Amazon's Low-Price FBA fees allow sellers to benefit from lower fulfilment costs when a low-value product sells. In this article, we'll cover the FBA Low-Price Profit Guard feature and how you can use it to ensure you are always making the most profit possible, even when fees jump crossing this threshold.Applying the FBA Low-Price Profit Guard
The FBA Low-Price Profit Guard feature is assigned as part of your Amazon Repricing Rule. Follow the steps below to find the feature,- Click Repricing Rule on the left-hand side Navigation bar
- Click on the edit button of the rule you want to add this setting to
- Click on the Advanced Options tab
- Find the Low-Price Profit Guard feature under Profit Protection
By default, this feature will be set to Does not apply, which effectively means it doesn't do anything. Change the dropdown to FBA Low-Price Profit Guard to enable the feature. You can also set the rounding setting. We'll cover both of these features in the following section.
What does the FBA Low-Price Profit Guard do?
When your product's price crosses from below the Low-Price threshold to above it, there are certain price points where you could sell your product at a higher price but with lower profits. The Repricer tool automatically calculates this range, called the exclusion range, and the FBA Low-Price Profit Guard ensures your products are not priced within this range.
For example, if your fee increases by $0.55 when your price exceeds $10, the Repricer will prevent your product from being priced between $10 and $10.55. It will automatically adjust your price above or below this exclusion range to protect your profit margin. If your price is decreasing, it will adjust to the low price ($10 in this case), and if your price is increasing, it will adjust to the high price ($10.55 in this case).Use Rounding to determine option
By default, FBA Low-Price Profit Guard will set your price just above or below the exclusion range, depending on whether the price is increasing or decreasing. The Use rounding to determine if my product increases or decreases when entering FBA Low-Price threshold setting allows you to round up or down instead.For example, if the calculated price is in the lower half of the exclusion range (e.g., $10.22), the system will round down to the lower threshold price ($10). If the calculated price falls in the upper half of the exclusion range (e.g., $10.27), it will round up to the higher threshold ($10.55).
If rounding is off, the calculated price won't be considered and your price will just move to either $10 or $10.55 depending on whether the price is increasing or reducing due to the price movement.
Further Reading
Learn More about using Net Margin to improve your Min Max calculations in this articleLearn more about avoiding Price Wars in this article
