In this article, we're going to look in detail at the Velocity Funnel of the Sales Rule, if you'd like a general overview of Sales Rules you can find that here.
Note: Sales Rules are currently only available for Amazon but are coming soon to other channels.
What are Velocity Sales Rules & how do they work?Velocity Sales Rules allow you to change the price of your product based on the velocity of your sales. When a Sales Rule runs, it will look at your chosen Ranges, and if one applies, Repricer will apply your desired price change.
These rules will compare your sales over your chosen period. For example, your sales have increased by 20% over the past 7 days. Regarding the period of days Repricer reviews, Repricer will compare the period you set to the previous period of the same number of days. For example, if you select 7 days, Repricer will compare the past 7 days to the previous 7 days. By increasing your price when sales are high or decreasing your price when sales are low you can take advantage of volatility in the market. You can even add up to 20 different ranges to your rule. Let's take a look at the options you can set and what each is,
Note: By default, your Sales Rule will look at the money made from your sales. You can use your Settings to change your rule to instead look at the number of orders received.
- Number of Days: This is the number of days Repricer will look at when your rule is run
- Percentage change: This is the percentage of the difference between your chosen number of days and the previous period of the same number of days.
- Increase / Decrease: If you would like your price to increase or decrease
- Value: By how much you want your price to change by
- Percent / Amount: If the value you have set is a percentage or currency amount.
Note: Sales Rule ranges will be checked in turn, and only the first to match will apply. That means it's important to keep your ranges in order, going from the highest percentage to the lowest to ensure each range is checked in turn.
Velocity Sales Rule Use Case & ExampleLet's consider the fictional company of DiamondDiscs. They sell CDs and understand that at times there can be spikes in demand depending on what happens in the world of pop. When a waning star appears in the papers, sales for their CDs are sure to spike!
To ensure they can take advantage when this comes DiamondDiscs setup a Velocity Sales Rule which will jack up your price if sales increase considerably in a 24-hour period. They then allow their price to drop back down gradually as the spike reseeds. Here are the ranges they've used,So, let's take a look at two example products, the first, 'Legends of K-POP' has suddenly seen a spike in sales while the second, 'K-POP Stars '23' isn't selling so well. Let's take a look at what happens with each.
Legends of K-POP : Sales have increased by 95%Now we know the sales for Legends of K-POP have spiked by a large 95% in the past 24 hours, fantastic! So what will our sales rule do? It will work our way down our ranges, one by one until it finds the first that matches,
Sales have grown by more than 500% Sales have grown by more than 100%
- Sales have grown by more than 50% ✓
So, in this case, as our sales have grown by less than 100% but more than 50%, it fits into the 'by more than 50%' range. This range's settings are triggered causing our product price to increase by 25%.
For our next example, we do the same as above, we work our way down the ranges until we find one that matches. First, we go through the gown ranges, then the decline ranges,
K-POP Stars '23 : Sales have decreased by 15%
Sales have grown by more than 500% Sales have grown by more than 100% Sales have grown by more than 50% Sales have declined more than 100% Sales have declined more than 50% Sales have declined more than 25%
- Sales have declined more than 10% ✓
So, in this case, as our sales have declined by less than 25%, but more than 10%, so Repricer applies a price decrease of 2.5% to K-POP Stars '23.
Note: In the event that no ranges match, your product's price will not change.
Sales Rules SettingsIn order to fine-tune how your Sales Rules are applied Repricer has a number of Settings you can use to control what data is used, when your rule runs and even target specific physiological price points. Learn more about these various settings in our separate Sales Rules Settings article.
Further ReadingLearn more about Sales Rules, how they work and how to assign them here
Learn more about the Volume Sales Rule flow with examples here
Learn more about the various Sales Rules Settings available here