Navigating the New Pricing Requirements on Amazon

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The AMZ Update: Pricing Requirements

Amazon recently announced a slew of new changes that are pertinent to anyone selling on the platform, most notably affecting those doing business in Europe. These policies impact price-fixing, mediation, and refurbished goods and will take effect on March 31st, 2022. 

This update will discuss these changes in detail as well as the implications of these changes for sellors and vendors. Furthermore, it will provide important advice for the delicate process of navigating vendor negotiations with the platform.

What exactly is being changed?

There are a broad range of new implementations, including…

  • Explicit prohibition of price fixing and search rank manipulations
  • Sellers now have the option to designate one mediator among a list of two provided by the CEDR (Center for Effective Dispute Resolution)
  • Changes to metrics measuring seller participation in Amazon Renewed (program for refurbished goods)
  • Introduction of the Negative Review Rate and Product Quality Return Rate as primary quality performance metrics
  • Introduction of a new service called Lab Central, meant to perform compliance testing in a more convenient manner

For more details, visit Amazon Seller Central Europe.

Will this apply to me and my business?

These changes are most impactful to sellers operating within the European markets, but there are other more nuanced factors that may be reason to pay more careful attention. 

  • Sellers regularly interacting with the Center for Effective Dispute Resolution
  • Sellers participating in the Amazon Renewed program (see above)
  • Sellers with reason to monitor performance metrics like NRR or PQRR
  • Sellers regularly requiring compliance testing (would be encouraged to look into Lab Central)

What can I do to prepare for the Amazon pricing policy changes?

By reading this article and attempting to educate yourself on the transient rules and policies surrounding selling on Amazon, you’re already a step ahead of the game. 

The first thing you can do in order to prepare for these pending changes is review them carefully: first, examine the high level notes in the first section of this post and consider them within the context of how your business operates. Are you selling in European markets? Furthermore, do you frequently engage with any of the entities listed in these changes? 

If the answer to any of these questions is yes (or even maybe), it would be worthwhile to go directly to the source and read the details. You can do so here.

TLDR

Effective March 31st, 2022, Amazon will be making a variety of changes to policies affecting European vendors centered around things like mediation, price-fixing, and refurbished goods. If you are selling in European markets or actively working within any of these relevant topics, you should read up on the details of these changes and strategize accordingly.

The AMZ Atlas Approach

AMZ Atlas is a strategic partner that steers brands through the complex terrain of Amazon to secure brand control and drive optimal results. Instead of simply increasing your ad budget, we focus on optimizing the fundamentals (brand, product, pricing, and inventory) first, then obsess over finding the best way to build long-term value for your brands.

Our team is made up of ace strategists and tacticians, from former brand managers with hard-earned Amazon success to specialists who live and breathe the world of Amazon commerce, and veterans in areas like retail pricing, inventory, brand protection, and operational experts who thrive on efficiency.

We’re confident we can help you because we’ve scaled the highest peaks of Amazon ourselves and helped others do it.

Click here to learn more about how AMZ Atlas can help you to achieve peak performance on Amazon.

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