What is Amazon's Price Protection Policy? Amazon's Price Protection Policy Review, Features

The Amazon Price Protection Program Policy is a policy that Amazon has set for suppliers. If a supplier lowers the price of an existing ASIN, Amazon will automatically apply the new price to all of its inventory (for a specific ASIN).

About Amazon's Price Protection Policy

Amazon began to implement a new automatic price protection policy on February 4, 2019. According to this policy, if you lower the cost price of the products provided to Amazon, Amazon will automatically apply the lower cost price to all unfulfilled purchase orders, products in transit, and existing inventory.

check the details

You can review the entire policy by logging into Vendor Central and accessing the Resource Center, or by visiting Amazon’s Price Protection Help page.

effect

The new policy will reduce the likelihood that sellers will receive high-cost inventory returns and allow Amazon's system to update sellers' new offers more quickly. It will also help sellers get special price markings on retail detail pages, helping to sell products.

Steps to apply for price protection

Step 1: Click "Help" at the top of the Amazon homepage, the help interface will appear, and enter "Contact Us".

Step 2: Log in to your Amazon account, and the most recent orders will pop up automatically. Select the orders that need price protection.

Step 3: Select the reason “Returns and Refunds” and “Check status of a refund”.

Step 4: Click "Chat" to start chatting with customer service online. If your English is OK, Live Chat is undoubtedly the fastest way. Online chat can solve the problem immediately and is the first choice for those who pursue speed. Although the conversation is in English, the requirements are not as high as you might think. Even if it is Chinese English, the customer service can basically understand it.

Step 5: After starting the online chat, the dialogue template for requesting a refund is as follows:

Amazon has dropped the price of good sense organic walnuts to $25.97, however, I bought it for $35.97. So it's reasonable for me to get a refund.

Please replace the above _______ with “goog sense organic walnets”, “$25.97” as the product name, and “$35.97” as the product purchase price.

There are three ways to compensate for price:

1. Refund the price difference to the credit card used to place the order, and it will take effect 3-10 working days after the credit card is credited to the account.

2. Refund the price difference to your Amazon account, which can be used as cash on future purchases, and the refund will take effect immediately.

3. Give a Promotion Code and you can get a certain discount next time you buy something.

Policy Purpose

1. Maintain seller store sales.

Every move of the platform will affect the two-way experience of sellers and consumers. Amazon launched the "Price Protection Policy" to avoid malicious low-price competition among products, protect consumers, and protect the vast majority of compliant and honest sellers.

2. Guide sellers correctly.

Malicious manipulation of product prices, obtaining platform traffic through extremely unreasonable prices, and disrupting the price balance of similar products have always been issues of concern to sellers.

In order to correctly guide sellers to actively respond to the platform and operate in compliance, that is, if merchants arbitrarily reduce the cost price of products, Amazon will automatically apply the lower cost price to all unfulfilled purchase orders, including products in transit and existing inventory.

3. Expand the buyer base.

As the cross-border e-commerce industry continues to grow and develop rapidly in recent years, mobile shopping is frantically grabbing market share. The convenient shopping method not only makes consumers unable to stop.

The scale of overseas online shopping users continues to expand, and the influx of new users will greatly increase the activity and transaction volume of the cross-border e-commerce export industry.

Only by building a good shopping ecological environment can we retain the continuous influx of new buyers, form platform sales stickiness, and increase repurchase rate.

Influence

This policy may make many suppliers and advertisers feel cold. You know, in the past, Amazon required suppliers to make some approved changes before charging.

As the new policy is implemented, it may have an impact on profitability, especially for suppliers who do not understand how the new policy applies to their ASINs.

On the other hand, with this new pricing and costing policy, it is more critical than ever for suppliers to understand their profit targets when launching new products in order to avoid surprises when managing costs once the product is fully in the market.

Here is Amazon's official explanation: Due to the new automated features of price protection, we do not need you to log in to Vendor Central and manually approve the price protection agreement. This will reduce the possibility of you getting high-cost inventory returns and may also result in retail products becoming featured products on the detail page.

history

As early as 2016, Amazon claimed that it could provide "price protection" for goods within 7 days of receipt. That is, if the price of the goods dropped within 7 days from placing an order to receiving the goods, compensation for the price difference could be applied.

But later, through communication between Amazon.com and Central Asia Overseas Shopping, it was confirmed that Amazon in the United States had officially canceled this policy since May.