Amazon Fair Pricing Policy for Sellers, Explained

Amazon’s Fair Pricing Policy requires that a seller’s listed price be reasonably comparable to other pricing on and off Amazon, and violations can be flagged even for old, inactive listings that were never deleted. Sellers can reduce this risk by regularly auditing inventory, removing discontinued listings, and setting maximum price limits on any repricing software.

Amazon sellers have recently been finding violations on their Account health for violating Amazons “Fair Pricing Policy“.

We were recently contacted by several of our clients with these issues, specifically pertaining to items that they have not even sold in years. What does the Fair Pricing Policy mean and how does it apply to sellers?

Pursuant to the Amazon Fair Pricing Policy, a sellers listed price for the item has to be be “fair” or comparable to both on and off Amazon pricing. This applies even to items that a sellers has discontinued but has not detleted off of otheir inventory.

As a Seller, the best thing you can do is to review your inventory catalog and purge all the items that you are no longer selling by deleting them. This would avoid Amazon’s systems from analysing old and obsolete pricing which is no longer current. Also, for sellers who are using a “repricer”, be sure to set a maximum price on your repricer to avoid your items being excessively priced. We also recommend doing a full review of your listings and inventory on Amazon periodically to ensure that your products and pricing are current with market prices so you do not unnecessarily get affected by this policy.

If you have any questions regarding this or any other selling aspect on Amazon, please feel free to contact us for a free consultation.