Overview

Amazon's Automate Pricing tool allows sellers to create rules that automatically adjust product prices based on unit sales performance. Sales-based pricing rules let you set thresholds tied to how many units you sell within a given time period, triggering automatic price decreases when sales dip below your targets. This feature helps sellers stay competitive and move inventory without manually monitoring and adjusting prices around the clock.

Key Points / What Sellers Need to Know

• Automated price adjustments - You can configure rules that lower your price automatically when unit sales fall below a threshold you define, removing the need for constant manual repricing.
• Flexible time intervals - Evaluation periods can be set to 1, 7, 10, 14, or 30 days, giving you control over how frequently the system checks your sales performance.
• Percentage or dollar-based decreases - Price reductions can be set as a fixed dollar amount or a percentage, with a minimum adjustment of 1% or $0.10 and a maximum of 90%.
• Min/max price safeguards - Each SKU assigned to a rule requires a minimum and maximum price, preventing automated adjustments from dropping your price below your profit floor.
• Multi-marketplace support - A single rule can be configured across multiple marketplaces, each with its own parameters.

How It Works

Sales-based pricing rules operate on a simple trigger mechanism. You define a unit sales threshold and a time window, and if your actual sales fall below that threshold during the evaluation period, the system automatically decreases your price by the amount you specified. The price change takes effect at the end of the evaluation interval. For instance, if you set a rule to check every 14 days and your sales drop below 10 units during that window, the price decrease would kick in on the 15th day. The rule then resets and begins evaluating the next period. This cycle continues as long as the rule remains active and SKUs are assigned to it.

Setting Up a Sales-Based Pricing Rule

To create a rule, navigate to the Automate Pricing section in Seller Central and select the option to get started or create a new pricing rule. Choose "Based on sales units" as the rule type and give it a descriptive name that will be easy to identify later, such as "Sales below 10" or "Slow mover rule." Next, select the marketplace or marketplaces where you want the rule to apply. Then configure your parameters: set the sales threshold, choose whether you want a percentage or monetary decrease, specify the decrease amount, and select how often the rule should evaluate your sales data. Before saving, review the rule summary that the system generates to confirm everything looks correct. The summary will read something like "Once every 7 days, if sales are less than 10 units, the SKU price will decrease by 10%."