According to Amazon’s guidelines:

"The Maximum Deal price that is suggested when creating a deal takes into consideration recent prices as well as the lowest price from a seller offering the product in new condition. The Deal price can fluctuate if any changes are made to the current price, and you cannot raise the price while the deal is running.”

This all makes sense, but we don’t understand what we are facing right now.

We are brand registered and our offer is the only one on Amazon UK, meaning we fully control the price. We started at £15.99 and gradually increased it to £19.99 over a few months. Since we became eligible for Amazon deals, we have actively used them as a key part of our selling strategy.

At first, when our price was £15.99, we were offered to run deals at £12.73, which was a reasonable 20% discount. As we increased our regular price, the deal price stayed the same at £12.73, which was expected based on Amazon’s guidelines. So far, everything was logical.

However, a few weeks ago, the deal price suddenly started dropping: first to £12.19, then to £11.58, and now, an absurd £11.00.

Between deals, we consistently sell at £19.99, so why does the deal price keep decreasing?

The issue seems to be that each time we run a deal at a lower price, it updates the “recent minimum price”. This means we are disallowing the deal price from increasing, which is expected. But it shouldn’t keep dropping lower and lower like this.

As far as I know, deal prices do not contribute to the Average Sales Price (ASP) on Amazon US, but I assume this is not the case on Amazon UK. If UK deals do factor into ASP, then by running deals at £12.73, we are unintentionally lowering our ASP, lowering our future deal price even further. If this keeps going, does that mean we’ll eventually have a negative deal price and have to pay Amazon extra per unit sold? 😂

Has anyone else faced this issue? How does Amazon UK actually calculate deal prices? Would love to hear any insights!