There is a myth going around that repricers can create a price plunge to zero. This is simply not accurate. The usual market trends, supply and demand, economies, etc. all play a part in how much you want to sell it for, and how much someone wants to pay for it. I have seen a seller sell an item for $20 in one listing, and the the same item for $35 in another listing. They both sell, and yes, the $20 item sold more.
The digital world we live in now just makes everything seem so fast that if you're relying on just human power to keep up, you may be left behind.
I just want to show you a real example here that repricers not only reprice downwards, but upwards as well. Users of repricers are not dumb. There will be controlled settings and rules for repricers. There will be minimum prices set. Stock availability matters. Nobody is waking up to find all his items selling at 50 cents.
Here is an item that is a nail polish:
Lets have a closer look:
Of course it sells better, you say. Its a cent less than his lowest competitor.
But wait. The repricer actually RAISED his price from his original $16.50 to the current $16.92
Lets see the charts:
I'd say upward reprice picked up extra margins instead just selling well by staying at his lower price. Did you also notice another seller with 2 listings at different prices of the same product?
Good repricers are designed to max your margins, and maintain market-share.
They have good price rules and always fall within min and max price set. If a competitor has no quantity, they are ignored, and good repricers will jump to the next in line.
See where quantity counts in another example:
So properly set up, (just like fire can be a friend or a terrible foe) a repricer can be a very indispensable tool for your business, making sure you do not lose sales to your competitors yet maintaining the best margins possible - and not necessarily a weapon of mass price-plunging.