The most crucial step is this one. Set the lowest and maximum prices you're willing to sell your products for, then leave the rest up to your repricer! Based on the actions your rival takes, your Amazon repricing tool will adjust the prices of your products while maintaining within the stated range.
Setting minimum and maximum prices helps prevent the prices of your products from dropping too low. Your profit margin won't have to be sacrificed. The best aspect is that your repricing tool will automatically raise the price of your goods when demand for it increases and your competition runs out of stock.