How to Solve Amazon Potential High Pricing Error Quickly and Effectively?
As an Amazon seller, you are likely to face high pricing errors at some point. This can be a daunting and frustrating experience, but there are ways to solve the problem quickly and effectively. In this blog post, we will discuss some tips for dealing with potential high-pricing errors on Amazon. Stay tuned for more information!
Table of Contents
- What is a Potential Pricing Error on Amazon?
- Price Gouging Behind Amazon Potential High Pricing Error
- How to Avoid Amazon High Price Errors
- Rule-Based Amazon Repricers Cause Problems, Instead of Solving Them!
- The Best Solution for Amazon Potential High Pricing Errors
What is a Potential Pricing Error on Amazon?
Amazon is known for being a fair and reliable marketplace for sellers and buyers alike. However, there is always the potential for pricing errors – after all, Amazon is run by humans, not robots! One potential pricing error that Amazon sellers need to be aware of is listing items at too low a price. This might seem like a good way to attract buyers, but it can actually lead to Amazon suspending your account.
Deactivated listings based on Amazon’s fair pricing policy baffle many sellers. However, we have found a solution to solve Amazon’s potential high pricing errors. We are delighted to find an excellent solution to one of the fundamental Amazon Seller problems, “Listings deactivated for potential high pricing error.”
According to Amazon’s Fair Pricing Policy, sellers are not allowed to list items “at an artificially low price for the purpose of attracting customers.” So if you’re thinking of trying to undercut the competition by listing your items at a rock-bottom price, think again! Not only will you risk getting suspended from Amazon, but you won’t make any sales anyway.
Price Gouging Behind Amazon Potential High Pricing Error
Selling an essential item during a national emergency/pandemic for a price that is around 10% higher than its usual price can be considered price gouging. Be careful when dealing with selling essential items. There are other simple rules that you need to avoid:
- Keep your reference price reasonable compared to your current price.
- Ensure you read Amazon’s fair pricing policy.
- In case you are an FBM seller, do not raise the shipping price significantly.
Pricing errors are not limited to the necessary checks; there are also more details around the topic. Let’s look at the other reasons in detail.
How to Avoid Amazon High Price Errors
It’s possible to set up Minimum and Maximum prices from Amazon Seller Central. Typically newbie Amazon Sellers use these settings with basic automated repricers. Unfortunately, once the configuration exists, the seller can not remove it. The only way around this, which may not sound very wise, is to make min and max settings so large that it does not create a pricing error.
Amazon Minimum and Maximum Price Validations:
- We started to see this one more, where Amazon claims based on the product market analysis.
- Amazon sets Minimum and Maximum price thresholds that are dynamic.
- Sellers become aware of them once they hit these errors.
The validations don’t apply to every SKU, but it exactly works like Price Gouging when it happens. Our observation results state that Amazon sets the boundaries of price changes even for private labels. They got deactivated during the last six months. Suppose an Amazon seller has a product listing for Private Label products at a lower price. Private label SKUs with higher price probably gets deactivated with the Amazon algorithm’s assumption due to too high a price! That’s why a repricer is a must-have tool for private labels as well.
Rule-Based Amazon Repricers Cause Problems, Instead of Solving Them!
There are plenty of rule-based Repricers available in the market for resellers. Instead of a data-driven pricing approach, they are simple code fragments that focus on executing rules set by customers, guru templates, or consultants. There are two pitfalls to automated repricers.
First, there might be glitches in their Pricing Rules that do not capture a price-gouging. For example, if you have the buy box, increase the price as long as there are sales. These repricers cannot detect Amazon’s high and low price errors. Eventually, most of them recommend using Amazon Minimum and Maximum price settings, which creates much manual work to maintain. Thankfully these repricers do not work with Private Labels as they are not data-driven.
The Best Solution for Amazon Potential High Pricing Errors
Now we learned the potential reasons for price problems next thing is how to bypass pricing errors. The manual way is to lower the price, reactivate the listing again, and monitor the SKU. In some cases, reactivating does not work, and some sellers delete the listing and create it. It is almost impossible to handle numerous SKUs and monitor your listings 24 hours a day. What if you are a dropshipper with thousands of SKUs? You will never make it and end up with many inactivated SKUs every day due to dynamically changing Amazon’s fair price floor and ceilings.
Eva does not work with rules or algorithms but with data and predictions. Eva dynamically calculates the pricing points where a potential pricing error can happen and avoids that by setting a dynamic price range. Meaning, that minimum and maximum prices are changing dynamically, like the SKU price but less often. Eva will reactivate the listing in minutes and set the new range avoiding such issues in case of deactivation due to Amazon sourced event. We believe High and Low pricing errors are causing double-digit revenue loss or much manual work.
Amazon will push more fair pricing policies in the future. It will be inevitable for Amazon Sellers, Resellers, Dropshippers, or Private Labels to use a Data-Driven approach. An intelligent repricer like Eva can avoid such errors and unleash the revenue potential of guaranteed active listings non-stop.