Selling Items at 99p including postage - how?


I have received an email from Amazon saying one of my listings has been deactivated due to ‘Potential pricing error’

This is for a lightshade that I have had listed for a couple of years that I sell for £6.99 inc postage. However, no matter what I do Amazon refuse to re-activate it again.

On investigation I have found another seller of the item selling it at 99p including postage. Considering the item has to be sent as a Small Parcel that basically means they are losing money on the sale (and that is before VAT, Amazon fees, etc are considered).

So basically I cannot get my listing reactivated as Amazon reckon I am selling it at too high a price and the seller who is selling at 99p must be losing several pound on every sale.

Good job I have other marketplaces I can sell it at without the draconian measures Amazon enforce.


Most likely flat packed one I had one arrive like that once but it was still bigger than a large envelope was flat and just stuck together with velcro metal was clapped and opened up


But still 99p has to be a error surely


Yes it is flat packed and concertina’s out. But it still a small parcel size. But even if it could go for large letter they still must be making a loss.
By time VAT and Amazon fee removed they only have 68p left to cover postage & packing.
This happened a few weeks ago and I left it thinking they would eventually correct what I think is their pricing mistake - but so far nothing. In the meantime Amazon refuse to allow me to reactivate my listing so I have to keep checking every few days.


We sell own brand and wholesale items and what we sometimes find new sellers don’t always take the vat into consideration.


This seller is using Amazon VCS as price is shown ex VAT so they must know the VAT due


hi Peter

just for my knowledge as we are not Vat registered because we does not meet Vat threashold so I am wondering amazon charge us vat in its fee or we will be billed separate for vat?



It’s in with the fees what you see on inventory pages etc. Does not show vat mind but it will be on your dispursment summary

So if your looking at what things cost on selling fees from inventory make sure you add 20%


The seller could be having a clear-out of old stock.

Get rid of it cheaply as you have tons sat on the shelves and need more space for better selling stock.

If below your cost, and you sell on other marketplaces, technically you can buy the item off the seller, and sell it elsewhere? (Not on Amazon as you wont have invoices)



Thank for your information. I noticed one thing more as I was thinking amazon charge Vat 20% on product value but actually amazon charge vat on Referral or any other fee which you may have.

This is good to know it charge 20% on its fees not on product fee


You can dispute the error with Amazon as long as you can prove to them your price is fair.
Break it down to them like this…
Item cost = xxx (send a copy of Invoice as evidence)
Postage = xxx
Packaging = xxx
Amazon Fees = xxx
Total profit = peanuts


Mmmmm but that makes no sense even if doing a clear out. If they making a negative profit it is surely better to just bin the items. At the moment it is costing them more to sell than they are taking.


To be honest for the peanuts profit I am making it is just not worth the effort arguing with Amazon on the issue as it will take me more time I can make better use of listing other items or even just making myself a cuppa lol


I would not think it impossible that some seller’s can and will sustain to sell at a loss in the hope it puts smaller competitors out of business. Then once others give up and leave they will raise prices and get all the buyers.


Yes possibly but in meantime they are the ones taking the loss - and their loss per item is more than my profit lol
If thats the game they want to play then it dangerous as it them losing money not me and they will drive themselves out of business first. Ive plenty of other products to keep me going. It not a massive seller and profit is very small. I will wait and check every few weeks until they raise price then activate my listing again.


It is not Amazons job to charge VAT on the products you sell but yours (assuming you are VAT registered)
Amazon add VAT to the fees they charge only


You have to compete heavily and cut profits dramatically sometimes to win sometimes to put other people off selling that line but then it only works for a short while then u back doing it again when another comes along


If you are VAT registered than FBA and Introduction fees are handled undr EC Reverse Charge regulations. Otherwise you need to refer to your monthly FBA and Introduction fee invoices from Amazon. They appear in your Tax Document Library.


I had the same problem with a dvd it went on for about a month at be deactivated due to being over priced when in actual fact ir was almost £40 below what they wanted in America for the same dvd they are wanting us to give more and more details to them but they don’t update there site to include new postage as well as check where on the site the items are because when I typed in the name of the film it came up straight away


If you look at your inventory you will see a link to fix potential pricing error. This allows you to set the lowest and highest prices (any you want). and the listing will be reactivated.