Amazon increasing retail prices above RRP despite Net PPM being well above target
Has anyone else supplying Amazon through Vendor Central seen widespread retail price increases since late August/early September?
Amazon has pushed many of our products above their recommended retail prices. Some prices keep fluctuating, while others have stayed high. This has coincided with a noticeable drop in sales and purchase orders.
Our Net PPM was already well above our agreed target before these increases, and it remains above target now. This isn’t simply a case of higher retail prices bringing previously low margins up to target, which makes the reason for the increases harder to understand.
Our contact has attributed several increases to automated external price matching, but we haven’t been given the matched listings, so it’s difficult to understand what is driving the changes.
Some products have now returned to their previous prices during the October event, while others remain higher. I’m not assuming the event is the cause, but the timing has caught our attention.
For other 1P vendors:
- Have you experienced a similar pattern despite Net PPM being above target?
- Have you managed to get Amazon to identify or correct an external price match?
- Has updating the List Price/RRP in Vendor Central made any difference?
- What helped you get a useful review from the pricing team?
Interested in first-hand experiences and practical fixes. We’re still trying to establish the cause.