competition of your niche, there will be a dynamic nature to pricing that makes it best to continue using Profit Peak. I’d love to hear the results!

      Gen

  3. Andrew,

    Thanks for great insights into Profit Peak.
    I would appreciate if you could explain why in the Profit Peak settings for Min and Max price there is a recommendation to leave Max Price box blank.
    1) Is this considered the best practice to leave Max Price blank?
    2) Are there any other cases when it makes more sense to fill in Max Price?

    Thank you

    1. Hi Alex,

      Great question 🙂

      We actually have our customers fill that in now, but really it’s just a precaution, you can fill it in as whatever price you are comfortable with. Just don’t leave it too low, which would prevent profit peak from trying prices higher than that, and perhaps missing out on the actual optimum price point.

      Thanks!

  4. I’ve been trying profit peak and have been very happy with the results. I am wondering how often profit peak updates or changes the price. Is a few, dozens, hundreds?

    1. Post
      Author

      Hey Javier,

      Thanks for your comment and so pleased to hear Profit Peak is working for you. To answer your question, it will update your pricing every hour, testing various price points to find the optimum price for your product. If you leave Profit Peak running on your product, it will work reactively with any seasonal changes, competitor activity and so on.

      Hope this helps!
      Andy

  5. For the Starter Pricing Plan, we can run Profit Peak on 3 products simultaneously. For our products, one Parent ASIN has many Child ASINs. For example 1 product might have 6 different sizes and 5 different colors (30 Child ASINs). My question is by “Profit Peak on 3 products simultaneously” we are talking about 3 Parents (including all their children ASINs) or will I have to start at the Enterprise Pricing Plan and even with that plan will only be able to test 3 of my Parent ASINs (having 30 Child ASINs each)?

    1. Post
      Author

      Hi Cedrick,

      Great question. Profit Peak actually works with Child ASINs, so you would need to go in and enable Profit Peak for EACH child.

      From here, you can group together your Child ASINs that belong to the same parent and sync them (using the child ASIN sync feature). This would use up one of your concurrent test allowance for the whole group of siblings.

      So if you have three parent products with several siblings, the starter plan would be suitable to get started with Profit Peak.

      Hope this helps!
      Andrew

  6. We just started on the Starter Plan, were able to use the child ASIN sync feature and it works great! When using Profit Peak for the same ASINs but on a different platform (amazon.co.uk instead of amazon.com) do we have to enter a different group name in the “Child ASIN Sync” field because its a different platform? For example all the Child ASINs grouped under AAA_US for amazon.com and grouped under AAA_UK for amazon.co.uk ? Or can they be grouped under the same group name independently of the platform itself?

    1. Post
      Author

      Hi Cedrick,

      You can use the same group name for another marketplace, but the price won’t be the same across these markeplaces, just for the child ASINs in the same marketplace. Products in other marketplaces are treated separately as they have different currencies, fees etc.

      If you need any help with it, just reach out to us at [email protected], or message in the chat box 🙂

      Andrew

  7. Hello, I’m interested in Profit Peak, but curious as to how/if it works with sale prices. Like many Amazon sellers, I routinely run sales on my products, so the list price is rarely the sale price. Does PP work for ongoing sales, and do you still have to go in and set new sales dates periodically? Thanks!

    1. Hey David,

      We understand that Amazon sellers like to routinely run sales for their products, so we built Profit Peak with the option to set your price to a fixed within a certain timeframe so as to not keep your price from moving. All you need to do is set a start date, end date and a desired price during that interval and Profit Peak will keep your price constant during that period.

      Hope this helps!

      Kym

  8. attempting benefit top and have been exceptionally content with the outcomes. I am thinking about how regularly benefit crest updates or changes the cost. Is a couple of, handfuls, hundreds?

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