Pricing Errors on Amazon: How to Fix Low and High Pricing Error Alerts

What Happens When You Get a Pricing Error Notification?

Once a pricing error is detected, Amazon acts quickly. The platform may deactivate or suspend the listing temporarily until the pricing issue is resolved. In more severe cases, Amazon might terminate your selling privileges if you have repeatedly done this in the past.

How Does this Impact Customer Perception and Sales?

Customers are very price-sensitive. If your product has a higher price (price gouging) as compared to others, they might see it as too expensive and look for cheaper options or buy from third-party sellers. On the other hand, if your product is priced too low, they might doubt its quality and authenticity.

When listings are deactivated or suspended because of these errors, your products will not be visible in search results. This means that customers will not be able to buy from you during this period, which can significantly impact your profits, especially if the item was a top seller.

How to Prevent Pricing Errors

Here’s a list of multiple strategies that you can use to prevent potential pricing errors on Amazon:

1) Double Check Your Price Before Entering It

When setting a price for your listing, always double-check the amount you enter. Rushing could lead to errors like misplaced decimal points or adding too many zeros. This can result in prices that are either too high or too low, which might trigger Amazon’s price error detection system.

For instance, if you intend to list a set of headphones for $59.99 but accidentally enter $599.90 because you typed an extra nine, this high price could flag the system, as it would be unusually high compared to similar products.

2) Use a Competitive Pricing Strategy

To avoid pricing issues, it’s important to keep up with what your competitors are charging. Actively track the average price range for similar products in your category. This way, you can avoid mistakes and keep your prices competitive in the market.

3) Avoid Extremely Low Pricing

While it’s good to have competitive prices, setting them too low can set off Amazon’s price error alerts. Plus, extremely low prices might make customers question the quality or authenticity of your products, which could lead to fewer sales and a negative impression.

It’s important to find a balance. Offer competitive prices that truly reflect the value of your products. Also, the price should be attractive to customers but shouldn’t make them suspicious.

4) Follow Amazon’s Policies

Under Amazon’s Fair Pricing Policy, there are several guidelines to follow to avoid getting a potential high pricing error or low pricing error. Here’s a simpler breakdown of these rules:

– Don’t set a reference price that could mislead customers about the value.

– Avoid setting prices significantly higher than what you or others have recently charged for the same product, either on or off Amazon.

– Don’t charge more per unit when selling multiple units than you do for a single unit of the same product.

– Keep shipping fees reasonable. Amazon checks against current public carrier rates and reasonable handling charges, and considers how buyers perceive these costs to determine if a shipping price is too high according to their policy.