Why does Amazon monitor Pricing?
So it seems like more often than not, some issue arises with Amazon thinking a price on a product is too high for their liking. As my question states, why? If the buyer wants a product and is willing to pay a set price, why should they care. A transaction requires 2 parties. One with something for sale at a price they want or need. The other party that is wanting to exercise their purchasing power and acquire something. Amazon make 15 percent no matter the price, so why do they need to monitor pricing? What two consenting parties do should be between them. I just don't get it.
16 replies
Seller_OvL8C4BJWiuS9
Amazon strives to present the best possible price-that is why they monitor pricing. Buyers on Amazon are more than likely shopping for the lowest price and fastest shipping.
Seller_iobipI6xASRkh
Unfortunately, price gouging is a thing and Amazon is known for being a competitive "race to the bottom" as in who can go lower and win the BB.
Seller_r9wMm8LrE5iKj
Uh, this is how you create a monopoly: price fixing. You are looking at this from the perspective of the seller, which is never what Amazon is doing.
Seller_HRcJa1gdGHeov
The Fair Pricing Algorithm came from price gouging on essential items; this became a huge issue for Amazon during the pandemic and they majorly increased the scrutiny and reach of the bot during that time.
Unfortunately as with most code that Amazon produces, it is not good and now the FP bot is routinely removing fair valued items that are not essential. It appears Amazon would rather have ZERO offers than one they feel is too high, even if based upon legit comps.
The current Fair Pricing algorithm is akin to price fixing (and is probably illegal) but since it only hurts small business and helps the consumer, no attorney general will lift a finger. Way more people in the general population than small businesses; one more instance where small businesses are exploited by corporations.
Seller_kWzASERYhgus6
well how else are the going to build a dystopian hellscape? It HAS to make no sense, that is the point.
Seller_zSWez2Mzpdboa
Amazon monitors pricing, because they want You to keep on lowering your prices, so that they They are able to make the sale on Their Platform. It's easier for them to force you to lose money, instead of them having to lower prices. Don't forget they will still make money on your back, regardless.
Seller_phy2uq6HMLwRI
Yes,
I don't really like the pricing requirements from Amazon, particularly when it comes to brand products.
It makes no sense for Amazon to dictate pricing structure for 3rd party Amazon sellers. We should be be in total control of pricing and believe inhibits our freedom of speech rights.
What's worse is this restriction when it comes to discounts, coupons, and promotions.
The platform should be agnostic to pricing because at the end of the day, 3rd party sellers make amazon profitable and without us; amazon's brand products would be only race to bottom style loss products.
These platforms need to cater to the 3rd party seller, otherwise over time Amazon is going to find this is a gap a competitor will quickly fill.
Seller_roNdLQpqbVoOH
There was a day (way back) when Amazon was known for low prices, but that no longer seems to be the case. Amazon talks a good game, but all I see is outrageous prices when I wander through the catalog doing my daily business. My everyday needs are always cheaper at Walmart; there is no comparison.
Like this?
Seller_zjQpgqncAIPjY
yeah if you don’t charge much like I did you lose money
