Q. Is it mandatory to track price trends with external tools?

A. Yes, it can be said to be practically mandatory. It is difficult to accurately trace and grasp timing like price rises accompanying competitor inventory reduction using only Seller Central's standard functions.

Q. What is the cause of not getting the cart even if the price is lowered?

A. Delivery speed, seller ratings, order defect rate etc. affect it compositely. Price is important, but if account health is low, you cannot get the cart even at the lowest price.

[For New EC Managers] Basic Course to MECEly Elucidate Amazon's "Dynamic Pricing" Mechanism

In the huge marketplace of Amazon, product sales prices are not fixed even for a moment. What new EC managers must first understand is that Amazon's "price trends" are not just price-cutting wars, but the result of Dynamic Pricing based on advanced algorithms. This article explains price strategies to maximize Buy Box acquisition rates and secure profits in a MECE (Mutually Exclusive, Collectively Exhaustive) manner.

Table of Contents (Click to Expand)

1. Three Decisive Factors of Price Trends on Amazon
2. Correlation Logic Between Buy Box (Cart) Acquisition and Price
3. Visualization and Analysis of Competitor Price Fluctuation Data
4. Operational Design of "Automated Price Revision" That Does Not Cut Profits

1. Three Decisive Factors of Price Trends on Amazon

To understand Amazon price trends, it is necessary to decompose factors into MECE. Prices fluctuate mainly in the following 3 layers.

Amazon Retail Inventory Status: If Amazon itself is selling, there is a tendency for the entire marketplace price to rise the moment inventory runs out.
Competitor Seller Chasing Algorithm: Many sellers are set to automatically lower by 1 yen if another company lowers by 1 yen, and this becomes a trigger inviting "price collapse".
External Mall Prices (External Reference): Amazon monitors prices of other EC malls, and if higher than other stores, there is a risk of being excluded from "Featured Offer (Cart)".

2. Correlation Logic Between Buy Box (Cart) Acquisition and Price

On Amazon, the cheapest seller does not necessarily get the cart. However, maintaining the "lowest price" in price trends carries a very high weight in algorithmic scoring. Especially for beginners, it is important to track trends in "real price including points".

3. Visualization and Analysis of Competitor Price Fluctuation Data

By analyzing past price trend data, you can predict price bottoms during sale periods and timing when competitors drop out. The graph below is an example showing the correlation between typical price trends and inventory counts in a certain category.

4. Operational Design of "Automated Price Revision" That Does Not Cut Profits

It is essential not only to track price trends but also to strictly set your own "minimum price". Unlimited price competition works in favor of competitors with capital. As a MECE operational design, combining "price adjustment based on inventory turnover" and "tolerating price differences according to competitor delivery speed" is recommended.

FAQ

Q. Is it mandatory to track price trends with external tools?: A. Yes, it can be said to be practically mandatory. It is difficult to accurately trace and grasp timing like price rises accompanying competitor inventory reduction using only Seller Central's standard functions.
Q. What is the cause of not getting the cart even if the price is lowered?: A. Delivery speed, seller ratings, order defect rate etc. affect it compositely. Price is important, but if account health is low, you cannot get the cart even at the lowest price.