What are Amazon High Price Alerts & How do I resolve them ?

If you are items are disabled on Amazon Marketplace, one of the most likely reasons is due to High Price alerts. In this article, we will go through a quick overview of what they are , the underlying reasons and how to resolve them. 

High Price Alerts are notifications from Amazon to sellers indicating that the price of their product is significantly higher than the recent prices for the same item. Amazon sets these alerts to ensure that prices remain fair and competitive on their platform, protecting consumers from price gouging and maintaining a healthy marketplace.

Causes of High Price Alerts:

1. Significant Price Increase: If the price of an item is raised significantly in a short period, especially during times of high demand (e.g., during holidays, emergencies, or for popular products).

2. Higher Than Historical Prices: If the current price is much higher than the historical average price for the product.

3. Higher Than Competitors: If the price is significantly higher than similar products offered by competitors on Amazon.

Impact of High Price Alerts:

- Suppressed Listings: Amazon may suppress your listing, making it unavailable to buyers until the price is adjusted.

- Buy Box Eligibility: High prices can affect your eligibility for the Buy Box, which can significantly impact sales.

- Account Health: Repeated alerts and price gouging complaints can negatively impact your account health and seller rating.

How to Resolve High Price Alerts:

1. Review and Adjust Prices:

   - Analyze Competitor Prices: Check the prices of similar products offered by competitors and adjust your price accordingly.

   - Historical Pricing: Review your product's price history and ensure your current price aligns with past trends and average prices.

   - Amazon suggested recommendations: Review Amazon suggested price recommendation and accept if you agree with the recommendation. If you do not agree, please communicate with Amazon as to why SKU deserves a higher price (see below)

Please note that before you update and activate  a SKU in  Seller Central with Amazon's suggested min and max price, please locate the SKU in Repricer AI and re-set its same minimum and maximum price to align with your pricing change in Amazon and change Repricing Type to "Not Repricing". Also, If you are using bulk min & max rules, make sure you check 'Exclude from Auto Min Max Updates' (see screenshot below from Repricer AI).This is to ensure that Repricer doesn't end up overriding your pricing updates.  You can re-activate Repricing and Bulk Min/Max rules for these SKUs a fe hours  after your items are activated in Amazon. 

2. Communicate  with Amazon & Provide Justification:

   -

- Submit a Case: If you believe the high price alert is unjustified, submit a case through Seller Central with detailed explanations and supporting documents.

   - Compliance with Policies: Ensure that all your pricing strategies comply with Amazon's Fair Pricing Policy and other relevant guidelines.

Cost Increases: If your costs have increased (e.g., due to higher manufacturing costs, shipping fees, or supply chain disruptions), document these changes and communicate them to Amazon.

   - Product Enhancements: If the product has undergone significant improvements or additions that justify a higher price, provide detailed information to Amazon.

3. Monitor Market Trends:

   - Keep an eye on market trends and competitor pricing to ensure your prices remain competitive.

   - Use repricing tools such as RepricerAI to automatically adjust prices based on market conditions and competitors' actions.

Tools and Resources:

- Temporarily disable Min/Max pricing rules in 3rd party pricing tools such as Repricer AI and ensure to match the  MIn/Max range with your manual changes in Amazon.

- Leverage Price Tracking Tools: Use tools like Keepa or CamelCamelCamel to track historical prices and market trends.

- Seller Central: Regularly check notifications and alerts in Seller Central to stay updated on any pricing issues or alerts.

References:

- Amazon Fair Pricing Policy(https://sellercentral.amazon.com/gp/help/external/202034480)

- Keepa(https://keepa.com/)

By actively monitoring your prices, using competitive analysis tools, and ensuring compliance with Amazon's pricing policies, you can effectively manage and resolve high price alerts on the Amazon marketplace.