You’re Not Competing With Sellers Anymore; You’re Competing With Their Algorithms

You're Not Competing With Sellers Anymore; You're Competing With Their Algorithms

Every seller has a nemesis. That one competitor who undercuts them constantly—let’s call him “Penny Guy.” Every time you adjust your price, within minutes he’s one cent lower. It’s easy to imagine him sitting there, refreshing his screen, cackling in some basement in the Midwest, personally dedicated to ruining your margins.

But here’s the thing: Penny Guy probably doesn’t know you exist. His repricer does. He set a rule months ago—”always beat the lowest price by $0.01″—and forgot about it. You’ve been losing sleep over a robot.

Once that clicks, selling online starts to feel very different.

Nobody’s Actually Watching You

Here’s what nobody tells you when you start selling on Amazon or Walmart: you’re not competing with people anymore. You’re competing with whatever rules those people programmed into their software six months ago. The seller isn’t your opponent. Their algorithm is.

And once you understand that, a lot of frustration just… evaporates.

Too many sellers treat repricing like a personal battle. A competitor drops their price at 11 PM and suddenly it feels urgent, like a strategic attack that demands an immediate response. But they weren’t making a move. Their system saw a trigger and fired. No malice. No strategy. Just code doing what code does.

This should actually make you feel better. When Penny Guy undercuts you, it’s not because he outsmarted you. It’s because his repricer has one simple rule and no ability to think beyond it. That’s a weakness you can exploit.

The $3 Experiment

Consider this scenario: you’re stuck in a race to the bottom with two other sellers. Every time you drop, they drop. Classic death spiral. What happens if you do something counterintuitive—raise your price by $3 and just wait?

One competitor’s repricer might not react at all. It’s only programmed to go lower, not higher. The other might eventually raise their price too, because their algorithm is set to stay within a certain range of the Buy Box price. Within a week, everyone could be selling at higher margins. Nobody planned it. The algorithms just followed their scripts.

That’s the thing about competing with algorithms—they’re predictable once you pay attention. That seller who always goes aggressive on weekends? Their repricer probably has a velocity rule that kicks in when sales slow down. The one who never drops below a certain price? That’s their floor, and now you know it.

You can learn a competitor’s entire strategy just by watching their pricing patterns for a few weeks. They basically published their playbook in their repricer settings. Most of them don’t even realize it.

Everyone Has a Repricer. So What?

None of this means you should ditch your repricer and go back to manual pricing. That’s insane—you’d never sleep. The point is that having a repricer isn’t enough anymore. Everyone has one. The advantage now goes to sellers who actually think about what rules they’re setting.

Most sellers set up their repricer once and never touch it again. They pick “aggressive” or “moderate” or whatever the default options are, set a minimum price, and walk away. Then they wonder why their margins keep shrinking.

Your repricer is only as smart as the strategy you give it. If your strategy is “always be cheapest,” congratulations—you’ve built a margin-destruction machine. It’ll work exactly as designed, which is the problem.

Think about repricer settings the way you’d think about hiring an employee. What do you actually want this thing to do? When should it fight for the Buy Box and when should it hold firm? Are there times of day or days of the week where you’d rather prioritize profit over velocity?

These aren’t questions most sellers ask. But they’re the questions that separate people who use repricers from people who use them well.

You Don’t Have to Win Every Fight

The smartest sellers don’t try to win every battle. Sometimes a competitor is willing to sell at a loss—maybe they’re liquidating, maybe they’re trying to boost their account metrics, who knows. You can’t beat irrational pricing with rational strategy. So don’t try.

Let them have it. Set your floor, trust your margins, and wait. Inventory runs out. Sellers give up. Algorithms don’t have patience, but you do.

There’s also something to be said for knowing which products deserve aggressive repricing in the first place. That high-margin item with only two other sellers? Sure, fight for it. But that commodity product with fifteen competitors all running the same aggressive settings? Maybe that’s not where you want your repricer spending its energy. Not every listing is worth winning. Sometimes the best move is letting a product sit at a profitable price and accepting slower turnover instead of joining a race where everyone loses.

This is especially true when selling across multiple platforms. Running a Walmart repricer alongside an Amazon setup means dealing with completely different dynamics. Walmart has fewer sellers on most listings, so the price wars tend to be less vicious. But some sellers just copy their Amazon strategy over without adjusting, which means they’re often more aggressive than they need to be. That’s an opportunity if you’re paying attention.

You’re Fighting Ghosts

The whole game has shifted and a lot of sellers haven’t caught up yet. They’re still thinking about competition as “me versus that other seller.” But that other seller set their rules once and moved on with their life. You’re fighting their ghost.

That mental shift matters more than any specific tactic. When you stop seeing competitors as adversaries making deliberate moves against you, the emotional weight of pricing wars drops significantly. It’s harder to get angry at an if-then statement. It’s harder to feel defeated by a script that doesn’t know you exist.

Once you accept that you’re competing with algorithms, not people, you start making different decisions. You stop refreshing obsessively. You stop taking price drops personally. You start studying patterns instead of reacting to them.

And honestly? It’s more fun this way. Feels less like a grind and more like a puzzle. You’re not trying to outwork anyone—you’re trying to outthink a bunch of if-then statements.

That’s a game worth playing.


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