What to do if you receive a price warning / alert from Amazon. How pricing strategies are affecting sellers with Anthony Zhang from Amazon Sellers Lawyer.
So, Amazon has been trying to play ‘the good guy’ during this Coronavirus pandemic by keeping essential products’ prices low. These are reflected in listings we see – where for example, a hand soap would be sold at half of its price. Things like masks and hand sanitizers are very carefully gated so that consumers are not really effected or being price gouged during the crisis.
Despite all of this, we have seen Amazon being sued. There was a class action lawsuit filed against Amazon in the state of California for price gouging very recently. Things like masks, hand sanitizer, soap, and even flour. These kinds of things are negatively reflected on Amazon, since they have been trying very hard to keep prices low.
If you receive a price warning / alert, the listing is kept up usually for about 24 hours in order to give you time to resolve the issue. So the alert might change from yellow to red once the 24 hours is up, and if you still haven’t addressed the issue, you’ll be issued a Fair Price Policy violation, which shows up on your account health.
We’ve seen most cases where the Fair Price Policy warning comes with a self-resolving appeal process. A seller is given four check boxes where Amazon asks you to agree and say that you understand Amazon’s policies, you have changed the price on your item(s), you have implemented preventative measures, and that if you don’t comply with these policies, then your Amazon account may be deactivated. So, once you check these boxes, you will be given a response either reinstating your listing or demanding additional information. This whole process happens fairly quick. People’s listings can be taken down at any time. If you do have a price warning / alert, make sure to address it asap.
What does Anthony suggest in price warning cases like this?
Stop selling those products. If you can’t compete with lower prices, don’t. When you know that sourcing costs are much higher now compared to Amazon’s sourcing costs, which are much lower. So instead of risking getting a pricing complaint, it’s best to stop selling in order to maintain a good account health.