Amazon launches new service 'Sold by Amazon' that optimizes the price of marketplace products with algorithms


Christian Wiediger

It is reported that Amazon has launched a new system 'Sold by Amazon (SBA) ' in the United States that determines the optimum price with an algorithm for third-party sellers who sell products on the marketplace.

Amazon new program Sold by Amazon amid pricing policy scrutiny

'A slippery slope': Amazon wants to control third-party sellers' product pricing | Modern Retail

SBA's algorithm sets prices for sellers' products that participate in the SBA program to be the 'lowest' among competitors like Wal-Mart and eBay and other sellers on the Amazon Marketplace. thing. Participation in the SBA program is voluntary for the seller, and if you agree to participate in the SBA, the item price will be freely decided by Amazon, not the seller. Instead of not being able to set the price on their own, the seller is guaranteed a 'minimum return' to avoid loss.

For example, if the seller agrees to the 'minimum profit' of 2000 yen, even if Amazon sells with the product price set to 1500 yen, 2000 yen will be paid to the seller and the deduction loss of 500 yen will be. Amazon will make up for it.


half point

Amazon's representative told news media CNBC, 'SBA's pricing algorithms not only save time and effort, but also increase sales. In addition, the'lowest revenue'feature allows sellers to lose money. You can feel reassured that you won't. '

SBA is provided as an additional function of 'Fulfillment by Amazon (FBA)', a service for marketplace sellers that Amazon takes care of product storage, order processing, delivery, and return handling, and is a member of FBA. Marketplace sellers will be able to use SBA at no additional charge.

Fulfillment by Amazon (FBA)

But on the other hand, Chris McIntyre, founder of e-commerce marketing company Batty Fang , said, 'Amazon is smart and expects marketplace sellers to become'Amazon addicts'. Amazon is a new service. We set the usage fee low at the start, but we tend to raise the usage fee as the service grows. Of course, as the service grows, the maintenance cost increases, so Amazon is 'sneaky' in this respect. I can't blame you, but be careful not to rely entirely on Amazon's services. '

It is said that the SBA has already started service in the United States, but it seems that most of the functions are limited at the very early stage.

in Web Service, Posted by darkhorse_log