Amazon Discount System is a DISASTER


#1

I have been selling one product on Amazon since 2 years now never been a day without sales last week i suddenly notice Amazon start giving discount on my product (amazon pay this discount to buyers not you) I posted even here to ask what it is.

Yesterday I notice amazon has pulled the discount & suddenly this product has lost the buy box first time in 2 years & AMAZON CHOICE tag everything & today is first day in 2 years with no sales.

This Amazon discount can apply to any of your product without even asking you but you have choice to send email to Amazon to tell them you are not interested in any such discount offering service by Amazon which is what I have done now so ask Amazon not to offer any discount on my product.

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After posting my above message I was selling product for USD 49.99 all the time Amazon got down to USD 45.98 now I change the price to USD 44.99 immediately buy box , Amazon choice tag is back. WHAT A DISASTER now I will be loosing USD 5 on each I have been selling this proudct in THOUSANDS


#2

Chances are your product is being offered at a lower price on Walmart. Or it could be Costco or Target. We had the same thing happen and the buy box came back within hours of pulling the product from Walmart.


#3

For those, who may not be familiar with the program: Discounts Funded by Amazon.

Amazon does this, just for the reasons you outlined. If you won’t lower your price, Amazon will temporarily offer a discount, hoping you will permanently lower your price. Personally, I think it’s terrible, unless they offer site-wide discounts, not limiting it to items, they pick and choose, screwing it up for sellers.


#4

Will this affect my payment?
No, the Discounts funded by Amazon program will not affect your payment. You will be paid for the full item price that you set.

If this is funded by Amazon, why do you care?


#5

Once amazon stop giving that discount you will loose the buy box & You will be screwed to put your price down to match that discount which Amazon was offering.


#6

Might be but those are not control by us but our dealer I will have to check.


#7

Maybe you do not need a Buy Box. Not every product does. One day of no sales means very little. Or maybe Walmart is getting the sales because you can’t or won’t compete…


#8

i change back to original price to see what happens.


#9

Why would you not allow Amazon to offer discounts on your products if it’s not coming out of your pocket? This may even increase sales. Just curious.


#10

have you read it completely…? if they pull the discount out you will loose the buy box then you will have to permanently lower your price.


#11

My apologies I didn’t read your post correctly, that seems so strange? We have experienced quite a few buy boxes that have recently disappeared off various listings that we sell on, the BB on the listings that dropped off appeared to be where there were only 1 or 2 sellers, not certain that this was the reason but it did seem to fit a pattern. Regardless I hope you are able to sell at your original price and get the BB back it does make a huge difference with sales. $5 is a big hit to take especially if you are moving large quantities. Keep us posted :slight_smile:


#12

Do you think by not lowering the price is why BingBing lost the BB? This whole BB is a mystery to me, I lost the BB completely off one of my listing so I lowered the price by $5 but the BB did not return, I waited a few days and then increased the original asking price by $5 and then magically the BB returned. FYI my product did not have a discount attached to it. According to the discount policy program this will not effect BB eligibility which really doesn’t mean much if there is no BB. :see_no_evil:


#13

You don’t have to lower your price…you decided to lower the price. Amazon didn’t change your price…you did. you could have waited to see what happens but you got scared after about 12 hours and reacted.


#14

Read above i have replied I have put the price back to same to see what happen it isn’t winning the BB yet so lets wait for 1-2 day’s more.


#15

Is it the reason I keep seeing discount -$X.YZ and then Amazon’s refund +$X.YZ in the account statement everyday? I never asked the question, 'coz it seems alright as long as it adds up.


#16

Because, as with the OP’s case, Amazon is technically, forcing a seller, to lower their price.

If I purchase an item for $50, at a time when Amazon is offering a 10% discount; I like the item and come back a week later to purchase another, but the price is now $50, instead of $45, I may buy it again, but will likely look for a lower price elsewhere. Why should I pay $5 more?

So the pattern continues - other buyers may have placed the item in their shopping cart, see the discount is gone and pass it by.

The worst part is, many sellers, will also lose the Buy Box, once Amazon ends their promotion. The Seller, may have ordered three to four times the amount of Inventory they normally purchase for the item, because of the sudden influx of sales, with the discount applied.

Now, the Seller has more inventory than they usually have for the product and stuck with it, because the discount, not only affected the Seller’s item, Amazon discounted, but triggered a chain of repricing events, for similar products down the line, devaluing the product and similar products down the line.

Many sellers, only look at one aspect of a situation, (i.e.: Who cares, I’m still getting the same amount of money?) ignoring the possible tsunami effect, one little discount, by Amazon, can trigger.

Here’s a perfect example. I originally purchase the 12" version of this item on Amazon. Two months later, I came back to find the price increased across the board. What did I do? Went comparison shopping and most certainly did not buy from Amazon.



#17

So since 2 day’s i kept same price & buy box never came today Amazon also confirm this is something done by system so it harm more then benefiting so we will be permanently loosing USD 5 for no reason on 1000s of pcs we sell every month. .

Will suggest others to better send email to Amazon ahead to remove all your ASIN from AFD (Amazon funded discount) before your listing get attacked by this.


#18

Technically, not exactly. Your price being lower, Amazon fees will be lower as well :slight_smile:


#19

Dear Bingbing,

Try increasing prices by USD 1 every 2 to 3 days. If you start losing buybox again, try after 2/3 more days. In about 2 to 3 weeks, you should be back to original price with buy box. Unfortunately it is holiday season, mean lots of sale and lots of lost opportunity for you.


#20

Amazon is offering this discount because they think that the sales of this product have a high likelihood of going to some other site.

If they do, you may make no sales.

Amazon is offering this discount, so buyers do not get the idea that other sites are cheaper and change their buying patterns.

Sellers who have a problem with this might just be inferior to whoever is offering the product on other sites.Such sellers need to reconsider their sourcing, rather than than cry about BB effects.

Unlike so much of the BB criteria, this one might actually make sense and benefit us all.