How I automated fixing “high pricing errors” on Amazon

Almost every Amazon seller has to deal with “high pricing errors.” And they are the WORST.

Here’s how it goes: You price your inventory in a perfectly reasonable way. Maybe you’re not the lowest price for that listing, but why should you be? Maybe you’re an FBA seller and can price higher. Or your condition is better. Or it’s a signed copy that can command a small premium. Or any number of countless reasons you don’t want to blindly chase the lowest price offer downward into un-profitability.

Seems totally sane (and it is).

Then you get this email from Amazon:

“Dear Seller,

We have deactivated the listings noted in this email due to detected pricing errors or in accordance with Amazon’s Marketplace Fair Pricing Policy. You can view more information and take steps to reinstate these listings by visiting the Pricing Health page in Seller Central.

Examples of pricing errors include offers priced below your specified ‘minimum price’, above your specified ‘maximum price’, or offers priced significantly higher than recent prices offered on or off Amazon. Sellers are responsible for setting their own prices in our store. When possible, we share reference prices for these products to help inform typical price ranges expected by customers.

If you believe that we took this action in error, or have questions or need help, click the “Help” link at the top of Seller Central.

Regards,

Amazon Services”

You just got hit with one of the notorious Amazon “high pricing errors.”

Inventory that you worked hard for, and priced in a way that made perfect sense to any reasonable person, is now stranded and no longer available for sale. And Amazon is forcing you to drop the price before they’ll make your inventory live again.

All I think every time this happens to me is: “What business is it of Amazon’s how I decide to price my inventory?!”

#1: Reference price

This is the most misunderstood one. “Reference price” is the price Amazon is trying to influence you to match. I.e. the price it deems “fair.”

The misconception is that this is the price you must match (or price below) to have your item reactivated. Not true.

This price is almost always outrageously low, and generally should be avoided. But if you want to quickly reactivate every listing, matching this price will make that happen. (But matching the Buy Box price is almost definitely just as effective, and will result in higher prices).

#2: Amazon price

This is the price Amazon is selling the item for directly (if they’re selling it). This is generally the absolute maximum you should ever price any item at (since you can’t price higher than Amazon).

#3: List price

This is “manufacturer’s suggested retail price.” For example, if you’re selling books, this will be the price actually printed on the book. It’s usually higher than Amazon’s price.

#4: Average price

Most products (at least that I sell) don’t have an average price listed. This price would be useful, however we shouldn’t necessarily trust Amazon that this number is accurate.

#5: Featured price

Also known as “the Buy Box.”

The significance of this is that it’s a price we know there is a current offer for sale at. That means we know that Amazon “allows” this price. So it’s a safe bet that if you match this price, your offer will be reactivated.

#6: Your price

Obviously, this refers to your current price (the one Amazon didn’t like and the reason they deactivated your listing).

What is the best formula to fix pricing errors?

Now that you have the tool to make it easy, what of these options is best and most efficient?

I’ll just tell you what I do personally, for 100% of my high pricing errors…

I simply drop my price by a few cents.

Occasionally $1 if the item is priced really high.

Then I wait.

If it gets deactivated again, I repeat the process until I hit a price that Amazon accepts.

The only downside to this is that it can take many attempts. So this approach is not for everyone if you don’t want to invest the time.

Personally, I have such a cataclysmic rage towards Amazon over these errors, I will bombard them all day long with edits until they give in.

While this approach takes longer, at least you’ll know you’re not pricing too low and leaving money on the table.

But again, with NeuroPriceFix, you also have many other options.

Cause #1: Prices outside your min/max limits

When you listed your inventory for sale, you should have set min/max price limits for each item. It’s not required, but it’s generally advised. This tells both Amazon and your repricing tool (at least this one) when a price is either “too high” or “too low.”

If you did set these values, your inventory will become immediately deactivated if you edit prices outside these parameters. This is cause #1.

Cause #2: Prices Amazon randomly decides are too high

I’ll share my theory about why Amazon does this, but , but here’s a basic overview of the mechanics behind it…

Amazon has what’s called a “reference” price for most items. This is the price Amazon decides is “fair.” It’s based on not just historical selling prices on Amazon itself, but Amazon also admits to reviewing prices on other sites like eBay.

(I’ll spare you the rant where I ask the question: Why does Amazon get to decide what’s “fair”?!)

At least as of the time I’m typing this, Amazon doesn’t share their “reference” price, so it’s purely a guessing game. They don’t reveal it until a listing gets deactivated, at which point they will publish their reference price next to your listing on the Pricing Health page.

Important to understand: The “reference price” is not the absolute max price that Amazon will allow (common misconception). It’s just a starting point to figuring out what Amazon is expecting. You can still price higher (and should in most instances).

That’s why I use the word “random.” Amazon isn’t transparent about their formula, and they’ll just deactivate anything they want, whenever they want, if they deem a price “too high.”