Overview

Amazon has introduced a new discount type in Seller Central that lets sellers offer percentage‑based price cuts while setting a minimum price threshold. The feature, launched in early 2024, answers long‑standing requests for more dynamic pricing tools and adds an automatic guardrail against selling below a profitable level. Sellers who run frequent repricing or large‑scale promotions should understand the mechanics to avoid margin erosion.

Key Points

• Dynamic percentage discounts — Sellers specify a discount rate (e.g., 15 %) and Amazon calculates the reduced price against the current list price each time it changes.
• Configurable floor price — A seller‑defined minimum price stops the discount from falling beneath a set amount, protecting margins.
• Automatic deactivation — If a price change would push the discounted price under the floor, Amazon disables the promotion without manual intervention.
• Dashboard notifications — Deactivated or at‑risk promotions appear on the pricing dashboard, prompting review.
• Permission requirements — Primary account owners have immediate access; secondary users need explicit pricing‑tool rights.
• Fixed‑price discounts remain — Existing dollar‑amount promotions continue unchanged, giving sellers a choice between the two models.

How Percent-Off Discounts Work

1. Set the discount rate — The seller enters a percentage (e.g., 20 %) on the promotions page. Amazon then applies that rate to the product’s active price. Example: A 20 % discount on a $120 listing yields a $96 sale price.
2. Price recalculation on base‑price updates — Whenever the underlying list price is altered—whether by manual adjustment or an automated repricer—Amazon re‑applies the same percentage. Example: If the $120 item is later repriced to $100, the discount automatically becomes $80. No additional steps are required from the seller.
3. Floor‑price validation — Before the new discounted price goes live, Amazon checks it against the seller‑provided floor. If the computed price is equal to or higher than the floor, the promotion stays active. : With a $75 floor, the $80 price from step 2 is allowed.