It's a way of repricing your items more based on an algorithm to maintain competitiveness, while still keeping you profitable. Please see video -

The first option -- Use Buy Box Algorithm on All items -- it's a Yes or No as far as do you want to apply algorithmic repricing to all items or do you want to be able to turn it on individually per item as needed.

Include shipping costs in algorithm - select yes if you want to include both supplier and competitor shipping costs in algorithm when skugrid is creating your prices. Choose No if you don't.

What is the maximum margin you want to have? Enter the dollar amount that you would like to have as a maximum for your profits as a general rule for all items.

By how much do you want to undercut the competitor's price? Enter the amount you'd like to undercut by... example if the main competitor is listed at 99.99 and you have it set here to undercut by 0.05, your item would be priced at 99.94 as long as you're profitable still.  So enter whatever number you're comfortable with.

Use maximum price if we're unable to beat the competitor?  This means that based upon the maximum margin you set, if skugrid determines that it cannot undercut the competition because you would no longer be profitable, if you set this to yes, skugrid will use your maximum margin that you previously set to create your selling price.  Choose Yes or No here as to whether or not you want to use this function.