Overview

Amazon gives sellers broad flexibility when setting prices for their products, but there are important guardrails in place. Understanding the pricing rules, plan-based limits, and how Amazon defines "item price" versus "total price" is essential for staying compliant and avoiding listing issues. This reference covers the key pricing policies every seller should know.

Key Points / What Sellers Need to Know

• Price freely within Amazon's limits — Sellers can list items at any price they consider fair, regardless of the manufacturer's suggested retail price or list price, as long as they stay within Amazon's established pricing boundaries and adhere to Amazon's general pricing rules.
• Individual plan cap: $10,000 — Sellers on the Individual selling plan cannot list items priced above $10,000 per unit. This cap applies across all standard categories.
• Professional plan cap: $300,000 — Sellers on the Professional selling plan have a higher ceiling, with a maximum listing price of $300,000 per unit.
• Collectibles are exempt — Price limits do not apply to items listed in the Collectibles category, which has its own set of category-specific requirements.
• Amazon may flag unusual prices — Amazon aims to help customers make informed purchasing decisions and may display descriptions or alerts when an offer's price appears unusually low or high compared to market norms.

How Pricing Works on Amazon

Sellers have the freedom to set their own prices on the Amazon marketplace, but those prices must comply with Amazon's Fair Pricing Policy. This policy is designed to maintain customer trust and ensure that prices in the Amazon store remain competitive and reasonable. Amazon monitors prices across its marketplace and may take action on listings that appear to be priced unfairly, such as prices significantly higher than recent prices offered on or off Amazon. Sellers should regularly review their pricing strategies to ensure they remain within acceptable ranges and avoid triggering pricing alerts or listing suppression.

Price Definitions: Item Price vs. Total Price

Amazon distinguishes between two important pricing concepts that sellers must understand. The is the amount a customer pays for the product itself, excluding any shipping and handling charges — it is the price displayed when you create or edit a listing. The , on the other hand, encompasses everything the customer ultimately pays. This includes the item price plus shipping and handling charges, any rebates or special promotions associated with the purchase, the payment method terms, shipping-related practices such as free shipping offers or reductions in order-related fees, and any low-price guarantees you may offer. Notably, the total price does not include discounts, rebates, or promotional offers that a seller attempts to make available through unauthorized channels that Amazon does not honor or support.