You can set the minimum and maximum price guardrails on Amazon to avoid making any errors in your pricing. You may know that Amazon has pricing policy guidelines for Amazon sellers that dictate the parameters of the prices being set in the Amazon Marketplace. Every seller should have agreed to these pricing guidelines upon opening a seller account on Amazon. This article will guide you to set maximum and minimum price limits from Amazon Seller Central.
Why do you need to set different price limits?
If you are selling products on Amazon, it’s inevitable for you to set Minimum and Maximum prices. Because if your price is low then you may lose your business. On the other hand, If your price is high your customers will have negative experiences. Such as if your product price is 04.00 instead of 140.00 or if your product price is 400.00 instead of 40.00, how shocking that will be for you and your buyers! Amazon suspects this based on the pricing history of that particular item. Therefore, Amazon is very conscious about this, so Amazon alerts for lower or higher prices. Sometimes Amazon sends you price alerts and blocks your ASINs because of pricing issues, so you must confirm your offer prices by setting minimum and maximum prices.
How to set different price limits?
Now, let’s get deep into the process. First, log in to your seller central, click on “Pricing” and select “Manage Pricing” from the dropdown.
Look, there is no minimum and maximum price. Click on “Preferences: 10 columns hidden”.
Select the box of “Your Minimum Price” and “Your Maximum Price”.
Now click on “Save changes”.
Here, the minimum and maximum price is shown. Add your minimum and maximum prices and click on the “Save all” button.
Note: Before clicking on the “Save all” button, please review prices once again to make sure they are okay.
How to calculate Minimum and Maximum Price?
You can calculate Minimum Price as
[Item Cost + Amazon Fees + Minimum Profit Desired]
Your minimum price must be greater than the minimum referral fees for the products’ category; in many cases, $0.50 – $1.00.
Your maximum price must be less than 6-times the ASIN’s recent sales price or $200.00, whichever is higher. For example, if an ASIN’s recent sales price is $10.00, your max price must be less than $200.00. You can add your max price up to $200.00 for any item having a sale price less than $200.00. If your ASIN’s recent sales price is $50.00 your max price must be less than 6-times $300.00. If your price is $100.00 and the maximum price is $500.00, it will not show any error because it is less than the 6-times that means $600.00. Otherwise, your ASINs will be blocked, and you have to correct your offer again.
To sum up, Amazon regularly monitors the prices of items including shipping costs and compares them with other prices available to the customers. If they find an offer that harms customer trust, they may take action to remove the buy box or offer. In serious cases, they may suspend or terminate selling privileges. We hope that you know how to set up the minimum and maximum pricing on Amazon. If you like our discussion, please comment, share, and subscribe to our blog. Also, do not hesitate to ask if you have any queries on any field of eCommerce. We would be glad to hear from you and answer your queries.
