Huge Issue with Competitive Pricing
In the last week I have 4 products where the competitive pricing dropped over 20% removing all sellers. Currently 3 of the 4 products show no featured offer or sellers and one of them is the manufacturer of the product. The fourth product another seller lowered their price from over $60 to $52 to meet this arbitrary threshold. Their competitive pricing is below msrp in some cases which shouldn't be allowed. At $52 we make no money.
I understand reducing price gauging and scams but this goes far beyond on that. Our prices are always fair and for all 4 products there were multiple sellers with prices higher than ours. Amazon needs to fix this algorithm, clearly serious bugs in the latest update.
Huge Issue with Competitive Pricing
In the last week I have 4 products where the competitive pricing dropped over 20% removing all sellers. Currently 3 of the 4 products show no featured offer or sellers and one of them is the manufacturer of the product. The fourth product another seller lowered their price from over $60 to $52 to meet this arbitrary threshold. Their competitive pricing is below msrp in some cases which shouldn't be allowed. At $52 we make no money.
I understand reducing price gauging and scams but this goes far beyond on that. Our prices are always fair and for all 4 products there were multiple sellers with prices higher than ours. Amazon needs to fix this algorithm, clearly serious bugs in the latest update.
4 replies
Seller_CW0P5hgbsiqWX
Here is my Paul Harvey story about Amazon Selling and Competitive Pricing.
Amazon selling is very easy and couldn't be any simpler, but no one will tell you the secret Amazon uses for its own for success. Amazon knows this secret better than any other seller and works very hard to keep it from being known, because when the secret is out of the bag, things will change.
Amazon is very good at showing sellers what a good competitive price would be for the products they sell. Why there are several software companies that, for a fee, can do the same. With all the hype around them, they almost sound like a necessity to have when selling online.
Amazon suggests using a lot of words in a title to help sellers find your product better. But if this is the case, how come the seller of the product cannot find their own products when viewing the site as a buyer? Is the real reason simply to keep buyers from finding your listing?
Amazon is very good at offering advertising campaigns to increase your slow sales, no sales, problem. That way, sellers will keep their selling price high, with the potential of more buyers seeing their offerings. Offered are A+, deals, coupons, price discounts, promotions and more, all to boost your sales. But do they really work?
Strangely enough, you do not see Amazon's own products displayed in that good competitive price range, nor do you see Amazon actually using the advertising methods sold to sellers. Why, because Amazon knows the secret is not in those add-on strategies offered for sale. The advertising programs offered are to increase Amazon's bottom line, and keep the secret hidden. While sellers naturally have an internal desire to succeed, many focus on all the hype surrounding these advertising addons, while Amazon focuses on something else, the Buyer.
So, what does the buyer have to do with it? Well, the buyer's action is the secret. Amazon knows that the lowest price offering for any product will always sell before the higher price offering of the same item. When a buyer clicks on a product and clicks see other sellers, the more the buyer scrolls down the offerings, the higher the price goes up. Subconsciously, after a few tries, the buyer will make the their selection from the top three lowest price offering.
Sellers following Amazon suggestion about long titles containing important product information can’t find their product and neither can the potential buyer. A short-to-the-point 3-5 word title is always the best, as the browser search engine can find then on the first try.
Amazon wants 3rd party sellers to sell at a higher, (so-called competitive) price, spam their titles, and if your product doesn't sell, buy some advertising from Amazon to help it along. All of these Amazon suggested strategies keeps those sellers away from the Amazon offering, and the lowest price offering. So, while the sellers are constantly watching their (always Higher) competitive pricing, advertising program, and what other sellers are doing, Amazon and the sellers with the lowest price offerings are selling away 24 hours a day with no problem. And now you know the rest of the story.
Seller_24FzucbyGtgZS
Its called "price fixing" and is illegal - but no one is going after Scamazon.
Glenn_Amazon
Hello @Seller_V5h5SD1JDWHdS,
I'm sorry you have had these difficulties with the pricing policy. If you provide your most recent Seller Support case I can provide your information to our internal teams to see what escalation options exist. Thank you for your understanding.
-Glenn
Seller_qddTCq63VG40m
if you see a product and there has never been a 3rd party seller to win the buy box in over 3 years does this mean they Will issue IP compliant?