Amazon are stepping up efforts to offer the best online prices to their buyers by stipulating that sellers must offer an equal or lower price than any other online channels.
From March 31st the price sellers on Amazon must ensure that “the total price and corresponding item price of each product you list on Amazon.co.uk are at or below the lowest total price and corresponding item price at which you offer the product via any of your other non-physical sales channels”.
The only exception is for products offered with Fulfilment by Amazon, where Amazon may offer free delivery. In this case the price on Amazon can be higher than the price on other channels, so long as the price is still lower than the combined item cost and postage price you sell at elsewhere online.
Amazon define other non-physical sales channels as specifically including “any online channels, mobile device applications, catalogues, third party platforms or marketplaces (e.g., ebay.co.uk)”.
If you’re an existing Amazon seller you have until 1st May to make any price parity changes. More information on Amazon Price Parity is available on the Amazon website.
I know several sellers who have in the past placed product at higher prices on Amazon knowing that that marketplace will attract sellers willing to pay a premium price. It will also make it harder for sellers to attract buyers to their own website for future purchases if there is no difference in price, or the website price is higher.
If you sell on Amazon do you list at a higher or lower price than other venues? Do you stock different inventory for Amazon or will you be affected by the new rules?