Amazon to Require the Lowest Prices

Marketplace merchants have until May to adjust to new seller terms.

by staff writer
- Mar 29, 2010

Sellers who offer products on certain Amazon sites will have to ensure their products are priced the same or lower than anywhere else they sell the same product.

Beginning on March 31, Amazon's seller agreements for its French, German and U.K. sites will state that sellers on these sites must ensure they offer products on Amazon for the same or for lower rates than they do on other marketplaces. However, sellers have until May to adjust their prices, if needed. Those who fail to lower their prices will lose their selling privileges, according to the company.

"We believe that price is one of the most important factors in customer buying decisions," notes an Amazon FAQ explaining the policy change. "And customers trust that prices and other terms on Amazon are as good as—or better than—those found on other shopping channels. We believe this trust results in more customers and more sales, increasing the value of the Marketplace to sellers like you."

According to Amazon, this requirement only applies to Amazon U.K., Amazon Germany and Amazon France, and will not be rolled out beyond these sites at this time.

But that's not the only area in which Amazon hopes to out-do its competitors.

"We will also expect that the non-price terms you offer on (e.g., customer service, return and refund policies, etc.) are at least as favorable to customers as the most favorable corresponding terms offered by you or your affiliates on any non-physical sales channels," Amazon adds.

For more information on this policy change, read Amazon's Price Parity page.

About the Author

Auctiva staff writers constantly monitor trends and best practices of those selling on eBay and elsewhere online. They attend relevant training seminars and trade shows and regularly discuss the market with PowerSellers and other market experts.

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